Legal News Article Excerpts
Autumn 2009
December 17, 2009
Lieff Cabraser's Kelly M. Dermody to Serve as BASF Treasurer
December 17, 2009, San Francisco, CA -- At its annual membership luncheon, the Bar Association of San Francisco (BASF) installed Kelly M. Dermody of Lieff Cabraser as its treasurer for 2009-10. She joins BASF President Arturo González of Morrison & Foerster LLP, along with Priya Sanger of Wells Fargo Bank Legal Department and Christopher Kearney of Keker & Van Nest LLP on the BASF executive board. Founded in 1872, BASF is a nonprofit voluntary membership organization of over 8,000 attorneys, law students and legal professionals in the Bay Area dedicated to serving the community and improving the legal profession.
December 15, 2009
Daily Journal, Judge Approves Broadcom Settlement
A federal judge in Los Angeles refused to overturn Broadcom's $118 million settlement with shareholders over stock option backdating, despite defense lawyers' arguments that it has become unfair given recent developments in parallel criminal proceedings.More...
December 15, 2009
Arizona Republic, "Apollo Group Settles Suit for $78.5 Million"
University of Phoenix parent Apollo Group Inc. will pay $78.5 million to settle a longrunning federal whistleblower lawsuit over recruiter-pay practices. "This is the second-largest settlement in a False Claims Act case where the government declined to intervene," said Lieff Cabraser attorney Rachel Geman. More...
December 14, 2009
December 14, 2009, Los Angeles, CA -- U.S. District Judge Manuel L. Real of the Central District of California granted final approval to a partial settlement in which Broadcom Corporation's insurance carriers will pay $118 million to Broadcom. The settlement releases certain individual director and officer defendants covered by Broadcom's directors' and officers' policy. The settlement does not resolve the claims against three individual defendants, William J. Ruehle, Henry T. Nicholas, III and Henry Samueli. The $118 million settlement constitutes the second largest settlement ever in a derivative action involving stock options backdating. Learn more...
December 14, 2009
$78.5 Million Settlement in Whistleblower Lawsuit Against University of Phoenix Announced
December 14, 2009, Sacramento, CA -- Lieff Cabraser attorney Robert J. Nelson announced that a False Claim Act lawsuit against the University of Phoenix settled today for $78.5 million. The lawsuit, filed by two whistleblowers on behalf of the United States, alleged that the University, the nation's largest for-profit university, had defrauded the U.S. Department of Education by obtaining federal student loan and Pell Grant monies based on false statements of compliance with the Higher Education Act. The Act prohibits universities receiving federal student aid monies from making incentive payments to recruiters based on the number of students they recruit or enroll. "The settlement is a huge victory for taxpayers and the federal government," stated Mr. Nelson. Learn more...
December 11, 2009
Five Lieff Cabraser Attorneys Featured in Super Lawyers Corporate Counsel Edition
For the 2010 January-February issue of the national Corporate Counsel Edition of Super Lawyers, five Lieff Cabraser attorneys with a high degree of peer recognition and professional achievement within corporate litigation were selected to appear. William Bernstein, Joseph R. Saveri, and Michele C. Jackson received recognition as the top attorneys in Antitrust Litigation. Lieff Cabraser managing partner Steven E. Fineman and Richard M. Heimann were recognized as top litigators in Securities law.
November 25, 2009
Federal Court Certifies Antitrust Litigation Against World's Leading Manufacturers of SRAM
U.S. District Court Judge Claudia Wilken certified a nationwide class seeking injunctive relief and twenty-seven state classes seeking damages on behalf of consumers and other indirect purchasers of SRAM, a type of memory used in many products, including smartphones and computer products. Plaintiffs allege that from November 1, 1996 through December 31, 2006, the defendant manufacturers conspired to fix and maintain artificially high prices for SRAM. Lieff Cabraser serves as one of three members of the Plaintiffs' Steering Committee for indirect purchasers of SRAM in the litigation. Read the Court's order.
November 20, 2009
Ohio Attorney General Sues National Credit Rating Agencies for False and Misleading Ratings
Ohio Attorney General Richard Cordray has filed a lawsuit against credit rating agencies Standard & Poor’s, Moody’s and Fitch. The lawsuit, filed in federal court in Ohio on behalf of five Ohio public employee retirement and pension funds, alleges the rating agencies wreaked havoc on U.S. financial markets by providing unjustified and inflated ratings of mortgage-backed securities in exchange for lucrative fees from securities issuers. Lieff Cabraser and co-counsel are assisting the Ohio Attorney General in the prosecution of the litigation. Learn more...
November 9, 2009
Kristen E. Law Participates in Roundtable on Consumer Law
In a roundtable discussion sponsored by California Lawyer magazine, Lieff Cabraser attorney Kristen E. Law discussed the impact of the 2005 Class Action Fairness Act (CAFA) and recent leading cases on consumer legal rights. In response to the question on what has been the impact of CAFA, Law responded that CAFA has depleted scarce federal judicial resources, observing, "What CAFA didn't do was statutorily increase the number of hours in the day or the number of federal judges on the bench." Read a copy of the roundtable discussion.
November 2, 2009
Daniel M. Hutchinson Joins Board of Directors of the Lawyers' Committee for Civil Rights of the San Francisco Bay Area
The Lawyers' Committee for Civil Rights of the San Francisco Bay Area (LCCR) has appointed Lieff Cabraser attorney Daniel M. Hutchinson to join its board of directors. Mr. Hutchinson is one of the youngest attorneys ever selected as a director. LCCR is a 41-year old organization that was founded in the wake of Dr. Martin Luther King Jr.'s death by the leaders of the San Francisco Bar to address the enormous civil rights challenges affecting society. LCCR has championed many of the most significant civil rights cases on the West Coast. Learn more.
