Archives: Class Actions

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Judge Netburn Shrinks an Arbitration Clause

Here’s a pop a quiz, drawn from Judge Netburn’s Report and Recommendation in Borecki v. Raymours Furniture Co., Inc. Is the following arbitration provision in a contract between a store and its customer a broad or narrow arbitration requirement: “[A]ny claim, dispute, or controversy between you and us that in any way arises from or relates to the … Continue Reading

Judge Scheindlin Keeps Rating Agencies on the Hot Seat (Update on DOJ Filing)

Judge Scheindlin continues to define the law for rating agencies, finding that they don’t have immunity from fraud claims on the ground that their ratings are merely their own opinions, not statements of fact. That’s pretty significant for lawsuits arising out of the subprime mortgage meltdown. Here’s how she nicely sums up the essence of … Continue Reading

Judge Scheindlin on Watching Sports

Even an avid sports fan might reasonably believe that there’s no shortage of sports programming on television. But according to Judge Scheindlin in Laumann v. National Hockey League, predatory practices by the National Hockey League and Major League Baseball, and television providers, may be restricting choice and pushing up the cost of watching our favorite teams. … Continue Reading

Judge Batts on Madoff Feeder Funds

Judge Batts’ opinion in In Re Kingate Securities Litigation shows how difficult it can be to bring a class action alleging state law claims– even against an off-shore Madoff “feeder fund” that lost $3 billion of its investors’ money.  The funds in question were pass through vehicles which gave investors the “opportunity” to invest with Madoff.  Because they were off-shore, the funds investors … Continue Reading

Judge Crotty Dismisses Negligence Based Securities Claims Against Barclays Despite Losses of £30 Billion

Several of our posts (here, here and here) have discussed the challenges in asserting fraud claims under Section 10(b) of the 1934 Securities Exchange Act.  But, it’s not easy to bring negligence and strict liability claims under Section 11 and 12(a)(2) of the 1933 Securities Act either, as Judge Crotty points out in a clear and crisp opinion … Continue Reading

Judge Castel Prohibits a Plaintiff from Pursuing His Own and a Derivative Action

Judge Castel’s decision in Bahnmaier v. Bank of America, 10 Civ. 1234 (S.D.N.Y.) reaffirms the Southern District approach that a plaintiff cannot at the same time represent the shareholders of a corporation in a derivative suit against the corporation’s officer and directors, while at the same time pursing his own related individual lawsuit against the corporation.   Under Rule 23.1(a), a derivative plaintiff … Continue Reading

Judge McMahon on Twitter and Class Notice

Can u tweet notice of a class action to prospective class members?  On the facts of Jermyn v. Best Buy Stores, No. 08 Civ. 00214 (CM), Judge McMahon said you can’t. Plaintiff Jermyn bought a camera at a Best Buy store in New York, but a week later found the same camera at a cheaper price at another store.  Best Buy … Continue Reading

Judge Preska on Auction Rate Securities and Loss Causation

Judge Preska’s opinion in In re Merrill Lynch Auction Rate Securities Litigation, 2010 U.S. Dist. LEXIS 126076 (Nov. 30, 2010 S.D.N.Y.), has an interesting discussion of loss causation under the federal securities laws.  The Louisiana state agency that owns the Superdome (“Superdome”) hired Merrill for debt refinancing advice in 2005.  Merrill advised the Superdome to issue a form … Continue Reading

Judge Stein and Citigroup’s Subprime Meltdown

Judge Stein’s opinion in In re Citigroup Securities Litigation.pdf, 2010 WL 4484650 (S.D.N.Y. November 9, 2010), is key reading for those who want to understand the “gallimaufry of financial instruments” at the heart of Wall Street’s subprime mortgage meltdown.  The financial instruments explained by Judge Stein are: Subprime and Alt-A Mortgages, Residential Mortgage Backed Securities, … Continue Reading

Judge Marrero on the scope of the General Business Law

Judge Marrero weighed in on the scope of a consumer claim under § 349 of the NY General Business Law (“GBL”) in Kaufman v. Sirius XM Radio, Inc. 2010 WL 4674829 (S.D.N.Y. 2010).  In that case, plaintiffs –- putative national class members — alleged they were charged an administrative fee that was not disclosed by their … Continue Reading

Judge McMahon addresses the General Business Law, venue, and online travel

How can anyone resist reading a decision on a motion to dismiss with the line “[t]he argument attributes to consumers a level of stupidity that the Court cannot countenance…?”  Judge McMahon’s decision in Chiste v., 2010 WL 4630317 (S.D.N.Y.), of course, is worth reading for other reasons as well. Defendants are online travel companies. Plaintiffs … Continue Reading