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Category Archives: U.S. Supreme Court

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Supreme Court May Clarify Procedures For Removal Under CAFA—If It Decides To Answer The Question Presented in Dart Cherokee Basin Operating Co. v. Owens

Posted in CAFA, U.S. Supreme Court

This morning I attended oral arguments at the Supreme Court in Dart Cherokee Basin Operating Co. v. Owens.  The issue presented in Dart Cherokee is whether a defendant who wishes to remove a case to federal court under the Class Action Fairness Act (CAFA) is required to submit evidence supporting federal jurisdiction along with the… Continue Reading

ERISA Stock-Drop Class Actions: As One Door Opens for Plaintiffs, Another Closes

Posted in Employment, Securities, U.S. Supreme Court

In ERISA stock-drop class actions, plaintiffs routinely allege that their employers breached a duty of prudence by permitting employees to invest their retirement assets in their company’s stock.  Until today, defendants typically defended against such claims by invoking a judicially crafted presumption that offering company stock was prudent.  Today, in Fifth Third Bancorp v. Dudenhoeffer,… Continue Reading

Why The Supreme Court’s Decision in Halliburton Is Bad News For Investors And The Public

Posted in Class Certification, Securities, U.S. Supreme Court

Yesterday’s Supreme Court ruling in the Halliburton case leaves the securities class action system pretty much unchanged. And that isn’t because the Supreme Court examined the system and concluded it is working well and makes sense.  Instead,  the Court simply didn’t address those questions. That’s very good news for the lawyers who make their living… Continue Reading

Supreme Court Refuses To Overturn Fraud-On-The-Market Presumption, But Adjusts Presumption To Allow Evidence of Absence Of “Price Impact” At Class Certification Stage

Posted in Class Certification, Predominance, Securities, U.S. Supreme Court

The securities class action industry was launched a quarter-century ago when the Supreme Court recognized the so-called “fraud-on-the-market” presumption of reliance in most putative securities class actions.  The result has been that—despite Congressional efforts at securities litigation reform—most securities class actions that survive the pleadings stage are likely to achieve class certification, forcing defendants to… Continue Reading

POM v. Coke Does Not Alter The Landscape for Food False Advertising Class Actions

Posted in Class Action Trends, U.S. Supreme Court

After the oral argument in POM Wonderful LLC v. Coca-Cola Co. (pdf), No. 12-761, the Supreme Court appeared all but certain to allow competitors to sue for false advertising under the Lanham Act over labels of FDA-regulated food products.  Food manufactures have been waiting to see just how broad the ruling would be and whether it… Continue Reading

Are You Objecting to Personal Jurisdiction In Magnet Jurisdictions Yet?

Posted in Motions Practice, U.S. Supreme Court

Until recently, many large companies have resigned themselves to the assertion of personal jurisdiction by courts in any state in which they do business—so long as the plaintiff has named the right corporate entity as defendant. That’s because the conventional wisdom has been that large companies are subject to personal jurisdiction nationwide because they do… Continue Reading

Supreme Court to Decide Whether All Evidence Supporting Removal Under the Class Action Fairness Act Must Be Submitted With The Notice of Removal

Posted in CAFA, U.S. Supreme Court

To remove a civil action from state court to federal court, the defendant must “file … a notice of removal … containing a short and plain statement of the grounds for removal.” 28 U.S.C. § 1446(a). Today, the Supreme Court granted certiorari in Dart Cherokee Basin Operating Co. v. Owens, No. 13-719, to decide whether… Continue Reading

Supreme Court Will Decide Whether Filing A Class Action Tolls Statute of Repose Under Federal Securities Laws

Posted in Securities, U.S. Supreme Court

Last year, we reported on the Second Circuit’s ruling in Police & Fire Retirement System of City of Detroit v. IndyMac MBS, Inc. (pdf), 721 F.3d 95 (2d Cir. 2013), that the filing of a class action does not toll the statute of repose in the Securities Act of 1933 for would-be class members who… Continue Reading