October 31, 2009
Des Moines Register, "Lawsuit on overtime pay cites Wells Fargo"
A class-action lawsuit claims that Wells Fargo should have paid overtime to technical support workers. An estimated 3,000 current and former Wells Fargo employees are eligible to participate, said Jahan Sagafi, of Lieff Cabraser Heimann & Bernstein LLP of San Francisco, which represents the plaintiffs. More...
October 26, 2009
Federal Court Certifies Nationwide Class of Wells Fargo Technical Support Workers Seeking Overtime Pay
U.S. District Court Judge Claudia Wilken granted plaintiffs' motion for class certification of an overtime pay lawsuit filed by current and former Wells Fargo technical support workers. The complaint charges that Wells Fargo should have paid the employees overtime for hours worked over 40 per week. "In granting certification, the Court conditionally recognizes that these employees have similar job duties, such that addressing their claims in a single action – rather than many individual lawsuits – is appropriate," stated Kelly M. Dermody of Lieff Cabraser. Learn more...
October 23, 2009
Lawyers USA, "Despite recall, Ford faces wrongful death, injury suits"
Earlier this month Ford Motor Co. expanded its largest recall ever, adding 4.5 million vehicles equipped with faulty cruise control switches. Mark Chalos, a partner at Lieff Cabraser in Nashville, said his firm has been involved in about a dozen lawsuits alleging property damage and personal injury, as well as three deaths due to fires allegedly caused by faulty Ford speed control switches. More...
October 21, 2009
Prescribed Birth Control Drug Yaz To Treat Skin Condition, Nurse Developed Life-Threatening Blood Clots
Candice Atkinson today filed a personal injury lawsuit against Bayer Corporation for severe side effects from the prescription birth control drug Yaz, manufactured and marketed by Bayer. Atkinson, a registered nurse, charges that Yaz is a dangerous prescription drug sold without adequate warnings about the risk of serious injuries. "The FDA's adverse event database for Yaz and Yasmin reveal a very high number of serious adverse events associated with these drugs, including strokes, heart attacks, blood clot formation, gallbladder and kidney disease, and sometimes death," commented Kent L. Klaudt of Lieff Cabraser. Learn more...
October 20, 2009
Bank Customers Victimized by Alleged Abusive Bank Overdraft Fees Strike Back
October 20, 2009, Miami, FL -- Marking a substantial step forward in litigation over the banking industry's abusive and excessive overdraft fee policies and practices, bank customers have filed a series of nationwide class action lawsuits against Bank of America, Wachovia, U.S. Bank, JPMorgan Chase and Citibank. The complaints were filed in the United States District Court for the Southern District of Florida in Miami, where all federal lawsuits brought against the banking industry for abusive overdraft fees have been coordinated before the Honorable James Lawrence King. Learn more...
October 16, 2009
Lieff Cabraser Co-Sponsors Global Justice Forum at Columbia Law School
October 16, 2009, New York, NY -- The global economic crisis has triggered a cascade of financial fraud litigation, affecting investors across different countries and legal jurisdictions. Managing these cases, as well discussing the latest developments in the United States, Europe, and Asia in the fields of antitrust, mass torts, class actions, and mediation, was the subject of the sixth Global Justice Forum at Columbia Law School. Learn more...
October 13, 2009
Ford Recalls Another 4.5 Million Vehicles Due to Fire Risk
October 13, 2009, Detroit, MI -- Ford Motor Co. expanded its largest-ever recall by about 4.5 million vehicles equipped with a faulty cruise-control switch, linked to at least 550 vehicle fires nationwide and the destruction of many homes and other properties. Ford has now recalled more than 14 million vehicles in eight separate recalls over a 10-year period because of the problem. Learn more about the Ford fire recall.
October 9, 2009
National Law Journal, "$567 Million Fee Award Upheld in Fen-Phen Litigation"
A federal appeals court on Thursday rejected challenges to the $567 million attorney fee award in the fen-phen diet-drug litigation, declaring that Chief U.S. District Judge Harvey Bartle III of the Eastern District of Pennsylvania had handled the massive case properly at every step. "The amount of the award, though extraordinarily large, is not excessive in this extraordinary case," 3rd Circuit Judge Kent A. Jordan wrote. More...
October 5, 2009
Lieff Cabraser Recognized as Top Plaintiffs' Law Firm for Seventh Consecutive Year
October 5, 2009, New York, NY -- In its annual review of the top plaintiffs' law firms in the nation, The National Law Journal again selected Lieff Cabraser. The editor of the NLJ noted, "We looked for firms that struck us as representing the bar's best qualities and that demonstrated unusual flair and creativity." This marks the seventh consecutive year Lieff Cabraser has been named to the NLJ's Plaintiffs Hot List. In addition, the NLJ profiled the "braceros" litigation. Lieff Cabraser played a leading role providing justice for these laborers recruited to work in U.S. fields and factories during World War II who never received their full wages.
October 4, 2009
60 Minutes Reports on Dangers of Coal Ash and Environmental Disaster from Spill in Kingston, TN
October 4, 2009, New York, NY -- Each year, more that 130 million tons of coal ash is produced in America as the waste by-product of coal-fired electricity plants. Coal ash contains concentrations of mercury, arsenic, lead and other toxic metals. In December 2008, a giant retention pool of coal ash at the Tennessee Valley Authority coal plant in Kingston, Tennessee, broke free, creating a "black tsunami" that was 100 times larger than the Exxon Valdez spill. Click here to watch a 60 Minutes report on the dangers of coal ash and the Kingston disaster. From our Nashville office, Lieff Cabraser is representing residents affected by the disaster. Learn more about the TVA coal ash spill litigation.
October 4, 2009
The Arizona Republic, "University of Phoenix recruiter lawsuit involving pay, perks, may get closure"
Six years ago, two University of Phoenix enrollment counselors filed a lawsuit accusing the for-profit school of illegally rewarding them with fat raises and prizes based on the number of students they enrolled. The whistle-blowers are long gone. The corporate executives in charge at the time are now at different schools. But the case continues to dog the nation's largest private university. More...
