LexisNexis® Legal Newsroom
    Facebook Sued Over Scanning Of Users' Private Messages

    OAKLAND, Calif. - Two Facebook Inc. users filed a putative class action against the social networking giant on Dec. 30, alleging federal and state law violations springing from Facebook's purported reading and analyzing of users' private messages for the purpose of providing targeted advertising (Matthew Campbell, et al. v. Facebook Inc., No. 4:13-cv-05996, N.D. Calif.).

    Judge Bars Accrediting Agency From Downgrading City College Of San Francisco

    SAN FRANCISCO - A California judge on Jan. 2 granted a preliminary injunction in a California unfair competition law (UCL) case in which the State of California accuses a college rating agency of making a "politically motivated decision" to revoke accreditation from the City College of San Francisco in retaliation for its public policy stances (People of the State of California, ex. Rel. Dennis Herrera, San Francisco City Attorney v. Accrediting Commission for Community and Junior Colleges, No. 533693, Calif. Super., San Francisco Co.).

    DOJ Opposes Apple's Motion To Stay Injunction In E-Books Conspiracy Litigation

    NEW YORK - The U.S. Department of Justice and several states on Dec. 30 opposed Apple Inc.'s motion requesting a stay of the appointment of an external compliance monitor pending Apple's appeal to the Second Circuit U.S. Court of Appeals of a ruling that Apple conspired with publishers to fix prices of electronic books (United States of America v. Apple Inc., et al., No. 12 Civ. 2826, S.D. N.Y.; State of Texas, et al. v. Penguin Group $(USA$) Inc., et al., No. 12 Civ. 3394, S.D. N.Y.).

    Attorney Fees Awarded In Korean Air Lines Antitrust Litigation

    LOS ANGELES - A federal judge in California on Dec. 23 awarded $12.5 million in attorney fees and $574,000 in expenses to class counsel following a cash and coupon settlement between airline passengers and Korean Air Lines Co. Ltd. and Asiana Airlines Inc. on the passengers' claims that the airlines conspired to fix fares and fuel surcharges for passenger air transportation on flights between the United States and Korea (In re Korean Air Lines Co., Ltd. Antitrust Litigation $(All Actions$), MDL No. 07-01891, Master File No. CV 07-05107, C.D. Calif.).

    Consumer Protection Action Over 'Organic' Labeling Preempted, Court Says

    LOS ANGELES - Federal organic labeling law preempts California unfair competition law (UCL) and other claims based on consumer protection statutes, a state appeals court held Dec. 23 (Michelle Quesada v. Herb Thyme Farms Inc., No. B239602, Calif. App., 2nd Dist., Div. 3).

    2nd Circuit: Challenge To Microsoft's License, Multiuser Software Fails

    NEW YORK - A software maker failed to sufficiently allege that Microsoft Corp. violated Section 2 of the Sherman Act by restricting its Windows 2007 license to a single user and in pricing its multiuser software, the Second Circuit U.S. Court of Appeals affirmed Dec. 23 (MiniFrame Ltd. v. Microsoft Corporation, No. 13-1607, 2nd Cir.; 2013 U.S. App. LEXIS 25583).

    Class Opposed To Merger Of American, US Airways Appeals, Says Evidence Not Considered

    NEW YORK - The class plaintiffs who opposed the merger of bankrupt American Airlines Inc. and US Airways Group Inc. by filing an adversary complaint in the bankruptcy of American Airlines' parent company, AMR Corp., on Dec. 19 filed a designation of appeal contending that evidence presented in the U.S. Bankruptcy Court for the Southern District of New York was not considered (Carolyn Fjord, et al. v. AMR Corporation, et al. $(In Re: AMR Corporation$), No. 11-15463, Adv. No. 13-01392, Chapter 11, S.D. N.Y. Bkcy.).

    American Express Agrees To Settle Suit Targeting Discount Fee

    NEW YORK - A hotel and movie theater operator on Dec. 19 moved for the preliminary approval of a settlement of a putative class action in a New York federal court alleging that American Express Co.'s merchant discount fee violates antitrust provisions of the Sherman Act (The Marcus Corp. v. American Express Co., et al., No. 04-5432, S.D. N.Y.).

    Court: Consumer Must Seek Disclosure For Injury Under 'Shine The Light' Law

    LOS ANGELES - Under California's "shine the light" (STL) privacy law, consumers must actually try to request the required disclosures before an injury exists; a company's failure to provide contact information alone does not suffice, a state appeals court held Dec. 19 in affirming dismissal of California unfair competition law (UCL) claims (David Boorstein v. CBS Interactive Inc., No. B247472, Calif. App., 2nd Dist.).

