Class Actions

This guy deserves way more than $10.

A good chunk of America was Googling “class action” this weekend thanks to Facebook. Millions of the site’s users received an email in the last few days with the subject “Re: LEGAL NOTICE OF SETTLEMENT OF CLASS ACTION.” Those that didn’t immediately delete it as spam discovered they’re entitled to up to $10 from the social networking giant for putting them in “Sponsored Story” ads. That’s when Facebook takes something you Liked or a link you posted and uses it in an ad aimed at your friends. (So, word to the wise, never ever post a link on Facebook to a 55-gallon gallon drum of sex lube.)

Fraley v. Facebook, the class action lawsuit that could make a bunch of Facebook users a little richer and a bunch of class action lawyers (led by Robert Arns) a lot richer, was filed in California in 2011 by an enterprising group of plaintiffs led by seamstress Angel Fraley, shortly after “Sponsored Stories” launched. They claimed the company had violated the law by using their names and likenesses in ads without their permission and without paying them. (Lead plaintiff Fraley later dropped out of the suit citing Facebook lawyers’ aggressive tactics, which basically consisted of digging up embarrassing material about her from her profile page.)

Facebook and the plaintiffs settled the suit in December to the tune of $20 million. That $20 million is covering the class action lawyers’ fees ($7.5 million plus expenses), with the rest either being divvied up among approximately 125 million presumably-aggrieved Facebook users who appeared in Sponsored Stories ads, or, if the demand is too great, divided by a bunch of non-profits that work on privacy issues. If the amount of money divided by the number of claimants comes out to less than $4.99 each, the money goes to the non-profits, who surely must be in the midst of planning a major “Rock The Claim” campaign. Unfortunately, I can’t help out.

Continue reading at Forbes….

Earlier this week, we wrote about a pair of prominent partners at Skadden Arps who got hit with a big-time benchslap. A federal judge in Chicago issued an order to show cause, requiring the Skadden lawyers to explain why they should not be sanctioned for failing to cite a highly relevant (arguably dispositive) Seventh Circuit case when briefing a motion to dismiss. The judge also set “a status hearing in open court…. [at which the attorneys] are all directed to appear in person.”

The Skadden partners filed a contrite response. They apologized profusely to the court, explained why they viewed the Seventh Circuit as distinguishable, and argued that even though they erred, their conduct didn’t merit sanctions. They announced to the court that they had settled the case in question, with Skadden “contributing to the settlement amount in order to personally redress plaintiffs’ counsel for responding to the motion to dismiss.” (In a classy move, they also extracted their associate from under the bus, explaining that he played no substantive role in the briefing.)

Despite the apology and the settlement, the status hearing went forward as scheduled yesterday. What happened?

double red triangle arrows Continue reading “Benchslap Update: Skadden Partners Learn Their Fates”

On the transactional side, things seem to be going gangbusters for Skadden Arps. As we noted yesterday, the firm took the top spot in three separate rankings of 2012 M&A work. In 2011, a different firm sat atop each set of rankings, but in 2012, Skadden ruled them all.

On the litigation side, though, the new year has brought new headaches for Skadden. Earlier this month, a high-profile partner at the firm, along with another partner and an associate, got hit with a big benchslap. A federal judge issued an order to show cause, asking the Skadden lawyers to explain why they should not be sanctioned, and set “a status hearing in open court…. [at which the attorneys] are all directed to appear in person.” Ouch.

Skadden recently filed its response to the OSC. Let’s review the benchslap, then see what the Skadden lawyers had to say for themselves….

double red triangle arrows Continue reading “Benchslap of the Day: Skadden, Smacked, Eats Crow”

* Justice Sonia Sotomayor just ruined Hobby Lobby’s new year by refusing to block the Affordable Care Act’s contraceptives mandate. All of the members of the company’s legal team will have to scrapbook and crochet for hours to get over this loss. [Reuters]

* Harvard Law graduate Barack Obama is being feted as CNN’s “Most Intriguing Person of 2012,” but he’s currently trailing in fourth place in the most important year-end poll of all: Above the Law’s Lawyer of the Year competition. Get out there and vote! [CNN]

* Federal district court judges aren’t being confirmed as quickly as they once were, and it’s partly because our president isn’t submitting nominees as quickly as those who came before him. [WSJ Law Blog (sub. req.)]