Summer 2009
September 28, 2009
The Recorder, "$24M Deal in Chrysler Wrongful Death Case Approved by Bankruptcy Court"
A bankruptcy court judge on Thursday approved a $24 million settlement by Chrysler in the death of a man who was run over by a Dodge pickup truck in 2004. The plaintiffs' lawyers said Friday that their demand that Chrysler post an appeal bond after they won a $55.2 million verdict proved to be key once the automaker filed for bankruptcy in April. More...
September 24, 2009
The U.S. Bankruptcy Court overseeing the Chrysler bankruptcy proceedings today approved the payment of $24 million for the wrongful death of longshoreman Richard Mraz. The settlement is believed to be one of the largest ever of an individual wrongful death action involving an auto manufacturer. The settlement occurred while the case was on appeal from a verdict finding Chrysler's disregard of consumer safety led to the death of a Southern California father of three children. "We're gratified that the Bankruptcy Court has approved the settlement, and the action has been resolved," stated Lieff Cabraser attorney Robert J. Nelson, who served as lead trial and appellate counsel. "We hope that the new Chrysler Corporation will never put short-term profits ahead of the safety of its customers." Learn more....
September 18, 2009
Six-Year-Old Asks Congress to Restore Patient Rights
Six-year-old Avery deGroh of McHenry, Illinois and her parents have traveled to Washington, D.C. twice in 2009 to share with Congress her story and ask for passage of the Medical Device Safety Act. The bill would overturn a Supreme Court decision granting immunity to medical device manufacturers for producing faulty products. Avery received a heart device when she was two. Due to a defect, less than a year later the device malfunctioned and sent painful and terrifying electric shocks to her heart. Recently, NBC News in Chicago profiled Avery and her family, and the effort to convince Congress to enact the Medical Device Safety Act. Learn more about the Medical Device Safety Act.
September 17, 2009
Settlement Reached in Estratest Marketing Litigation
September 17, 2009, St. Paul, MN -- Solvay Pharmaceuticals has agreed to pay $16.5 million to settle plaintiffs claims for alleged deceptive marketing of Estratest and Estratest H.S. The proposed settlement, subject to approval by Judge Richard H. Kyle, would create a fund for all valid claims and purchasers can obtain partial refunds up to 30% of the purchase price paid for Estratest. In order to participate in the settlement, settlement class members must file a claim form stating their total out-of-pocket expenses for Estratest since March 8, 1998. Learn more...
September 11, 2009
Court Certifies Class In Viking Window Defects Class Action
September 11, 2009, Sacramento, CA -- Judge Frank Damrell, Jr., of the U.S. District Court for the Eastern District of California, granted class certification to all current and past owners of residential properties in California in which Viking 3000 windows made between 1991 and 1999 are installed. The plaintiffs allege that the windows contain design and manufacture defects due to improper sealant used on the lower corners of the aluminum windows, causing them to leak. Plaintiffs also allege that Viking knew or should have known that the windows would fail and nonetheless marketed the windows with a lifetime warranty. Learn more about the Viking windows lawsuit...
September 8, 2009
Joseph R. Saveri Speaks at Roundtable on Antitrust Law
September 8, 2009, San Francisco, CA -- In a roundtable discussion sponsored by California Lawyer magazine, Lieff Cabraser attorney Joseph R. Saveri discussed the impact of recent leading cases in antitrust law. Saveri observed that there is "a strong tradition" in antitrust law "emphasizing the real value that private enforcement of antitrust cases can bring not only to the litigants, but to the economy as a whole. Even with increased enforcement by the DOJ or the FTC, there's generally under-enforcement of antitrust law and the class-action device has presented an opportunity to remedy that." Read a copy of the roundtable discussion.
September 1, 2009
National Law Journal, "Broadcom Settles Stock Options Backdating Claims for $118 Million"
Broadcom Corp. has agreed to pay $118 million to settle allegations of stock options backdating, in one of the largest such deals in a derivative action to date. The proposed settlement, subject to approval by U.S. District Judge Manuel Real of the Central District of California, would be the second largest in a derivative action involving stock options backdating, according to lead plaintiffs counsel Richard Heimann, name partner at San Francisco's Lieff Cabraser Heimann & Bernstein. More...
August 31, 2009
Daily Journal, "Broadcom Agrees to Settle Backdating Case"
Irvine-based Broadcom Corp. has reached a tentative $118 million settlement with its shareholders over a derivative action over stock option backdating, including $11.5 million in fees for the plaintiffs' attorneys. It marks the one of the largest settlements in a derivative action related to stock options backdating, and may be the largest ever. More...
August 18, 2009
As Cardholder Complaints Mount, New Consumer Protection Law Becomes Effective
This week, provisions of the Credit Card Accountability, Responsibility, and Disclosure Act ("CARD") signed into law by President Obama last May become effective. Among the new rules, credit card issuers must mail their customers' statements 21 days before payments are due, a measure designed to decrease the imposition of late fees. According to media reports, in response to CARD, banks and credit card companies have been rushing to raise rates. Learn more about CARD and litigation spearheaded by Lieff Cabraser to halt illegal and deceptive business practices in the credit card industry.
August 5, 2009
Consumer Fraud Lawsuit Filed Against National Arbitration Forum
Consumers have filed a class action lawsuit against the National Arbitration Forum, Inc. ("NAF") and the nation's leading banks and credit card companies. As the largest consumer credit arbitration company in the nation, the NAF holds itself out to the public, courts and consumers as a neutral third party arbitration service. The NAF claims it is independent of the debt collection agencies and creditors that use its services. In fact, as alleged in the complaint against the NAF and the other defendants, the NAF is closely tied to the credit and debt collections industries. As a result, consumers whose cases are arbitrated through the NAF are placed at a significant disadvantage. Learn more...
