Quarterly Update From Inside Class Actions
April 2024, Covington Report
Inside Class Actions covers significant developments and trends across every facet of class action practice, including arbitration, discovery, certification, and settlement. The blog will be of interest to companies facing class action litigation, class action practitioners, and individuals who want to learn more about this constantly evolving area of law.
This quarter featured posts discussing the Supreme Court’s recent opinion regarding “pure omissions” claims, a decision from the Ninth Circuit affirming the dismissal of privacy-related claims based on the defendant’s disclosure of the challenged practices, new rules from the American Arbitration Association meant to address mass arbitration, and new developments from the United Kingdom. These posts, and other highlights, include:
1. A recent Supreme Court decision holding that securities fraud claims under SEC Rule 10b–5 are limited to those based on false or misleading statements and cannot be based on “pure omissions” alone.
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2. A Ninth Circuit decision affirming dismissal of privacy, contract, and consumer protection claims based on the defendant’s Privacy Policy, which generally disclosed the type of data collection plaintiffs challenged.
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3. A set of modified AAA arbitration rules, effective January 15, 2024, meant to address the increasingly common tactic of plaintiffs’ firms launching mass arbitration campaigns.
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4. Decisions allowing “greenwashing” false advertising claims to proceed to trial and certifying those same claims for class treatment.
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5. An Eleventh Circuit opinion vacating a class action settlement after concluding that the named plaintiffs lacked standing to seek injunctive relief, a component of the settlement.
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6. A decision highlighting a trend of courts reading the Video Privacy Protection Act’s definition of “consumer” narrowly in dismissing a putative class action.
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7. Amendments proposed to draft legislation in the United Kingdom that would extend the grounds upon which opt-out class actions can be brought; and allowing these not only for competition law breaches, but also for consumer law breaches, and potentially on other grounds.
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Covington’s Class Action Litigation Group represents companies in class actions in nearly every major substantive area in which such suits are brought, including, among others, antitrust, consumer protection, privacy, product liability, securities, employment, and ERISA.
If you have any questions concerning the material discussed in this client alert, please contact the members of our Class Actions practice.
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