Archive for class-action suit

Judge Dismisses Wells Fargo Class-action Lawsuit

A federal judge in California dismissed a class-action lawsuit brought against Wells Fargo by its shareholders. The plaintiffs claimed they had been defrauded when they bought Wells Fargo stock from Jan 1, 2012, through Aug 3, 2016. They sued the bank for misleading its shareholders about its deteriorating loan performance — and because it halted dividend payments during that same period. The investors in question were demanding a payout of $1 billion. The judge felt there was no evidence that anyone else had purchased stock during those three years and therefore dismissed the case with prejudice.

Wells Fargo Has Been Dealing with a $185 Million Fake Account Scandal

The bank has been fighting against a class-action lawsuit, which alleges that the company’s staff opened millions of fake accounts in customers’ names without their consent or knowledge.

Wells Fargo has admitted that it created millions of fake accounts but claims it did not intend to do so. On Friday, the bank announced that it would be dismissing the case filed by a dozen customers who claimed they were victims of fraud by Wells Fargo employees.

The reason? The judge decided that because these customers signed up for online banking services, they consented to have their information shared with Wells Fargo’s internal fraud department.

Judge Said Wells Fargo Customers Would Have to Take Their Case to Arbitration

In a decision that could have wide-ranging implications for other companies, U.S. District Judge William Alsup on Tuesday dismissed a class-action lawsuit against Wells Fargo, alleging that the bank used illegal sales practices to boost its financial results.

The ruling means that customers harmed by Wells Fargo’s alleged practices will not be able to pursue their claims in court. Instead, they will have to take their case to arbitration — a process that is less costly than going through the courts and which many consumers are unaware even exists.

Bottom Line

Even though the legal battle is far from over, this dismissal is good news for Wells Fargo. It means the judge agrees with Wells Fargo’s argument that the court does not have jurisdiction to hear its claims because Wells Fargo has fallen short of the minimum number of defendants required. But even if Wells Fargo is ultimately successful, it will have to re-file its lawsuit–and in some ways, its strategy going forward may have to change.

Popular Toy Maker Embroiled In Class-Action Suit Over Infant Deaths

Fisher-Price Infant Sleeper Allegedly Causes Over 30 Infant Deaths

Fisher-Price, one of the biggest toy makers in the world, is currently tied up in class-action lawsuits related to their Rock’n’Play infant sleeper. The lawsuits allege that this product is responsible for more than 30 infant deaths. Fisher-Price has recalled 4.7 million infant sleepers as the company strives to deal with the issue. The recall notice was posted on the company’s website on April 12th and calls for parents to return the sleepers immediately for a refund or voucher. Both of the lawsuits filed recently allege that Fisher-Price was long aware of the potential dangers of its product, but refused to announce a recall.

2 Recent Class-Action Suits

There have been 2 class-action suits filed recently in regard to Fisher-Price’s infant sleepers. The first was filed in the U.S. District Court in Buffalo by Samantha Drover-Mundy and Zachary Mundy. The second was filed by Cassandra Mulvey, also in Buffalo’s U.S. District Court. Both lawsuits seek unspecified damages and both suits attempt to create 2 different classes of claimants – one for New York plaintiffs, and the other for plaintiffs elsewhere in the country.

The Drover-Mundy suit in particular claims that Fisher-Price and Mattel put out a dangerous product that was flawed from the initial design phase. According to the suit, the manufacturer did not adhere to established safety standards when designing the Rock’n’Play sleeper. Allegedly, Fisher-Price then continued to market and sell the product, even as reports of infant injuries and deaths came pouring in. The sort of injuries that infants allegedly suffered from the Rock’n’Play product include asphyxiation, flat head syndrome and twisted neck syndrome. As previously mentioned, the Fisher-Price sleeper is also implicated in over 30 infant deaths since 2009.

Different Classes Of Claimants

In addition to the different classes of claimants based on location, the Drover-Mundy suit seeks to establish 2 further classes of claimants. The suit looks to create separate classes for infants that were allegedly injured by the Fisher-Price product and for families that purchased these products. The Drover-Mundy suit and the Mulvey suit will both be heard in the U.S. District Court in Buffalo, where a judge will rule on the attempts to establish different classes of claimants.