August 4, 2009
Safety Risks of Yamaha Rhino Profiled on CBS News
"The public needs to be aware that already 59 people have been killed in [Yamaha Rhinos]," said Inez Tenenbaum, head of the Consumer Products Safety Commission in a report airing tonight on CBS News. "It's very high risk. This vehicle has a high center of gravity and it will turn over." CBS noted that there are no safety standards for these so-called "side-by-side" vehicles. The CBS News report featured Justin Miller, who lost his hand after a Rhino accident in May 2008. Miller stated, "the Yamaha Rhino started to rock and it tipped over on my left side, crushing my wrist." Miller is represented by Lieff Cabraser in an injury lawsuit against Yamaha. Learn more about the dangers of the Yamaha Rhino.
August 4, 2009
Senate Hearing Highlights Victim's Medical Device Nightmare, Asks Congress to Hold Manufacturer Accountable
Two years ago, Michael Mulvihill of Bettendorf, Iowa, was driving when he saw a blue light flash before his eyes. His heart defibrillator was malfunctioning and sending electrical shocks throughout his body. Mulvihill's nightmare continues because he cannot hold the manufacturer of his faulty medical device accountable due to a U.S. Supreme Court decision that gave device manufacturers complete immunity. Today, Mulvihill, a client of Lieff Cabraser, testified before a U.S. Senate Committee, asking for Congress to pass the Medical Device Safety Act (MDSA), legislation that would restore the right of patients to hold manufacturers of defective medical devices accountable. Learn more about the Medical Device Safety Act....
August 4, 2009
The National Law Journal, "Tata America Loses Bid to Force U.S. Employees Into Arbitration in Mumbai"
Foreigners working in the United States who claim they were cheated out of their tax refunds have won the right to have their employment dispute heard in American courts, defeating efforts by India's largest conglomerate to force arbitration overseas. The 9th U.S. Circuit Court of Appeals on July 31 denied a bid by Tata America International Corp. to compel arbitration and dismiss the class action that alleges Tata's non-citizen U.S. employees are required to sign over their federal and state tax refund checks to the company. Tata America and its parent corporations, Tata Consultancy Services Ltd. and Tata Sons Ltd., have argued that the dispute should be arbitrated in India rather than here, claiming the plaintiffs had entered into written agreements to arbitrate disputes in Mumbai. More...
July 30, 2009
Federal Appellate Court Denies Effort By Tata America To Force Its U.S. Workers To Arbitrate Their Employment Law Claims In India
The Ninth Circuit Court of Appeals denied the motion of Tata America International Corporation to compel arbitration in India and dismiss a nationwide class action lawsuit filed in U.S. District Court in San Francisco. Kelly M. Dermody of Lieff Cabraser stated, "The Court's ruling ensures that plaintiffs and the thousands of workers they seek to represent will have their day in court in the United States before a neutral judge knowledgeable about American labor laws, not in India in front of a private arbitrator of Tata's choosing." Plaintiffs charge that Tata failed to pay them for earned overtime and vacations and unjustly enriched itself by requiring its non-U.S.-citizen employees in America to endorse and sign over their federal and state tax refund checks to Tata. Learn more...
July 29 2009
Knoxvillebiz.com, "Report Blames TVA for Spill"
In his report on the Kingston Fossil Plant fly-ash spill issued Tuesday, TVA Inspector General Richard W. Moore found: TVA failed to make recommended safety modifications TVA failed to review management practices TVA's analysis overemphasized "slime" layer as a root cause TVA did not view ash management as a risk TVA's culture affected the way it managed ash Roane County seven months after the TVA coal ash spill. More...
July 28, 2009
Steven E. Fineman Named Vice-President of the Public Justice Foundation
The Public Justice Foundation has named Lieff Cabraser Managing Partner Steven E. Fineman its Vice-President. The Foundation's Board of Directors includes many of the nation's most distinguished and accomplished attorneys. The Public Justice Foundation is a not-for-profit, membership organization that supports Public Justice, P.C., a national public interest law firm. Public Justice, P.C., is dedicated to fighting for justice through precedent-setting and socially significant individual and class action litigation. Learn more...
July 28, 2009
TVA Schemed to Avoid Blame in Environmental Disaster, Investigation Claims
The Tennessee Valley Authority intentionally and improperly steered an outside investigation into the cause of the massive spill of coal ash at its Kingston, Tennessee plant "to intentionally avoid revealing evidence that would suggest culpability on the part of TVA" wrote Richard Moore, the TVA's Inspector General, in a report issued today. Moore added, "It appears TVA management made a conscious decision to present to the public only facts that supported an absence of liability for TVA for the Kingston spill." The report disclosed memos from the agency's files that include warnings through the years that could have prevented the spill. Learn more about the damage caused by the Kingston coal storage spill.
July 15, 2009
17 Lieff Cabraser Attorneys Honored as 2009 Northern California Super Lawyers or Rising Stars
In its annual survey of attorneys who have obtained a high degree of peer recognition and professional achievement, Law & Politics selected twelve Lieff Cabraser attorneys as Super Lawyers. The Super Lawyers are William Bernstein, Elizabeth J. Cabraser, Kelly M. Dermody, Richard M. Heimann, Barry R. Himmelstein, Michele C. Jackson, Robert L. Lieff, Robert J. Nelson, Joseph R. Saveri, and Fabrice N. Vincent. Ms. Cabraser and Ms. Dermody have also been honored as Top 100 Northern California Super Lawyers and Top 50 Female Super Lawyers. In addition, five Lieff Cabraser attorneys have been recognized as Rising Stars, attorneys who have obtained recognition and achievement, and are 40 years old or younger or in practice for ten years or less. Lieff Cabraser's Rising Stars for Northern California are Lexi J. Hazam, Daniel M. Hutchinson, Kristen E. Law, Jahan C. Sagafi, and Heather H. Wong.
