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

Mealey's California Section 17200

July 03, 2023
MSP Recovery Third-Party Payer Class Action Out In Exactech MDL For Lack Of Standing

BROOKLYN, N.Y. — A New York federal judge overseeing the Exactech orthopedic device multidistrict litigation has dismissed a class action filed on behalf of third-party payers for lack of subject matter jurisdiction but allowed the plaintiff to file a motion to amend its complaint.
June 30, 2023
Authors Say AI Chatbot Companies Use Copyrighted Work Without Credit

SAN FRANCISCO — Two authors filed a putative class action accusing the companies that created ChatGPT and other AI chatbots of copyright infringement, unjust enrichment and violating California’s unfair competition law (UCL) by using their copyrighted works of fiction in the training datasets for their software without permission or compensation.
June 29, 2023
AI Chatbot Companies Accused Of Stealing Millions Of Users’ Data In Class Suit

SAN FRANCISCO — Sixteen anonymous plaintiffs on June 28 filed a putative class action against companies that created ChatGPT and other AI chatbots, including Microsoft Corp., accusing them of violating federal privacy laws and state consumer protection laws, including California’s unfair competition law (UCL), by collecting “sensitive information from millions of individuals” to train their chatbots.
June 27, 2023
Insureds Appeal California Court’s Ruling In Insurer’s Favor In COVID-19 Dispute

LOS ANGELES — Insureds filed a notice appealing a Los Angeles County Superior Court’s judgment on a jury’s special verdict in favor of a commercial property insurer in a breach of contract coverage lawsuit arising from the coronavirus pandemic, challenging the jury’s finding that SARS-CoV-2 did not cause any direct physical loss or damage to the insureds’ hotel on or before June 1, 2020.
June 26, 2023
Consumer Says AI-Powered ‘Robot Lawyer’ Can’t Compel Arbitration Of UCL Suit

SAN FRANCISCO — A consumer on June 23 filed a brief in California federal court opposing a motion to compel arbitration of his putative class claims including for violation of California’s unfair competition law (UCL) against a company that operates an AI-based “robot lawyer,” writing that the company failed to provide evidence that it notified him of its arbitration agreement.
June 26, 2023
In Dispute Over Terms Of Service, Copyright Preemption, Supreme Court Denies Cert

WASHINGTON, D.C. — In its June 26 order list, the U.S. Supreme Court refused to weigh in on a case that asked whether federal copyright law supersedes a contractual provision in a website’s terms of service (TOS), which bars copying.
June 26, 2023
Company Says Archdiocese Is Wrong About Jurisdiction In Drilling Dispute

LOS ANGELES — An energy company has filed an opposition brief in a California court arguing that the Roman Catholic Archdiocese of Los Angeles erroneously claims that the court lacks jurisdiction to rule on the company’s complaint for breach of contract in relation to a dispute over the operation of an oil and gas production facility on land owned by the archdiocese.
June 26, 2023
Panel Affirms Estate Adviser’s Demurrer To UCL Claim For Reducing Inheritance

LOS ANGELES — A California appellate panel affirmed a trial court’s judgment sustaining an estate adviser and her company’s demurrer to a lawsuit against them for violating California’s unfair competition law (UCL) by reducing the inheritance adult children received based on the preparation of a trust for their deceased father after finding that the children failed to allege an economic injury, and dismissed the appeal against another financial adviser.
June 23, 2023
Supreme Court: Arbitrability Appeal Mandates Stay Of Proceedings By Trial Court

WASHINGTON, D.C. — A mandatory stay of trial court proceedings while a ruling on a case’s arbitrability is appealed “reflects common sense,” a U.S. Supreme Court majority held June 23, reversing the Ninth Circuit U.S. Court of Appeals’ decision to not grant stays to a cryptocurrency firm in two lawsuits in which it asserted that a contractual arbitration clause preempted claims against it.
June 23, 2023
9th Circuit Affirms Charles Schwab Robo-Adviser Suit Precluded By SLUSA

SAN FRANCISCO — A putative class complaint by Charles Schwab Investment Advisory Inc. and Charles Schwab Corp. (together, Charles Schwab) customers who allege that the use of robo-advisers in the handling of their assets harmed their investments is barred by the Securities Litigation Uniform Standards Act (SLUSA), a Ninth Circuit U.S. Court of Appeals panel ruled, affirming a trial court’s order.
June 23, 2023
Five Guys, Franchisee’s $1.2M Wage, Hour Class Settlement Granted Final Approval

FRESNO, Calif. — A federal judge in California on June 22 approved a $1.2 million class settlement to be paid by the operator of Five Guys restaurants and Five Guys Enterprises LLC to end a complaint by employees who alleged that they were not always permitted to take meal and rest breaks, were required to continue working after clocking out, had to use personal vehicles for work without reimbursement and were subjected to background check disclosure forms that did not comply with federal and state statutes.
June 21, 2023
HBOR, UCL Claims Survive Motion For Summary Judgment In Wrongful Foreclosure Suit

SACRAMENTO, Calif — A California federal judge found that “at least one disputed issue of material fact” remains in a lawsuit alleging wrongful foreclosure and eviction and partially granted and partially denied a lender’s motion for summary judgment.
June 21, 2023
Partial Dismissal With Leave To Amend Granted In Wage Class Suit Against Topgolf

