Mealey's California Section 17200 : Mealey's : Legal News & Analysis

Mealey's California Section 17200

April 11, 2024
Insurer Accused Of Using AI Software To Deny Claims ‘En Masse’ In Class Suit

OAKLAND, Calif. — An insured filed a putative class action in California state court accusing his insurer of violating California’s insurance regulations and its unfair competition law (UCL) by using artificial intelligence (AI) software to deny claims for coverage.
April 10, 2024
Viability Of UCL Class Action Involving Asbestos And Talc Rests With 9th Circuit

SACRAMENTO, Calif. — The Ninth Circuit U.S. Court of Appeals heard oral arguments over whether allegations of a decades-long advertising campaign about the safety and purity of talcum powder sufficiently specifies the advertising in question and saves a California unfair competition law (UCL) class action alleging that in reality the products contained asbestos and other contaminants.
April 10, 2024
Pharma Companies Seek High Court Review Of Ruling Reversing FCA Suit Dismissal

WASHINGTON, D.C. — Pharmaceutical companies accused of violating the False Claims Act (FCA) by artificially inflating drug prices filed a petition for writ of certiorari in the U.S. Supreme Court, seeking review of the Ninth Circuit U.S. Court of Appeals’ reversal of a district court’s dismissal of a qui tam suit against them, arguing, in part, that the panel “created a circuit split by holding that a relator can avoid the public disclosure bar by ‘stitching together’ public disclosures.”
April 10, 2024
Products’ Nutrition Claims With ‘Childlike Drawings’ Are Puffery, Judge Says

SAN FRANCISCO — A California federal judge granted in part and denied in part a fruit company’s motion to dismiss a putative class action against it for labeling various fruit products as “Healthy” and providing “Good Nutrition” despite containing significant amounts of sugar, writing that the statements are next to “childlike drawings” and therefore unlikely to deceive a consumer.
April 09, 2024
Judge: Deception Claims Over ‘100% Recyclable’ Plastic Bottles May Proceed

SAN FRANCISCO — A California federal judge on April 8 denied a motion to dismiss a putative class action brought by three consumers and The Sierra Club accusing The Coca-Cola Co. and two other bottling companies of violating California’s unfair competition law (UCL) and other laws by labeling plastic bottles as “100% recyclable,” finding that the plaintiffs sufficiently alleged based on a survey that most consumers would be deceived.
April 08, 2024
Driver Appeals Grant Of Summary Judgment On UCL Claim For ‘Unfair’ COVID Premiums

SAN FRANCISCO — A driver on April 5 appealed to the Ninth Circuit U.S. Court of Appeals a California federal judge’s grant of summary judgment in favor of GEICO after finding that it did not violate California’s unfair competition law (UCL) by unfairly profiting from a premium giveback program initiated during the COVID-19 pandemic.
April 04, 2024
Panel Affirms Dismissal Of Suit Demanding $160,000 From Medi-Cal Insurer For Supplies

LOS ANGELES — A California appellate panel on April 3 affirmed the dismissal of a medical supplies provider’s lawsuit against an insurer that operates under the state’s Medicaid program, finding that the provider failed to plead the existence of a contract that was breached, fraud or a violation of California’s unfair competition law (UCL) based on the provider’s alleged nonpayment of more than $160,000 for medical supplies.
April 03, 2024
Google, Privacy Plaintiffs Propose Injunctive Relief To Settle Data-Tracking Suit

SAN JOSE, Calif. — Leapfrogging over the typical procedure of seeking preliminary approval of a proposed class action settlement over Google LLC’s purported tracking of users’ internet browsing activity and data, the named plaintiffs filed a motion in California federal court seeking final approval of a “groundbreaking” agreement under which the technology giant pledges to make changes to its data collection and retention practices, among other things.
April 03, 2024
Chili’s Customers: Class Damages Methodology Review Not Needed In Data Breach Case

WASHINGTON, D.C. — The U.S. Supreme Court does not need to review a question presented by a restaurant chain owner in a data breach case concerning the damages methodology used by the certified classes’ expert as the underlying decision doesn’t present the question Brinker International Inc. seeks to resolve, restaurant customers argue in their respondent brief.
April 02, 2024
Judge Grants Summary Judgment In Favor Of Baby Food Maker In Heavy Metals Suit

SAN FRANCISCO — A California federal judge granted a baby food maker’s motion for summary judgment on class action claims against it for allegedly concealing the presence of heavy metals in its “organic” baby food products in violation of California’s unfair competition law (UCL) and consumer protection laws of several other states.
April 02, 2024
HP’s $18M Age Bias Class, Collective Settlement Granted Final Approval

SAN JOSE, Calif. — A federal judge in California granted final approval of an $18 million settlement to be paid by HP Inc. and Hewlett-Packard Enterprise Co. (together, HP) to end a collective and class complaint accusing the technology company of terminating older workers during workforce reductions and replacing them with younger employees in violation of federal and California law, including California’s unfair competition law (UCL).
April 02, 2024
Microsoft, ChatGPT Say Class Suit’s UCL, Privacy Claims Over ChatGPT Training Fail

SAN FRANCISCO — Imposing liability on companies that used information posted to the internet by “hundreds of millions of Americans” to train artificial intelligence would be unprecedented, and the plaintiffs in a putative class action have not shown that the alleged conduct violated underlying laws required for California unfair competition law (UCL) claims or that that they incurred an injury as required to proceed with those and other claims, Microsoft and OpenAI entities argue in reply briefs filed in California federal court in support of dismissal.
April 01, 2024
Judge Won’t Reconsider Order Allowing Heavy Metal Claims Against Chocolate Company