July 8, 2009
Robert J. Nelson Speaks at Roundtable on Products Liability Law
In a roundtable discussion sponsored by California Lawyer magazine, Lieff Cabraser attorney Robert J. Nelson argued that the U.S. Supreme Court in Wyeth v. Levine, 129 S.Ct. 1187 (2009) "loudly and strongly affirmed the notion that preemption is a doctrine that should rarely be used, and in fact, courts should be counseled against its use." The panel reviewed other recent, notable federal and California cases in products liability law. Read the roundtable discussion here.
June 29, 2009
Janette E. Fennell, head of the consumer safety organization Kids And Cars, criticized the bankruptcy plan crafted by General Motors in consultation with the White House that strips over 300 consumers seriously hurt by defects in GM vehicles of their legal right to hold GM accountable. “Can you imagine being paralyzed or gravely injured due to a vehicle defect with no recourse? Our government is now deciding that you will have no recourse whatsoever if that catastrophic injury or death takes place in a General Motors vehicle," stated Fennell. The Obama Administration's "Auto Task-Force," which is led by the U.S. Treasury Department, is responsible for this decision. Fennell urged the public to contact the White House immediately at 202-456-1414 to insist that consumers who have been injured in car accidents, and the families of loved ones who have died, not be left unprotected under the GM bankruptcy. Contact the White House...
June 4, 2009
The Third Circuit Court of Appeals summarily denied the petition for leave by Mercedes-Benz to appeal the decision of the district court to grant class certification. Lieff Cabraser represents owners and lessees of Mercedes-Benz cars and SUVs equipped with the Tele-Aid system. The complaint charges that Mercedes-Benz violated laws against consumer fraud by promoting and selling the Tele-Aid system without disclosing to buyers of certain model years that the Tele-Aid system as installed would stop working in 2008 when cellular telephone companies switched from analog to digital technology. Mercedes-Benz is charging its customers as much as $1,500 to install a new Tele-Aid system that will work with digital technology. Learn more...
June 2, 2009
Detroit TV News Reports on Product Defect Victims in Chrysler Bankruptcy
Detroit's Local 4 News reported on the current hearings before the House Judiciary Committee regarding the abuse of bankruptcy law to circumvent justice for consumers by preventing plaintiffs from suing the restructured Chrysler company for prior defects in Chrysler vehicles. Lieff Cabraser partner Scott P. Nealey commented on how normal lawsuits can effect change by confronting a company with a jury claim. Watch the full Local 4 report here. Among those who may be affected is Farbod Nourian (represented by Lieff Cabraser), who is suing Chrysler for the injuries he suffered after a defective Chrysler Jeep shifted from park into reverse. Click here to watch video of the accident.
June 2, 2009
New York Times, "Judge Sides With Chrysler on Liability Issue"
In approving the sale of most of Chrysler's assets to a new company run by Fiat over the weekend, Judge Arthur J. Gonzalez also granted the automaker's request that the new company not be held liable for future product-liability problems involving current owners. That means people who own a Chrysler, Dodge or Jeep have lost their right to sue if they are injured by a safety defect. More...
May 23, 2009
Lawyers & Settlements, "Obsolete Emergency Response Drives Mercedes Owners to Court"
The word Mercedes kind of screams out at you – exclusive, prestigious and quality are words that quickly come to mind. However, you can also add lawsuit and consumer fraud as words now connected with the quintessential luxury automobile company. Attorney Jonathan Selbin from the New York firm of Lieff Cabraser Heimann & Bernstein has just turned the ignition on a national class action suit against Mercedes USA, alleging the car company took a lot of people for a ride when it sold them vehicles equipped with soon-to-be-obsolete analogue emergency response systems. More...
May 21, 2009
Wall Street Journal, "Medtronic List Omits Name"
U.S. Sen. Charles Grassley expressed concern that a list of consultants provided to him by Medtronic Inc. doesn't include a doctor accused of falsifying data in a favorable study of the company's Infuse bone-graft product. The medical-device maker has said surgeon Timothy Kuklo was a consultant, but his name isn't included on a list of 22 consultants provided to Sen. Grassley as part of a request for information he made in October.
Read the full article on the Wall Street Journal website.
May 21, 2009
ABC News, "Bankruptcy Battle: Chrysler Plaintiffs Say They Deserve Their Day in Court"
Farbod Nourian can't sit for long periods of time. The recent college graduate can't lift anything heavy. He suffers constant back problems. Nourian says he injured himself a year and a half ago when his cousin's 1996 Chrysler Jeep Grand Cherokee slipped from park into reverse, throwing Nourian, who was walking around the back of the car, onto a concrete garage floor. Nourian says he suffered three ruptured disks, a crushed vertebrae and internal bruising and injuries. Nourian is suing Chrysler and has a November court date. More...
Spring 2009
May 20, 2009
ABC News, "Chrysler Bankruptcy: Consumer Groups Object, Say 10 Million Vehicle Owners Will Be Left in the Lurch"
Chrysler car owners will be left in the lurch after the automaker's bankruptcy, consumer groups are charging. On Tuesday evening, a host of consumer groups, along with liability attorneys, filed an objection in bankruptcy court to the Chrysler deal. They say the way the deal is structured, the "new" Chrysler would be absolved of liability for any Chrysler car sold prior to the bankruptcy. So if you own a Chrysler vehicle and have an accident that you believe was caused by a manufacturing defect, you would be out of luck. You could not sue Chrysler for damages, they say. More...