    Opt-Outs Can't Use Verdict Against Dow To Establish Conspiracy, Judge Rules

    KANSAS CITY, Kan. - Dow Chemical Co. is not precluded by the doctrine of collateral estoppel from relitigating the issue of the existence of a conspiracy in antitrust actions by direct-action plaintiffs (DAPS) who opted out of the class action in polyether polyol price-fixing litigation that ended in a $1 billion judgment against Dow, a federal judge in Kansas ruled Dec. 16, in denying the DAPs' motion for partial summary judgment (In re: Urethane Antitrust Litigation $(Polyether Polyol Case: Carpenter Co., et al. v. BASF SE, et al.$), MDL No. 1616, Nos. 04-MD-1616, 08-2617, D. Kan.).

    Makers Of Pigment, Purchasers Get Final Approval Of Price-Fixing Settlements

    BALTIMORE - A federal judge in Maryland on Dec. 13 granted final approval of settlements worth $163.5 million between purchasers and the market leaders in the production of titanium dioxide on the purchasers' claims that the manufacturers engaged in price fixing, with the last agreement being reached on the eve of trial (In re Titanium Dioxide Antitrust Litigation [All Actions], No. 10-0318, D. Md.; 2013 U.S. Dist. LEXIS 176099, 2013 U.S. Dist. LEXIS 176100).

    Indirect Purchasers Reach $2.2M Settlement With Chinese Vitamin C Makers

    NEW YORK - Indirect purchasers on Dec. 13 moved for preliminary approval of a $2.2 million settlement with Weisheng Pharmaceutical Co. Ltd. and CSPC Pharmaceutical Group Ltd. - two Chinese manufacturers of vitamin C - on the indirect purchasers' allegations that the defendants conspired to unlawfully fix prices of vitamin C to be exported to the United States and committed other unlawful practices designed to inflate the prices of vitamin C sold to the purchasers in the United States (In re Vitamin C Antitrust Litigation $(All Indirect Purchaser Actions$), Nos. 06-MD-1738, 06-988, 06-987, 06-149, E.D.N.Y.).

    Immigration Law Firm, State Settle Competition Law Claims For $418,000

    SAN FRANCISCO - A law firm will pay California $418,000 to resolve state unfair competition law (UCL) claims alleging that the firm collected large fees while its attorneys did little or no work on the clients' immigration cases, under a settlement filed Dec. 16 (The People of the State of California, et al. v. Guajardo, Martin, et al., Jamie Hernandez, et al. v. Guajardo, Martin, et al., Nos. 505449, 505450, Calif. Super., San Francisco Co.).

    Judge Dismisses Monster's Action Seeking To Enjoin San Francisco City Attorney

    LOS ANGELES - The Younger doctrine and the Anti-Injunction Act bar Monster Beverage Corp.'s California unfair competition law (UCL) action seeking to enjoin San Francisco City Attorney Dennis Herrera from pursuing claims against it in state court, a federal judge held Dec. 16 (Monster Beverage Corp. and Monster Energy Co. v. Dennis Herrera, in his official capacity as City Attorney of San Francisco, No. 13-786, C.D. Calif.).

    $7.25B Antitrust Credit-Card-Fee Settlement Receives Final Approval

    NEW YORK - A federal judge in New York on Dec. 13 granted final approval to the $7.25 billion class action settlement between approximately 12 million merchants and Visa, MasterCard and a large number of banks that the proposed class alleges fixed the prices of interchange fees paid by merchants when customers use Visa and MasterCard credit cards (In re Payment Card Interchange Fee and Merchant Discount Antitrust Litigation $(All Cases$), No. 05-MD-1720, E.D. N.Y.).

    Nexium Direct Purchasers Granted Class Certification In Pay-For-Delay Suit

    BOSTON - A federal judge in Massachusetts on Dec. 11 certified a nationwide class of direct purchasers of Nexium on their antitrust claims contending that the manufacturer of the heartburn medication and generic drug manufacturers entered into reverse-payment agreements to keep generic versions of the medication out of the market (In re Nexium [Esomeprazole] Antitrust Litigation, No. 12-md-02409, D. Mass.; 2013 U.S. Dist. LEXIS 173353).