SAN DIEGO — The chief judge of the U.S. District Court for the Southern District of California on March 29 denied a chocolate company’s motion for reconsideration of the court’s order denying in part its motion to dismiss a putative class action against it for allegedly concealing the presence of heavy metals in its chocolates, rejecting the company’s argument that the court’s ruling permitting labeling claims was based on a “misunderstanding.”
March 29, 2024
Flyer’s Suit Against Delta For Deceptive ‘Greenwashing’ Not Preempted, Judge Rules

LOS ANGELES — A California federal judge on March 28 granted in part and denied in part Delta Air Lines Inc.’s motion to dismiss a flyer’s putative class action accusing the airline of violating California’s unfair competition law (UCL) and other laws by misleading consumers with “greenwashing” statements such as describing itself as “carbon-neutral” based on its environmental, social and governance (ESG) investments.
March 28, 2024
Judge Nixes Some Lead Claims Related To Trader Joe’s Dark Chocolate Products

SAN DIEGO — A federal judge in California on March 27 dismissed without prejudice California state law claims, including an unfair competition law (UCL) claim, against Trader Joe’s Co. related to allegations that its dark chocolate products contain lead and other heavy metals but denied dismissal with regard to claims brought pursuant to business practice laws in other states.
March 27, 2024
Judge Allows UCL, Negligence Claims Against Roblox In Mothers’ ‘Gambling’ Suit

SAN FRANCISCO — A California federal judge on March 26 granted in part and denied in part a motion by Roblox Corp. to dismiss a putative class action brought against it by two mothers who accuse it of being liable for their minor children’s engagement in illegal gambling games on the Roblox platform.
March 27, 2024
Judge Remands UCL Suit Against Gift Card Issuer Over Drained Cards

SAN FRANCISCO — A California federal judge on March 26 remanded a complaint filed by the San Francisco city attorney on behalf of California against a gift card issuer and three banking entities that the city attorney accuses of violating the state’s unfair competition law (UCL) by issuing insufficiently secured pre-loaded debit cards that were allegedly drained before being used by customers who paid for the cards.
March 27, 2024
Judge Dismisses Construction Defects Insurance Suit After Parties Agree To Settle

OAKLAND, Calif. — After the parties notified the court that they had reached a global settlement, a federal judge in California on March 26 dismissed with prejudice the case between two excess insurers and a construction firm and related entities that sought a defense for a series of construction defect claims.
March 26, 2024
Judge Grants Preliminary Approval To Settlement For Lender’s ‘Junk Fees’

SACRAMENTO, Calif. — A California federal judge granted a motion for preliminary approval of a settlement under which Ocwen Financial Corp. and Ocwen Loan Servicing LLC (together, Ocwen) will pay an estimated $53 million to resolve a mortgagor’s class action claims against it for charging “hidden junk fees” in violation of the Racketeer Influenced and Corrupt Organizations Act (RICO) and California’s unfair competition law (UCL).
March 26, 2024
Panel Says Sex Toy Maker’s ‘Inconspicuous’ Arbitration Agreement Not Binding

LOS ANGELES — A California appellate panel on March 25 affirmed a trial court’s denial of a sex toy maker’s motion to compel arbitration of a putative class action filed against it by a consumer who claimed that the company deceptively marketed one of its products in violation of California’s unfair competition law (UCL), finding that the company’s “browsewrap” arbitration agreement could be viewed only by clicking a “tiny, inconspicuous link.”
March 26, 2024
UCL, Declaratory Judgment Counterclaims Tossed In Dispute Over Marks, Logo

HARTFORD, Conn. — Trademark infringement and false advertising plaintiffs secured dismissal on March 25 of allegations that they violated the California unfair competition law (UCL), with a federal judge in Connecticut ruling that complained-of securities transactions took place overseas.
March 25, 2024
Judge Grants Summary Judgment On Driver’s UCL Claim For ‘Unfair’ COVID Premiums

SAN FRANCISCO — A California federal judge granted GEICO’s motion for summary judgment on an insured’s claim against it for violating California’s unfair competition law (UCL) by unfairly profiting from a premium giveback program initiated during the COVID-19 pandemic, in part citing evidence that state insurance regulators deemed GEICO’s givebacks sufficient.
March 22, 2024
Meta, Spotify Back Epic’s Motion To Enforce Injunction In App Store Antitrust Row

OAKLAND, Calif. — Agreeing with plaintiff Epic Games Inc. that Apple Inc. has not complied with an injunction requiring it to permit app developers to inform users of methods of making in-app purchases (IAPs) outside of the App Store, Meta Platforms Inc., Spotify USA Inc. and others moved to file amicus curiae briefs in California federal court supporting Epic’s motion to enforce the injunction.
March 19, 2024
Plaintiffs Fire Back In UCL, Copyright Case Involving Google AI Training Data

SAN FRANCISCO — Individuals enjoy a property right in their personal information, and a complaint alleges unlawful and unfair conduct sufficiently enough for claims under all three prongs of the California unfair competition law (UCL), plaintiffs in a copyright and privacy class action accusing Google LLC of “wide-scale data theft” in the training of its artificial intelligence tell a federal court in opposing dismissal.
March 18, 2024
California AirTag Stalking Victims’ Claims Against Apple May Proceed, Judge Says

SAN FRANCISCO — A California federal judge on March 15 denied Apple Inc.’s motion to dismiss negligence and strict product liability claims brought against it by three plaintiffs who claim that they were stalked in California through the use of Apple’s AirTag devices but dismissed claims brought by 35 other plaintiffs, writing in a second order that the claims brought by out-of-state plaintiffs were insufficiently pleaded.