May 11, 2009
EPA Takes Over TVA Coal Ash Spill Clean Up
The U.S. Environmental Protection Agency has officially taken over efforts to clean up the massive coal ash spill from the Tennessee Valley Authority's Kingston Fossil Plant that occurred in December 2008. "Given that TVA was unable to prevent the disaster in the first place, the clients we represent feel it's a good thing that they will not oversee the cleanup going forward that requires such care and attention to detail to prevent any further contamination," says Elizabeth Alexander, a Lieff Cabraser attorney leading the class action lawsuit against TVA. Learn more...
May 2009
ABA Journal, "Spate of lawsuits forces change in not-for-profit hospital billing"
[S]ince [federal judges were unreceptive to uninsured patient' lawsuits for unfair higher prices], many plaintiffs have found their way to state court. There, with friendlier state consumer-fraud statutes, lawyers reached settlements with leading nonprofit hospital systems in more than half a dozen states. Among them are California, Missouri and, most recently, Illinois -- where suits against two major Chicago-area hospital systems settled earlier this year. More...
April 14, 2009
Company Fined in Children's Magnetic Toy Recall
The Consumer Product Safety Commission announced that Mega Brands America Inc., of Livingston, N.J., formerly Rose Art Industries Inc., will pay a $1.1 million civil penalty to settle allegations that Mega Brands America and Rose Art failed to provide the CPSC timely information about the dangers to children of Magnetix magnetic building sets. The company's magnetic toys have been recalled three times over the course of several years. Lieff Cabraser represents parents whose children were injured by detached magnets from Magnetix toys. Learn more...
April 14, 2009
Daily Journal, "Magnetix Magnetic Toys' Legal Troubles Mount"
Although MEGA Brands has twice recalled its popular Magnetix magnetic toys after numerous lawsuits, plaintiffs' attorneys said parents are still suing the company over swallowed magnets. Today, federal regulators will join the fray by making an announcement about the toys, which were blamed for the 2005 death of a 2-year-old. More...
April 11, 2009
The Tennessean (Nashville, Tennessee), "TVA buys 70 properties near site of coal ash spill"
TVA has bought more than 70 properties near the Kingston plant where the coal ash spill happened in December, the agency announced Friday. About $20 million was paid for the total of about 225 acres bought, TVA spokesman Gil Francis said. The purchases run from less than one-quarter acre in size to more than 20 acres. Those just outside the immediate spill area who are asking for help are still in limbo, according to an attorney for several of them. More...
April 2, 2009
Medical Device Safety Act Receiving Broad Support
The National Law Journal reports that more than 20 consumer, health, women's advocacy and legal groups, including the American Bar Association, have sent letters to Congress urging passage of the Medical Device Safety Act. The bill would overturn a 2008 U.S. Supreme Court decision which provided immunity for medical device manufacturers. Earlier, the editors of The New England Journal of Medicine endorsed the bill, observing that “lawsuits by injured patients ... have been an important part of the regulatory framework and very effective in keeping medical devices safe.” Learn more about the Medical Device Safety Act at stopcorporateimmunity.org.
March 31, 2009
Yamaha Motor Corp. Announces Repair Program for 120,000 Rhino Vehicles; CPSC Advises Consumers to Immediately Stop Use
March 31, 2009, Washington, D.C. -- The U.S. Consumer Product Safety Commission ("CPSC"), in cooperation with Yamaha Motor Corp. U.S.A., of Cypress, Calif., has announced a repair program for all Rhino 450, 660, and 700 model recreational vehicles to address rollover safety defects which have killed at least 46 and injured hundreds of others in the U.S. Yamaha will suspend sale of these models immediately until they have been retrofitted. Consumers should immediately stop using these popular recreational vehicles until the free repairs are installed by a dealer. In conjunction with a group of the families of victims, the Center for Auto Safety, and the San Francisco Trauma Foundation, Lieff Cabraser advocated for these and additional safety changes in a February 2009 safety report submitted to the CPSC. Learn more...
March 25, 2009
Judge Says Court Order to Preserve Evidence 'Clear' in TVA Case
After hearing arguments from the TVA to cancel the previous order to preserve voicemails related to the Dec. 22, 2008 TVA coal fly ash spill, United States Magistrate Judge Bruce Guyton stated that the Court's order to preserve evidence, which "included voice mails specifically,
was clear.” Attorney Elizabeth Alexander argued the agency should have been
safeguarding potential evidence from the moment of the spill. "From the get-go it appears TVA wasn’t complying with its duty to preserve evidence,” Alexander said. Judge Guyton will issue a written ruling soon. Learn more about the TVA coal spill.
March 25, 2009
Knoxville News Sentinel, "Judge says voice mail evidence preservation order clear; TVA blames antiquated system blamed for lost messages"
An agency accused in a Kingston coal ash avalanche insisted Tuesday it is facing another catastrophe -- a crash of its voice-mail system. "This is a situation where the cost of preserving voice mails … is horrible for TVA because it threatens to bring down these five (voice-mail) systems," attorney Amor A. Esteban argued at a hearing before U.S. Magistrate Judge Bruce Guyton on Tuesday. "The likelihood of finding something that is relevant, that's unique, compared to the cost of bringing down the system is unfair." More...
March 24, 2009
MSNBC, "Oil plagues Sound 20 years after Valdez; Future risk assessments must look at longer impacts, recovery council says"
Twenty years after the Exxon Valdez spilled 11 million gallons of crude oil in Alaska's Prince William Sound, oil persists in the region and, in some places, "is nearly as toxic as it was the first few weeks after the spill," according to the council overseeing restoration efforts. "This Exxon Valdez oil is decreasing at a rate of 0-4 percent per year," the Exxon Valdez Oil Spill Trustee Council stated in a report marking Tuesday's 20th anniversary of the worst oil spill in U.S. waters. "At this rate, the remaining oil will take decades and possibly centuries to disappear entirely." More...