* But even if the president nominated judges more quickly, he’d continue to face harsh opposition from the NRA, which matters because the gun group has an entire party in its pocket. [Opinionator / New York Times]

* A legal problem and a journalism problem wrapped up in a little pretty bow: David Gregory of NBC’s “Meet the Press” is being investigated for displaying an alleged 30-round magazine on the air. [Washington Post]

* One of New York’s most prestigious private schools agreed to settle the sex abuse suit brought against it by former students. Simpson Thacher partner Phil Culhane must be doing a victory dance. [New York Daily News]

* You got a fast car, and now this case will pay all our bills. Toyota settled a class action suit over unintended acceleration, and it’s touted as one of the largest product-liability settlements in history. [New York Times]

* Ay dios mio! You know that you’re never going to enjoy another vacation when you catch a hotel employee spreading his seed all over your clothes. But what did you expect? It’s Mexico. [Courthouse News Service]

* Another year, another round-up of the year’s legal highlights from the National Law Journal. Perhaps after a year that was wracked with destruction for this supposedly noble profession, we’ll actually see some substantial change in 2013. [National Law Journal]

* Meanwhile in Iowa, failure to sleep with your horndog boss is “like having a Lamborghini in the garage and never driving it,” so if he’s irresistibly attracted to your exotic lady parts car, you better be ready, willing, and able to find yourself a new job. [Washington Post]

* People were so pissed off about Instagram’s new terms of service that someone filed a class action suit. The app’s litigation filter must make exasperated attorneys and wasted dollars look shiny and happy. [Reuters]

* “It is not the perfect path to wealth and success that people may have envisioned.” As we’ve been stating here at Above the Law for years, being a lawyer is no longer the golden ticket that it once was. [Bloomberg]

* ASU Law will now offer a North American Law Degree that’ll prepare graduates to practice in the U.S. and Canada. Yes, ship your jobless grads north where there’s an articling crisis, great idea! [Associated Press]

* Still thinking about applying to law school? That’s a funny joke. But if you’re interested in being a punchline in three years, follow this application season timeline. [Law Admissions Lowdown / U.S. News & World Report]

* Jack Klugman, noted actor whose roles included that of Juror #5 in Twelve Angry Men, RIP. [New York Times]

* Richard Adams, a plaintiff in the first suit seeking federal recognition of gay marriage, RIP. [New York Times]

In August, New York Law School (NYLS) was hit with a class action lawsuit over the school’s allegedly deceptive post-graduate employment data. The case was filed by plaintiffs’ lawyers Jesse Strauss and David Anziska. In October, NYLS filed a motion to dismiss that claim. In March, the lawyers ventured down to the New York Supreme Court to argue the merits of the case, and a little more than one week later, we broke the news that the suit had been dismissed by Judge Melvin Schweitzer. The plaintiffs’ lawyers vowed to appeal that decision, and today, we’ve got news on whether the Gomez-Jimenez v. NYLS suit will live to see another day.

What result? The dismissal of the class action lawsuit filed by Team Strauss/Anziska against NYLS over its allegedly deceptive employment statistics has been affirmed….

double red triangle arrows Continue reading “BREAKING: Dismissal of Class Action Suit Against New York Law School Is Affirmed”

Women often get the short end of the stick when it comes to upward mobility in their careers. Despite the fact that firms claim to be rectifying these inequities, for every two steps forward the legal industry takes, women seem to be pushed two steps back. Be it smaller salaries or fewer leadership opportunities, women lawyers are usually left holding the bag. It’s almost as if they’ve got to make up for what they lack (dangling genitalia), in all of their dealings.

