Roughly 240 days from now, banks and other financial companies will no longer be allowed to prohibit customers from banding together in class-action lawsuits through the use of binding arbitration clauses, as the Consumer Financial Protection Bureau today released a long-awaited finalized rule on arbitration. [More]
class action lawsuits
CFPB’s Finalized Arbitration Rule Takes Away Banks’ ‘Get Out Of Jail Free Card’
By 7.10.17 — Updated: 7.11.17
Consumers Suing Welspun Over Egyptian Cotton Bedding Made With Inferior Materials
By 9.15.16
There’s more bad news for textile manufacturer Welpsun: after Target cut ties with the company, and Walmart pulled its sheets from shelves, U.S. consumers have filed two lawsuits claiming the textile manufacturer fraudulently labeled its bedding as premium Egyptian cotton when it was in fact made from lower quality fibers. [More]
Starbucks Will Have To Face Lawsuit Over Underfilled Lattes
By 6.20.16
A judge has rejected Starbucks’ efforts to put the kibosh on a lawsuit filed by two customers who claim that the coffee chain routinely underfills lattes. [More]
Uber Drivers Are Independent Contractors, Will Receive Up To $100M In Settlement
By 4.22.16
For the better part of three years, Uber drivers have sparred with the ride-sharing company over the status of their employment: are they independent contractor or actual employees? Today, Uber has agreed to settle two lawsuits over the issue, paying up to $100 million to the drivers who will remain independent contractors. [More]
Starbucks Customers Suing Over Allegedly Skimpy Latte Servings
By 3.18.16
It can be tough when you don’t get enough coffee in the morning — you’re tired and cranky all day, your coworkers hide from your scorching gaze, etc. — and you have no one to blame but yourself for not getting more caffeine. Some Starbucks customers are blaming their lack of coffee on the company, claiming in a class action lawsuit that the chain consistently underfills its lattes. [More]
Whole Foods Asks Judge To Put The Kibosh On Lawsuit Over “Natural” Label On Baked Goods
By 3.11.16
When it comes to products with labels reading “all natural,” are you willing to pay more than you would otherwise? Whole Foods customers who have filed lawsuits against the grocery chain said they paid a premium price for baked goods that were falsely labeled as natural, as they actually contained synthetic ingredients. [More]
Anthem Blue Cross Will Pay $8.3M To Customers To Settle Class-Action Suit Over Mid-Year Policy Changes
By 10.27.15
When you sign up for an insurance policy, you’re given a price for that plan for the year. So when California consumers discovered changes to their Anthem Blue Cross policies in the middle of the year that came with extra out-of-pocket costs, two policyholders filed a class-action lawsuit against the insurance provider in 2011. Anthem Blue Cross has now agreed to a settlement that includes reimbursing about 50,000 customers in California almost $8.3 million. [More]
The Uber Misclassified Employee Lawsuit Is Now A California Class Action
By 9.2.15
While class action lawsuits can be an effective consumer remedy, they are not a quick one. Former drivers for ride-hailing service Uber first filed a class action on behalf of all California drivers in 2013, and it has just now been certified as a class action. The original lawsuit alleges that drivers for Uber are misclassified employees, who should have their vehicle expenses covered by their “employer,” Uber. [More]
Judge Denies Class-Action Status For Lawsuit Filed By Former iPhone User Over Lost Texts
By 8.5.15
A former iPhone user who sued Apple last May claiming she lost text messages when she switched to an Android phone won’t be able to get class-action status for her lawsuit. [More]
Lawsuit Against Jim Beam Challenges Bourbon’s “Handcrafted” Claim
By 2.19.15
When it comes to making a name for a brand, the words companies use to describe their products are chosen very carefully for maximum appeal. But the thing is, those words have to be true. Jim Beam is the latest liquor maker to face challenges over its claims that its bourbon is actually “handcrafted.” [More]
Takata, Honda Subjects Of Class-Action Lawsuit Over Alleged Secret Airbag Tests, Destroyed Documents
By 11.11.14
It was only a matter of time before Takata, the company responsible for the deadly airbag defect that resulted in nearly 16 million vehicles being recalled, faced a lawsuit regarding the company’s allegedly hidden tests of defective airbags and the years-long coverup that ensued. [More]
Whirlpool Threatens To Leave Energy Star Program If Class-Action Suits Continue
By 7.21.14
When consumers purchase a big-ticket item with hopes that it will make their home more energy-efficient, and the product doesn’t live up to its promises, should there be an option for redress? Newly introduced legislation essentially says “no.” Oh, and if that bill doesn’t pass, one manufacturer say it will say “so long” to the Energy Star program all together. [More]
General Mills’ New Policy: If You Engage With Us Online, You Can Never Sue The Company
By 4.17.14
Companies want customers to engage with them online as if they’re just another pal on Facebook or Twitter, one that can offer downloadable coupons and promote contests with attractive prizes. But in new language recently added to General Mills’ website, consumers who interact with the company online will be agreeing to give up the right to sue the company in the future. [More]
Supreme Court Won’t Stop Class-Action Lawsuits Over Front-Loading Washing Machines
By 2.24.14
After several years of shutting down class-action lawsuits or affirming businesses’ ability to preempt such suits with forced arbitration, the U.S. Supreme Court today chose not to hear challenges to a trio of class actions about supposedly defective washing machines from three leading manufacturers. [More]
FedEx Employee Says Company Knew It Was Overcharging Customers, Didn’t Care
By 12.12.12
As part of a class action lawsuit alleging that FedEx has been overcharging its business and government customers for years, an unsealed email from an employee claims that not only did the company know it was doing so, it even overcharged itself for sending packages to its own headquarters. Go on, shake your head in disbelief. [More]
Video Game Publisher/Seller Valve Now Forcing Customers Into Mandatory Binding Arbitration
By 8.1.12
Valve, the makers of popular video game series like Portal, Left 4 Dead, Half-Life, and Team Fortress, as well as the operators of the Steam online marketplace for games, have surprised fans this week by changing the Steam terms of service to effectively pre-empt any class-action lawsuits by forcing customers into mandatory binding arbitration. [More]
Turns Out That Forcing Customers Into Arbitration Is Not Good For Consumers
By 4.25.12
A year ago this week, the U.S. Supreme Court issued a landmark ruling in the AT&T Mobility v. Concepcion case. It decided that a company could force customers into arbitration — and effectively pre-empt any class-action lawsuits — by including a tiny clause in their contracts. At the time, AT&T had the gall to claim that this was all for the benefit of you, the consumer, but a new study proves what you probably already guessed: AT&T was full of it. [More]
Apple Replaces Frayed Magsafe Adapter Cables For Free
By 11.9.11
Apple will replace or refund out-of-warranty frayed Magsafe adapters, according to the terms of proposed class action lawsuit settlement. [More]