Reading the Halliburton Argument’s Tea Leaves

Posted in Securities, U.S. Supreme Court

Does today’s oral argument before the Supreme Court in the Halliburton case provide any clues regarding the Court’s likely decision?  (For background regarding the case, see yesterday’s post.) Not necessarily. “Court-watchers” are often quick to predict a case’s outcome based on the argument—and are very often wrong.  Remember the health care law that was certain… Continue Reading

Does Precedent or Congressional Action Prevent the Supreme Court from Reconsidering the Fraud-on-the Market Doctrine in Halliburton?

Posted in Securities, U.S. Supreme Court

The Supreme Court will grapple with private securities class actions when it hears oral argument tomorrow in Halliburton v. Erica P. John Fund, Inc. The principal question in the case is the continuing validity of the fraud-on-the-market doctrine, endorsed by the Court twenty-five years ago in Basic Inc. v. Levinson, which relieves plaintiffs asserting claims under… Continue Reading

Supreme Court to Decide Whether Fair Labor Standards Act Requires Compensating Employees for End-of-Shift Security Screenings

Posted in Employment, U.S. Supreme Court

The Supreme Court makes its biggest headlines when it wades into the biggest issues of the day. But the Supreme Court also maintains a substantial docket of seemingly small—but ultimately important—technical questions. In recent years, the Court has been particularly interested in defining precisely when an hourly employee is on and off the clock. For… Continue Reading

Cert Petition Asks Supreme Court To Decide Whether Congress Can Allow Uninjured Plaintiffs To Sue In Federal Court

Posted in U.S. Supreme Court

For years, defendants have argued that federal courts may not entertain class-action lawsuits when the plaintiff does not allege that he or she suffered any concrete personal harm and instead relies solely on an “injury in law” based on an alleged exposure to a technical violation of a federal statute. As we (and others) have… Continue Reading

Do Employers Have To Pay Unionized Workers For Time Spent Donning and Doffing Safety Gear? Supreme Court Says No.

Posted in Employment, U.S. Supreme Court

In recent years, one of the hottest types of collective actions against employers under the Fair Labor Standards Act (“FLSA”) is what is commonly called a “donning and doffing claim”—a lawsuit for unpaid wages for time employees spent changing clothes for work, such as putting on uniforms, safety gear, and the like. In a recent… Continue Reading

Supreme Court Holds that CAFA Doesn’t Let Defendants Remove State AG Actions to Federal Court

Posted in CAFA, Class Action Trends, U.S. Supreme Court

When state attorneys general file suits to seek monetary recoveries based on claimed injuries to private citizens, those lawsuits look like, walk like, and quack like class actions. In fact, in most of these so-called “parens patriae” cases, the same private plaintiffs’ lawyers that bring private class actions are retained to represent states in exchange… Continue Reading

Two Washer Cases Provide the Supreme Court with Its Best Opportunity Since Wal-Mart v. Dukes to Make Sense of Class-Certification Standards

Posted in Class Certification, Commonality, Predominance, U.S. Supreme Court

At its conference on January 10, the Supreme Court can get serious about fixing consumer class actions. The Justices should take up that challenge, because it will consider two certiorari petitions that seek review of class certifications—involving alleged “moldy odors” in high-tech front loading washing machines—that are prime examples of what has gone wrong with… Continue Reading

Supreme Court Picks Up ERISA Stock-Drop Case: What’s Next?