Winter 2008-2009
March 4, 2009
Supreme Court Reaffirms Right of Patients Harmed By Dangerous Prescription Drugs to Hold Manufacturers Accountable Under State Tort Laws
In a 6-3 decision in Wyeth v. Levine, the U.S. Supreme Court rejected the claim by drug manufacturer Wyeth that approval of a drug by the Food and Drug Administration provides pharmaceutical companies complete immunity from any claims of negligence. The Court emphasized the important role damage suits play in protecting the public: "The FDA has limited resources to monitor the 11,000 drugs on the market, and manufacturers have superior access to information about their drugs, especially in the postmarketing phase as new risks emerge. State tort suits uncover unknown drug hazards and provide incentives for drug manufacturers to disclose safety risks promptly. They also serve a distinct compensatory function that may motivate injured persons to come forward with information." Read the Wyeth v. Levine opinion.
March 3, 2009
Court Denies Motions to Dismiss LCD Antitrust Class Action
In class action litigation against the world's leading manufacturers of LCD flat-panel TV screens, monitors, and other products incorporating liquid crystal displays (LCDs), U.S. District Court Judge Susan Illston denied defendants' motions to dismiss direct purchaser plaintiffs' First Amended Consolidated Complaint. The Court found the amended complaint included detail about "numerous illicit conspiratorial communications between and among defendants," as well as the facts of guilty pleas entered by several defendants for fixing prices of LCDs. Further, "[t]he complaints allege that group or 'crystal' meetings were attended by employees at three general levels of defendants' corporations, and contains details about the structure and content of these meetings, as well as the types of employees who attended the meetings." Read more...
February 26, 2009
Victims and Consumer Safety Advocates Issue Report on Safety Hazards of Utility Terrain Vehicles
The safety defects of some Utility Terrain Vehicles (UTVs), and in particular the Yamaha Rhino, are causing a mounting toll of death and severe injury to users, warns a report issued today by a group of safety advocates and victims. The report calls for basic changes in the design of these rollover-prone off-road vehicles to substantially increase their ability to protect occupants in the event of rollover accidents. The report, entitled "Citizen Report on UTV Vehicle Hazards," has been submitted by victims of UTV rollovers, including the parents of children killed or injured in such accidents, as well as adult victims, the Trauma Foundation, and the Center for Auto Safety. Learn more...
February 23, 2009
WWII Era Braceros Win Access to Lost Wages
U.S. District Court Judge Charles Breyer granted final approval to a class action settlement providing Mexican farm workers and laborers compensation for funds withheld from their paychecks for work they performed during World War II. The settlement was reached between the Mexican government and the workers, known as braceros, who came to the U.S. to work under a series of international treaties between the U.S. and Mexican governments. "The braceros played a vital role in maintaining our economy and agricultural production during World War II," stated class co-counsel Kelly Dermody of Lieff Cabraser. "The Court's approval of the settlement vindicates the long struggle for justice of the braceros and their families." Learn more...
February 3, 2009
Canadian Court Certifies National Class Action in Dell Notebook Case
Justice Joan Lax of the Ontario Superior Court of Justice certified a national class action on behalf of Canadians who own certain Dell Inspiron notebooks. The plaintiffs charge that Dell Canada Inc. has sold 120,000 Canadian consumers defective notebooks. Joel P. Rochon of Rochon Genova LLP stated, "This decision protects the rights of Canadians to seek compensation through a class action for defective goods even in the face of an arbitration clause." Lieff Cabraser Heimann & Bernstein, LLP, is affiliated with Rochon Genova. Learn more about the Dell Canada case.
January 23, 2009
AP, "TVA memo spins environmental impact of Kingston coal ash disaster"
The massive coal ash spill at a Tennessee Valley Authority power plant last month wasn't so much "catastrophic" as it was a "sudden, accidental release." That's according to a memo obtained by The Associated Press that was prepared by TVA's 50-member public relations staff for briefing news media the day after the disaster at the Kingston Fossil Plant, about 40 miles west of Knoxville. The nation's largest public utility has been accused by environmentalists and affected residents of soft-pedaling the seriousness of the flood of toxin-laden ash that filled inlets of the Emory River and swept away or damaged lakeside homes. More...
January 22, 2009
Law360 (New York), "Surge In FLSA Suits Not Expected To End Soon"
Management-side employment lawyers point to gray areas in the Fair Labor Standards Act and the low threshold for winning conditional certification in collective actions as two reasons why the FLSA litigation boom refuses to die, but plaintiffs lawyers say the law lacks the teeth to give employers an economic incentive to comply. Management-side and plaintiffs employment lawyers don't agree on much, but attorneys in both camps say the volume of new FLSA suits will continue to swell. More...
January 20, 2009
Law360 (New York), "Homeowner Class OK'd In WR Grace Zonolite Asbestos Suit"
A bankruptcy judge has preliminarily approved a class of some 16,000 homeowners who sued W.R. Grace & Co. over exposure to asbestos fibers in the bankrupt home materials maker's Zonolite attic insulation. Judge Judith K. Fitzgerald ruled Friday in the U.S. Bankruptcy Court for the District of Delaware that the proposed settlement, reached in November, is reasonable and should be submitted to class members for comment. A final approval hearing on the matter is set for April 1. More...
January 16, 2009
Legal Groups Charge Proposition 8 Violates California Constitution's Guarantee of Equal Protection
January 16, 2009, San Francisco, CA -- A state ballot measure that changes the California Constitution to deny same sex couples the right to marry violates the document's guarantee of equal protection, 40 bar and legal organizations argued in an amicus brief in the marriage cases before the California Supreme Court. The San Francisco and Los Angeles County bar associations were among the bar and legal organizations that submitted the brief. "Proposition 8 creates the dangerous precedent that the legal and civil rights of minorities, indeed, of any individual or group, could be excised from the California Constitution and the courts would be powerless to reverse such discrimination," stated Elizabeth J. Cabraser of Lieff Cabraser Heimann & Bernstein, LLP, counsel for amici. Learn more...
