Consumer Law

Lawyer ordered to disgorge $11.4M to former clients loses challenge to consumer bureau’s power

A federal appeals court has upheld the authority of the Consumer Financial Protection Bureau in an appeal by a California lawyer ordered to disgorge $11.4 million he collected from underwater homeowners. The San Francisco-based 9th U.S. Circuit Court of Appeals ruled in a 2-1 decision (PDF) on April 14, the…

Apr 18, 2016 6:15 AM CDT

Can hacked data support fraud suit against Ashley Madison? Plaintiffs want to cite lawyer emails

Plaintiffs are seeking to cite hacked documents—including lawyer emails—to allege that the Ashley Madison dating website defrauded the public by creating fake female profiles to interest potential male clients. Plaintiffs in the multidistrict security-breach litigation contend they are entitled to refer to lawyer communications as a result of the crime-fraud…

Apr 18, 2016 5:45 AM CDT

FTC targets ‘all natural’ claims for first time with charges against five companies

Four companies that tout their “all natural” personal-care products have agreed to settlements with the Federal Trade Commission that require them to change their labels or advertising. A fifth company, California Naturel Inc., is facing an FTC lawsuit over its all natural claims, according to an FTC press release. All…

Apr 14, 2016 6:15 AM CDT

Lawsuit filed in US over intentional crash of German flight in French Alps

Lawyers for survivors of some of the 150 individuals who died when a co-pilot intentionally crashed a Germanwings flight in the French Alps last year have found a way to file suit over the incident in the United States. Investigators said privacy laws that allowed co-pilot Andreas Lubitz to conceal…

Apr 13, 2016 4:00 PM CDT

Facebook capture of medical info from web searches by users violates HIPAA and other laws, suit says

Updated: A 2012 federal lawsuit over Facebook tracking of users filed by attorney Paul Kiesel was dismissed last year, with leave to refile. U.S. District Judge Edward Davila said the plaintiffs in the San Jose, California, case didn’t make clear how they suffered “a realistic economic harm or loss” due…

Apr 13, 2016 1:15 PM CDT

Is consumer bureau an unconstitutional ‘super executive agency’? DC Circuit panel seems to think so

Ted Olson told the U.S. Court of Appeals for the D.C. Circuit on Tuesday that the Consumer Financial Protection Bureau is an unconstitutional “super executive agency” that violates the separation of powers. The two judges hearing the oral arguments appeared receptive to the argument, report the National Law Journal (sub.…

Apr 13, 2016 9:35 AM CDT

Another bank settles with DOJ over sales of risky mortgages; did it get a better deal than others?

Goldman Sachs Group has agreed to pay $5.06 billion to settle government claims that it sold risky mortgage securities to investors without disclosing the problems. The settlement includes $1.8 billion for consumer relief, nearly $2.39 billion in federal civil penalties, and $875 million to settle other federal and state claims,…

Apr 12, 2016 9:46 AM CDT

Is more cemetery regulation needed? Lawsuit plaintiffs say answer is yes

Galilee Memorial Gardens was closed two years ago, and the owner of the Memphis, Tennessee-area cemetery got probation in a plea deal. But relatives and friends of hundreds of people allegedly buried there in unknown graves, according to an ongoing Tennessee lawsuit, are still seeking answers about the locations of…

Apr 11, 2016 5:00 PM CDT

‘Hail Mary’ suit filed by Patriots fans over Deflategate loss of draft picks

Todd Orsatti’s daughter is only 7 years old. But she is already jaded by the so-called “Deflategate” scandal that lead to National Football League punishment of the New England Patriots, says the season ticket holder in a federal lawsuit filed by fans. “She will no longer go to games with…

Apr 7, 2016 12:05 PM CDT

Insurer offers legal insurance directly to consumers for $16.25 a month

A second insurance company has decided to offer prepaid legal insurance directly to consumers. The insurer, ARAG, offers two plans for consumers, one for $16.25 a month and another that covers more legal matters for $24.50 a month, reports LawSites by Robert Ambrogi. The deductible is $250 per matter. The…

Apr 7, 2016 8:53 AM CDT

Is Uber ride-sharing app a price-fixing scheme? Federal judge OKs conspiracy suit against CEO

A federal judge gave a green light on Thursday to a lawsuit alleging that the head of Uber Technologies Inc. is involved in a price-fixing conspiracy with drivers who use the company’s ride-sharing smartphone application to find paying passengers. Co-founder and chief executive officer Travis Kalanick had sought to dismiss…

Apr 1, 2016 11:05 AM CDT

In first GM ignition-switch case to go to verdict, jury awards zip, saying defect didn’t cause crash

Both sides proclaimed victory Wednesday after the first jury verdict in a General Motors ignition-switch case. That’s because the jury, while finding a 2007 Saturn Sky unreasonably dangerous because of an ignition-switch defect, also found that the defect did not cause the plaintiff driver to lose control on an icy…

Mar 30, 2016 3:20 PM CDT

GM lawyers won’t face Michigan ethics probe

Michigan won’t open ethics probes against lawyers for General Motors who were fired following an internal probe into the automaker’s handling of faulty ignition-switch issues. Michigan’s Attorney Grievance Commission refused in February and March to consider whether a half dozen lawyers should be sanctioned, the Wall Street Journal (sub. req.)…

Mar 28, 2016 9:08 AM CDT

Retailer must make website accessible to visually impaired and pay plaintiff legal fees, judge rules

In what a lawyer for the plaintiff is calling a landmark decision, a California judge has ordered a luggage retailer to make its website accessible to those who are visually impaired. Bag’n Baggage must also pay $4,000 plus attorney’s fees for plaintiff Edward Davis, which are expected to top $100,000,…

Mar 25, 2016 4:20 PM CDT

Lawsuit seeks R-rating or higher for movies depicting tobacco use

A class action lawsuit filed in federal court in San Francisco contends that movies using tobacco imagery should get at least an R rating. The would-be class action suit (PDF) says Hollywood studios have known since at least 2003 that tobacco imagery in films rated G. PG and PG-13 contribute…

Mar 25, 2016 6:00 AM CDT