Posted in Motions Practice, Securities, U.S. Supreme Court

In what circumstances should you be permitted to invest your retirement savings in your own employer’s stock? We have blogged before about an ERISA class action pending at the Supreme Court regarding when plan fiduciaries must prevent participants from investing in employer stock. After the Solicitor General filed an amicus brief (pdf) asking the Court… Continue Reading

Video Interview: Discussing Class Actions in the Supreme Court with LXBN TV

Posted in U.S. Supreme Court

Following up on our recent coverage of Mississippi ex rel. Hood v. AU Optronics Corp., my colleague Archis Parasharami had the opportunity to discuss the subject with Colin O’Keefe of LXBN. In this brief video interview, Archis discusses some of the class action issues that the Supreme Court is confronting now or may confront in the… Continue Reading

Justice Alito Addresses A Federal District Judge’s Policy Of Requiring Race- and Gender-Conscious Selection of Class Counsel

Posted in Class Action Settlements, U.S. Supreme Court

For the second time in two weeks, the Supreme Court’s denial of certiorari in a class action case—this time, Martin v. Blessing—has garnered significant attention because of a separate statement by a Justice concerning the denial of review. In Martin, the petitioner challenged the policy of one federal judge in the Southern District of New… Continue Reading

Supreme Court Will Address “Fraud-On-The-Market” Presumption in Securities Class Actions

Posted in Securities, U.S. Supreme Court

Earlier today, the U.S. Supreme Court granted review in Halliburton Co. v . Erica P. John Fund, No. 13-317, to address an important question affecting securities class actions: whether the “fraud-on-the market” presumption created by the Court in Basic, Inc. v. Levinson remains viable in light of new developments—both in economic thinking and in the… Continue Reading

Solicitor General to Supreme Court: Please Set The Rules For ERISA Stock-Drop Class Actions

Posted in U.S. Supreme Court

This past March, the Supreme Court asked the Solicitor General to weigh in as to whether two rather technical questions about ERISA stock-drop actions are worthy of the Court’s attention. See Fifth Third Bancorp v. Dudenhoeffer, No. 12-751. The Solicitor General filed his brief (pdf) yesterday. Sidestepping the technical questions, he asked the Court to intervene… Continue Reading

Twelve Amici Join Mayer Brown in Seeking Supreme Court Review of Front-Loading Washer Cases

Posted in Class Certification, Predominance, U.S. Supreme Court

As I have previously blogged, my colleagues and I have filed certiorari petitions in two significant cases affecting class-action litigation, Sears Roebuck & Co. v. Butler (pdf) and Whirlpool Corp. v. Glazer (pdf). The petitions challenge decisions that bless broad class actions on behalf of largely uninjured purchasers of front-loading washing machines whose product-defect claims… Continue Reading

Supreme Court Hears Argument in Class Action Fairness Act Case, Mississippi ex rel. Hood v. AU Optronics Corp.

Posted in CAFA, U.S. Supreme Court

Today at the Supreme Court, all eyes, including mine, were on the oral arguments in the Town of Greece prayer case. But the second case—although it will certainly garner less attention—also is of great importance, especially to class-action practitioners. The issue in that case, Mississippi ex rel. Hood v. AU Optronics Corp., is whether so-called… Continue Reading

Mayer Brown Files Cert Petitions In Front-Loading Washer Cases

Posted in Class Certification, Predominance, U.S. Supreme Court

Today, Mayer Brown filed a pair of certiorari petitions that challenge efforts by two federal appellate courts to narrow the Supreme Court’s recent class-action decisions in Comcast Corp. v. Behrend and Wal-Mart Stores, Inc. v. Dukes to tickets good for a single ride only. The Supreme Court previously remanded both cases for reconsideration after Comcast,… Continue Reading

Will the Ninth Circuit Revisit the Issue of Whether an Offer of Judgment to the Named Plaintiff Can Moot a Class Action?

Posted in Motions Practice, U.S. Supreme Court

Before the Supreme Court’s decision last Term in Genesis Healthcare Corp. v. Symczyk, 133 S. Ct. 1523 (2013), the Ninth Circuit had held that a named plaintiff can continue to pursue a putative class action even after the defendant has extended that plaintiff an offer of judgment for the full individual relief sought in the… Continue Reading