    Federal Judge Certifies Class Of Health Care Purchasers In Hospital Merger Case

    CHICAGO - End payers who purchased inpatient and outpatient health care services directly from NorthShore University HealthSystem and alleged that NorthShore illegally monopolized the market for such services following the merger of hospitals demonstrated that class adjudication of the antitrust claims was superior, a federal judge in Illinois ruled Dec. 10 in granting the purchasers' motion for class certification (In re: Evanston Northwestern Corporation Antitrust Litigation, No. 07-cv-04446, N.D. Ill.; 2013 U.S. Dist. LEXIS 173794).

    California Top Court Grants, Defers Briefing In Truck Employee Preemption Case

    LOS ANGELES - According to its docket, the California Supreme Court on Dec. 11 granted an employee's petition for review and deferred briefing in his class action against a trucking company pending a ruling in People v. Pac Anchor Transportation Inc. (S194388) (Salvador Rodriguez, et al. v. RWA Trucking Co. Inc., No. S214150, Calif. Sup.).

    Magistrate: 'Pure And Natural' Diapers Run Afoul Of Reasonable Consumer Standard

    SAN FRANCISCO - A reasonable consumer would expect diapers advertised as "pure and natural" to be free from non-natural materials, and the manufacturer's disclosures elsewhere on the package do not remedy the ambiguity, a federal magistrate judge held Dec. 10 in largely allowing California unfair competition law (UCL) claims to proceed (Dianna Jou, et al. v. Kimberly-Clark Corp., et al., No. 13-3075, N.D. Calif.; 2013 U.S. Dist. LEXIS 173216).

    Florida Settlement, Claim's Implausibility Bar 'Soymilk' Action, Judge Says

    SAN FRANCISCO - Settlement of a Florida action bars California unfair competition law claims involving yogurt and cane juice labeling claims, and it is "implausible" that a reasonable consumer would confuse "soymilk" for a dairy beverage, a federal judge held Dec. 10 (Alex Ang and Kevin Avoy, et al. v. Whitewave Foods Co., et al., No. 13-1953, N.D. Calif.).

    Affirmative Defenses In Tobacco Trademark Suit Struck For Lack Of Facts

    SAN FRANCISCO - A California federal judge has struck the affirmative defenses of a tobacco distributor sued for trade mark infringement, saying in a Dec. 5 opinion that the defendant had provided no factual underpinning for the defenses (Starbuzz Tobacco Inc. v. Fuad Naji Saeed, No. 3:13-cv-03837-SI, N.D. Calif.; 2013 U.S. Dist. LEXIS 171857).

    Parts Firm's Keyword Ads Trademark Claims Dismissed Against Google, Not Yahoo

    SAN DIEGO - In a pair of Dec. 4 rulings, a California federal judge dismissed all of an Internet-based automotive parts retailer's trademark infringement claims against search engine provider Google Inc. as barred by laches and precluded by the Communications Decency Act (CDA) while permitting a federal infringement claim against rival search engine provider Yahoo! Inc. to proceed (Parts.com LLC v. Google Inc., No. 3:13-cv-01074, and Parts.com LLC v. Yahoo! Inc., No. 3:13-cv-01078, S.D. Calif.).

    U.S. High Court Denies Stay Of American Airlines Merger With US Airways

    WASHINGTON, D.C. - U.S. Supreme Court Justice Ruth Bader Ginsburg on Dec. 8 denied an emergency application by individual airline customers seeking to prevent the merger of bankrupt American Airlines Inc. and US Airways Group Inc. The customers had argued that the merger violates federal antitrust laws (Carolyn Fjord v. AMR Corporation, No.13A579, U.S. Sup.).

    Airline Customers: American Airlines Merger Approval Should Be Stayed For Appeal

    NEW YORK - The class action plaintiffs that sued bankrupt AMR Corp., the parent company of American Airlines, on Dec. 4 filed a brief in the U.S. Bankruptcy Court for the Southern District of New York arguing that the Bankruptcy Court should stay its decision approving the merger of American Airlines and US Airways Group Inc. pending appeal (Carolyn Fjord, et al. v. AMR Corporation, et al. $(In Re: AMR Corporation$), no. 11-15463, Adv. No. 13-01392, Chapter 11, S.D. N.Y. Bkcy.).

    Magistrate: No Injury From Information Use, But Bandwidth Use Satisfies Standard

    SAN FRANCISCO - Google Inc.'s use of personally identifiable information (PII) does not provide Article III standing, but apps purchased through its store that utilized battery power and bandwidth sending that information do, a federal magistrate judge held Dec. 3 in also dismissing California unfair competition law (UCL) claims (In re Google Inc. privacy policy litigation, No. 12-1382, N.D. Calif.).