SACRAMENTO, Calif. — A federal judge in California partly granted, largely with the leave to amend, a golfing chain’s motion to dismiss wage-and-hour claims including those under the state’s unfair competition law (UCL) that were brought by a former employee, opining that the complaint failed to make sufficient “factual allegations.”
June 21, 2023
Judge Won’t Dismiss UCL Suit Against ‘Natural’ Drink Maker For Artificial Flavors

SAN FRANCISCO — A California federal judge granted in part and denied in part a beverage maker’s motion to dismiss a putative class action accusing it of violating California’s unfair competition law (UCL) and other statutes by advertising its juice and tea beverages as “100% Natural” when they in fact contain high fructose corn syrup (HFCS) and other unnatural ingredients.
June 21, 2023
Dismissal Motion Hearing Date Set In Privacy, UCL Class Suit Over Meta’s Data Tracking

SAN FRANCISCO — Approving a stipulation by Meta Platforms Inc. and the plaintiffs who sued it for alleged violations of the Computer Fraud and Abuse Act (CFAA) and California’s unfair competition law (UCL), a California federal judge rescheduled a hearing for Meta’s dismissal motion for the third time, this time setting it for Aug. 17.
June 21, 2023
Organic Milk Producer Accused Of ‘Inhumane’ Practices In Putative Class UCL Suit

SAN FRANCISCO — A consumer filed an amended putative class complaint in California federal court accusing an organic milk producer of violating California’s unfair competition law (UCL) and other statutes by misrepresenting its product with “idyllic imagery,” including images of cow mothers with calves, when in fact its milk is produced by cows that are “inhumanely” separated from their calves at birth.
June 20, 2023
California Judge Approves $100 Million Riot Games Bias Class Settlement

LOS ANGELES — A $100 million settlement to be paid by Riot Games Inc. to end a gender bias class complaint by female employees was granted final approval by a California judge.
June 20, 2023
Consumer Accuses Grocery Chain Of Deceptive BOGO Scheme

McKINLEYVILLE, Calif. — A consumer filed a putative class action against a grocery store owner and its subsidiary accusing the companies of violating California’s unfair competition law (UCL) and other statutes by deceptively offering customers “Buy One, Get One Free” (BOGO) discounts while increasing prices so that customers effectively pay for the “free” product.
June 19, 2023
Google, YouTube Users Reply To FTC’s Amicus Brief In Children’s Privacy Suit

SEATTLE — Responding to an amicus curiae brief filed by the Federal Trade Commission, Google LLC and a group of minor YouTube users reiterate their competing positions on the scope of the preemption clause of the Children’s Online Privacy Protection Act (COPPA) in the context of Google’s motion for rehearing by the Ninth Circuit U.S. Court of Appeals after a panel ruling that reinstated state law privacy and consumer class claims against the technology giant.
June 16, 2023
Settlement Of Up To $117.7M To Proceed In Life Insurance Cost Increase Suits

PHILADELPHIA — A Pennsylvania federal judge has granted preliminary approval of a class settlement including a fund of up to $117.75 million and a five-year cost of insurance (COI) rate increase freeze that would resolve two similar cases regarding universal life insurance policies.
June 15, 2023
TikTok Doesn’t Oppose Appointment Of Class Counsel In Moderators’ Suit

SAN FRANCISCO — TikTok Inc. and its parent company in a June 14 brief took no position on two former TikTok moderators’ motion to appoint their lawyer as interim lead counsel in a putative class action accusing the social media app’s owners of exposing them to disturbing content, shortly after a judge ruled that the suit may proceed except for their claim for violation of California’s unfair competition law (UCL).
June 15, 2023
Magistrate Won’t Dismiss Suit Claiming U.S. Sake Falsely Advertised As Made In Japan

SAN FRANCISCO — A California federal magistrate judge granted in part and denied in part a U.S. company’s motion to dismiss a consumer’s putative class action accusing it of marketing Japanese sake liquor in a manner that would deceive consumers into believing that it is from Japan when it is actually manufactured in California.
June 15, 2023
Consumer Says ‘Sweepstakes’ App Is Illegal Gambling In Putative Class Suit

LOS ANGELES — A consumer filed a putative class action in California federal court claiming that he lost up to $8,000 using an app that describes itself as a “social sportsbook and sweepstakes” but that he contends is actually an illegal sports gambling game that he says is being operated in violation of California’s unfair competition law (UCL).
June 15, 2023
Thinx Settles Class Claims Over Chemicals In Menstrual Underwear For $5M

NEW YORK — A federal judge in New York granted final approval of a $5 million class settlement to be paid by the maker of menstrual underwear accused by consumers of advertising the products as a safe, healthy and environmentally friendly alternative while the products actually contain a variety of chemicals, including multiple polyfluoroalkyl substances (PFAS) and silver nanoparticles.
June 14, 2023
Judge Denies Farming Company’s Anti-SLAPP Motion To Strike Suit Over ESG Claims

SAN DIEGO — A California federal judge denied a farming company’s motion to strike a putative class action accusing it of violating California’s unfair competition law (UCL) and other laws under California’s anti-Strategic Lawsuit Against Public Participation (SLAPP) statute based on claims about its agricultural practices made in an environmental, social and governance (ESG) report, finding that the ESG claims comprise commercial speech not protected by the anti-SLAPP law.