Women already have a hard enough time as it is without being unfairly subjected to unspoken policies that affect both firm politics and partnership decisions. But, such is life when you’ve thrust yourself into the wonderful world of Biglaw, where the “boys club” reigns supreme, and women are essentially railroaded into the pink ghetto.

How would you like to work for a firm where men hog all of the origination credit, and do their damnedest to exclude women from client pitches? How would you like to work for a firm where women are encouraged to have intimate relationships with firm leaders in order to be promoted?

That doesn’t sound like a friendly working environment, but that’s exactly what a $200 million class action suit against Greenberg Traurig alleges….

double red triangle arrows Continue reading “This $200 Million Class Action Case Claims Women Are Being Elbowed Out By The Greenberg Traurig ‘Boys Club’”

* “[T]here is only so far you can go when representing clients.” David Tamman, the ex-Nixon Peabody partner who was “thrown under the bus” by the firm, was found guilty of helping a client cover up a $20M Ponzi scheme. [Thomson Reuters News & Insight]

* You surely must remember former UT Law dean Larry Sager and his controversial $500K forgivable loan. Well, as it turns out, the school is now condemning the practice as inappropriate, and calling for its permanent suspension. [Texas Tribune]

* Someone finally sued a power company over its horrendous response to Hurricane Sandy. The Long Island Power Authority should’ve seen this lawsuit coming, but was woefully unprepared. Figures. [Bloomberg]

* I can haz copyright infringement? Internet memes are all the rage — we even had our own contest — but you may find yourself wading into dangerous intellectual property waters with improper use. [Corporate Counsel]

* Papa John’s is facing a $250M class-action lawsuit for spamming its customers with text messages advertising deals. With share prices dropping, it must suck to be Peyton Manning right now. [CNNMoney]

* Everyone’s happy about the Dewey & LeBoeuf settlement except the Ad Hoc Committee and its LeBoeuf retirees, who called Judge Martin Glenn’s attempt to slap them down an “insult to injury.” [WSJ Law Blog]

* While South Carolina’s voter ID law wasn’t found to be inherently discriminatory, its enforcement was still blocked because people will be unable to get their sh*t together in time for the election. [Bloomberg]

* VP debate moderator Martha Raddatz’s 1991 wedding guest list has come under fire because Barack Obama was invited. Clearly there’s a conflict of interest worth arguing about here. [Washington Post]

* This man is nobody’s “butt boy”: Tom Keefe, the interim dean over at Saint Louis Law School, will be footing a $14,212 bill for his students in the form of ABA Law Student Division memberships. [National Law Journal]

* Strippers in California, Florida, Idaho, Kentucky, Texas, and Nevada will be making it rain, because they just scored a $12.9M class action settlement. That’s a whole lot of “college tuition”! [Courthouse News Service]

* Bank of America agreed to pay $2.43 billion, one of the biggest securities class-action settlements in history, to put the Merrill Lynch mess behind it. According to Professors Peter Henning and Steven Davidoff, B of A “is probably quite happy with the settlement given that it could have potentially faced billions of dollars more in liability in the case.” [DealBook / New York Times]

* “Oyez! Oyez! All persons having business before the Honorable, the Supreme Court of the United States, are admonished to draw near and give their attention, for the Court is now sitting.” Here is Robert Barnes’s take on the SCOTUS Term that starts today. [Washington Post]

* And here is Professor Garrett Epps’s review of Jeffrey Toobin’s new book on the Supreme Court, The Oath (affiliate link). [New York Times]

* How Dewey justify paying a big bonus to a member of the management team “when it has been widely pointed out that excessive compensation to the firm’s upper management significantly contributed to the firm’s collapse in the first place?” [Bankruptcy Beat via WSJ Law Blog]

* A high-profile Vatican trial raises these questions: “‘Did the butler do it?’ Or rather, ‘was it only the butler who did it?’” [Christian Science Monitor]

* Ben Ogden, an Allen & Overy associate who was killed in a Nepalese plane crash, R.I.P. [Am Law Daily]

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