January 14, 2009
Knoxvillebiz.com, "EPA nominee: Fly-ash regs need to be reviewed"
Two Roane County families sued TVA on Friday in U.S. District Court seeking to force the agency to monitor their health in the wake of the Dec. 22 coal fly ash spill from a retention pond at the Kingston fossil plant. The suit was filed Friday in federal court. The suit names several members of the Giltnane family of Kingston and Rockwood as plaintiffs as well as Ian and Sabrina Cullen of Kingston. More...
January 12, 2009
American Association For Justice Asks New Administration To Reverse Bush "Complete Immunity" Regulations
January 12, 2009, Washington, D.C. -- The American Association for Justice (AAJ) called upon the incoming Obama administration to reverse regulations adopted by the Bush Administration that have given complete immunity to negligent corporations and "preempted" the right of Americans to hold wrongdoers accountable through the civil justice system. To date, seven agencies have issued over 54 regulations with language in the preamble to preempt state tort claims, many times without adhering to notice and comment procedures and directly contrary to Congressional intent. "We look forward to the Obama administration reaffirming the importance of a civil justice system that complements strong regulations," said AAJ Senior Vice President for Public Affairs Linda Lipsen. Learn more...
January 12, 2009
The Giltnane family of Kingston and Rockwood, Tennessee, filed a lawsuit against the Tennessee Valley Authority (TVA) seeking medical monitoring of their families and other families after potential exposure to 1.1 billion gallons of toxic coal ash released when the containment pond failed at the TVA's Kingston Fossil Plant. "This disaster has negatively impacted the residential community and fouled the scenic waterways in the Kingston area, which are a central part of life in the area," stated Elizabeth Alexander, a partner in Lieff Cabraser's Nashville office. "The TVA should account for all the harm it caused by the massive amount of toxic material that spilled." Learn more about the TVA coal spill.
January 10, 2009
The Tennessean, "UPDATE: Second TVA spill reported in Alabama"
TVA is investigating a leak from a gypsum pond at its Widows Creek coal-burning power plant in northeastern Alabama, a spokesman said at about 10:45 a.m. Central Time. The leak, discovered before 6 a.m. has been stopped, according to John Moulton, with the Tennessee Valley Authority. "Some materials flowed into Widows Creek, although most of the leakage remained in the settling pond," he said. More...
January 8, 2009
MSNBC.com, "Senator: Tennessee's Kingston Ash spill shows need for rules"
The federal government, and particularly the Environmental Protection Agency, must adopt standards to prevent future toxic ash spills like the recent billion-gallon disaster in Tennessee, a key Senate Democrat said Thursday. "We need to have standards in place to make certain that coal ash is managed, and disposed of properly," Sen. Barbara Boxer, D-Calif., said at the start of a hearing into the Tennessee spill last month. Some 1,300 containment ponds similar to the one in Tennessee exist across the country, but none are regulated by the federal EPA. When a dike broke Dec. 22 at the Kingston Fossil Plant, some 1.1 billion gallons of sludge was released from a 40-acre settlement pond, blanketing nearly 300 acres in a rural neighborhood up to 9 feet deep in grayish muck and spilling into the Emory River threatening drinking water. More...
January 5, 2009
Lawyers USA, "Suits over AMO contact lens solution move forward"
About 150 lawsuits are moving forward alleging that Complete MoisturePlus contact lens solution causes a nasty eye infection that can require corneal transplants and in some cases result in blindness. The majority of cases have been filed in a coordinated proceeding in state court in Orange County, Calif., where defendants Allergan and Advanced Medical Optics Inc. are headquartered. In one of the first bellweather cases, scheduled for trial on May 4, 2009, 34 year-old plaintiff Kellie Bataglia is alleging that she contracted an acanthamoeba keratitis infection after using the all-in-one Complete MoisturePlus product. More...
January 5, 2009
U.S. District Court Judge Richard H. Kyle found that under the Medical Device Amendments to the Federal Food, Drug and Cosmetic Act, the Food and Drug Administration has exclusive authority to make all decisions as to the safety and effectiveness of medical devices. The Court concluded that Medtronic, Inc., is completely shielded from having to account for severe injuries suffered by patients who received its Sprint Fidelis heart lead, and dismissed all actions against Medtronic. Plaintiffs' Counsel believe the Court erroneously interpreted federal law and intend to file a motion for reconsideration and seek other relief. Learn more about the Medtronic heart lead recall.
January 3, 2009
The Tennessean, "Spilled Kingston coal ash carries poisons in East Tennessee"
The massive coal ash spill in East Tennessee is laced with unhealthy amounts of arsenic, antimony, lead and a brew of other toxic materials and heavy metals, tests show. The Environmental Protection Agency has released results from the first round of tests on the sludge that spilled across 300 acres of Roane County on Dec. 22. The ash that burst out of a retaining pit at the Tennessee Valley Authority's Kingston coal-fired plant spilled five decades' worth of coal dust and chemicals into homes, yards and the local ecosystem. More...
January 1, 2009
Lieff Cabraser Announces New Partners
Lieff Cabraser is proud to announce three new partners with the firm: Jennifer Gross, Lexi J. Hazam and Kent L. Klaudt. Jennifer Gross practices in the areas of Consumer Protection, Mass Tort, Securities and Financial Fraud, and Antitrust litigation in our New York office. At our San Francisco office, Lexi J. Hazam's practice includes Mass Torts, International & Civil Rights Law, and Aviation, while Kent Klaudt's practice areas include Consumer Protection, International & Human Rights, Personal Injury and Product Liability.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP is a sixty-plus attorney law firm that has represented plaintiffs nationwide since 1972. We have offices in San Francisco, New York and Nashville. We represent plaintiffs in class and group actions and in individual lawsuits in cases involving substantial losses. For the last seven years, The National Law Journal has selected Lieff Cabraser as one of the top plaintiffs' law firms in the nation.
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