Consumer Law

Divided SEC OKs crowdfunding rules for contributions to companies

Implementing a 2012 law that allows companies to seek crowdfunding from individuals via the Internet, the U.S. Securities and Exchange Commission on Friday voted 3-1 to adopt new rules. They limit contributions to no more than 5 percent of net worth or $2,000, whichever is higher, for individuals who either…

Oct 30, 2015 3:35 PM CDT

Chemerinsky: What are the limits of congressional power to authorize suits?

Spokeo Inc. v. Robins, which will be argued on Monday, Nov. 2, has the potential to significantly change the law in terms of the ability of federal statutes to authorize suits in federal courts. For this reason, 17 conservative and business groups—including the Chamber of Commerce, the National Association of…

Oct 28, 2015 3:00 PM CDT

Couple’s suit says Apple should pay for increased usage cost from Wi-Fi Assist feature

A feature on new Apple smartphones is intended to make use of the devices faster and smoother by switching to cellular service from Wi-Fi if the connection is weak. But the Wi-Fi Assist feature of the latest version of the iOS operating system for iPhones and iPads caused them to…

Oct 26, 2015 5:00 PM CDT

Woman survives accident after 6 days trapped in car, gets recall notice and sues GM

Kristin Hopkins survived an accident that left her trapped in her upside-down vehicle in freezing conditions for nearly six days last year. Finally a passer-by happened to spot her, some 140 feet off the road, at the bottom of a wooded embankment. However, she had to have both legs amputated…

Oct 26, 2015 12:15 PM CDT

U-Haul sues over claimed Chicago truck-towing scheme

More than half a dozen Chicago-area towing companies participated in a scheme to tow U-Haul trucks and trailers without authorization, forcing the company to pay hefty fees amounting to thousands of dollars, a lawsuit alleges. U-Haul of Illinois filed the Cook County Circuit Court suit last week against 14 defendants,…

Oct 26, 2015 6:15 AM CDT

Deadline looms for beer and tuna refund bonanza in major class-action settlements

There may not be a free lunch, but a beer and tuna bonanza awaits savvy consumers who apply in time for refunds in class-action settlements. Under a $20 million settlement with Anheuser-Busch Companies LLC that was OK’d by a federal judge in Miami, Florida, this week, consumers who can prove…

Oct 23, 2015 8:30 AM CDT

Amazon sues 1,114 John Does over alleged fake review offers targeted to its site

Expanding on earlier litigation, Amazon.com Inc. filed suit Friday against 1,114 John Does who allegedly offered to post fake consumer reviews on the Internet giant’s website, for a fee. The alleged offers were made on Fiverr.com, for as little as $5, USA Today reports. Potential customers would presumably be those…

Oct 20, 2015 2:35 PM CDT

Judge gives preliminary approval to Subway sandwich-length settlement

A federal judge in Milwaukee has given preliminary approval to a settlement in consolidated litigation that contended some Subway sandwiches failed to measure up to touted foot-long and 6-inch lengths. Subway franchiser Doctor’s Associates has agreed to quality control measures to help ensure the bread sold to customers is the…

Oct 20, 2015 2:31 PM CDT

Supreme Court considers case of litigant who ‘won’t take yes for an answer’

The U.S. Supreme Court on Wednesday considered whether a full settlement offer moots a case—an issue that could have a big impact in class actions. The plaintiff, Jose Gomez, filed a would-be class action suit when he got an unsolicited text on behalf of the Navy. The text sought recruits…

Oct 15, 2015 10:25 AM CDT

Consumer financial agency considers rules barring companies from blocking class actions

The Consumer Financial Protection Bureau is considering proposed rules that would bar consumer financial companies from using arbitration clauses to block class actions. CFPB Director Richard Cordray announced the proposals in a press release, saying companies are using arbitration clauses “as a free pass to sidestep the courts and avoid…

Oct 9, 2015 5:45 AM CDT

Judge dismisses class action suit against Florida Coastal School of Law

A judge has dismissed a class action suit against a Florida law school whose alumni claimed they were misled about their job prospects after graduation. U.S. District Judge Brian J. Davis of Jacksonville held that the plaintiffs did not have a case against Florida Coastal School of Law under the…

Oct 7, 2015 5:20 PM CDT

Ralph Nader opens his American Museum of Tort Law

Scalding-hot coffee, exploding cars and dangerous toys are catnip to plaintiffs lawyers, but do they appeal to regular people, too? Ralph Nader thinks so, and he's out to prove it with the American Museum of Tort Law. Housed in an old bank building in Nader's hometown of Winsted, Connecticut, the…

Oct 1, 2015 8:40 AM CDT

County sues Volkswagen for $100M, seeks civil penalties for violation of emissions laws

In what may be the first such lawsuit against Volkswagen, a Texas county has filed a complaint seeking an estimated $100 million in damages over alleged violations of local vehicle emissions laws. Harris County doesn’t have any Volkswagens in its fleet, but is seeking in its complaint (PDF) to address…

Sep 30, 2015 12:35 PM CDT

Dozens of VW lawsuits will almost surely be consolidated, but where?

Updated: After news of a U.S. recall over claimed rigging of a half-million Volkswagen diesel-powered vehicles to trick emissions tests came news of a federal criminal probe, the resignation of the company’s CEO and the filing of dozens of civil lawsuits around the country. Among the latest is a federal…

Sep 29, 2015 4:20 PM CDT

West Virginia funeral home accused of filing false death claims

The owners of a West Virginia funeral home have been accused of filing false death claims with insurers on behalf of 108 people who are still alive. The accusations are contained in a lawsuit filed Friday against the Galens-Harding funeral home in Poca, West Virginia, and owners Chad and Billie…

Sep 23, 2015 5:27 PM CDT