In 2009, the state of Oregon complained to Kellogg that they said Rice Krispies and Cocoa Krispies were fortified with antioxidants, and Kellogg changed the description of the boxes of the cereal—though the cereal is fortified with antioxidants. Almost immediately, several plaintiffs' lawyers filed lawsuits on the basis of Kellogg's announcement, and after several amended complaints, Kellogg's agreed to a nuisance settlement of $2.5 million. Class members can request $5 refunds for up to three boxes of cereal purchased between June 1, 2009 and March 1, 2010, an amount that will be reduced pro rata if the settlement money runs out, though one might expect that there will only be a few thousand claims. Though the class is nationwide, Kellogg is giving another $2.5 million (retail value, so it's really costing them half as much) in food to two local charities in Santa Monica and Atlanta. The class representatives will seek $5000 each.
How much are the attorneys asking for? I don't know: it's not in the notice or settlement agreement, but it comes out of the $2.5 million settlement fund. (The attorneys will announce on July 18; objections must be received by July 25—a Monday. This abbreviated and substandard notice is arguably a violation of Rule 23(h) and Ninth Circuit procedure in In re Mercury Securities Litig.. The notice is otherwise substandard, as there are several hoops one must jump through to object that are not listed in the notice.) Anything left over after the class is paid will go to the two local charities and a trial-lawyer group.
The case is Weeks v. Kellogg, Case No. CV 09-08102(MMM)(RZx) (C.D. Cal.).
Thursday, June 16, 2011
Monday, June 13, 2011
Bankruptcy creditor objections: "Hipster Battles Funds"
A bankruptcy court reorganization approval has some similarities to a class action settlement fairness hearing, as the court engages in an equitable inquiry to determine whether unrepresented parties are being fairly treated by a proposal. And, as we know from the fairness hearing context, courts often disregard the concerns of lay parties who can't afford to retain attorneys to protect them. So Nate Thoma faced long odds when he filed a pro se objection to the reorganization proposal of bankrupt Washington Mutual, complaining about a structure that failed to treat similarly-situated creditors equally and "gerrymandering" by favored bondholders to buy up a smaller-valued class of securities that would be frozen out to create the artificial appearance of an impaired class favoring the reorganization. Three cheers to him for winning. [WSJ (h/t L.O.); Thoma objection; In re Washington Mutual, Inc., 442 BR 314 (Bankr. D. Del. 2011)]
Baby products objection
As discussed at Point of Law, CCAF has filed an objection to the Babies "R" Us settlement in McDonough v. Toys "R" Us, Inc., No. 06-cv-242 (E.D. Pa.).
Wednesday, June 1, 2011
Saturday, May 14, 2011
AOL cy pres Ninth Circuit appeal oral argument set
I'll be arguing the AOL cy pres case June 7 in Pasadena. (My record in Ninth Circuit oral arguments to date: 2-0, with one pending.) Come watch if you're interested in cy pres issues. If you're not interested in cy pres, but are interested in trademarks and pornography (and who isn't?), they're also arguing Roxbury Entertainment v. Penthouse Media ("The content of the film is primarily graphic sex scenes; however, the 'story line' to the extent there is one, concerns a young couple fleeing some unfortunate or unlawful event.") the same session.
Friday, May 13, 2011
Stetson v. West Publishing Corp. - BarBri Class Action Settlement
Because the 170,000 class members are law students and lawyers, I've been getting a lot of inquiries about this case and its coupon settlement. Stay tuned: we will be objecting, and early enough that you can read the objection and choose to write in to the court to join it if you wish.
Note that the notice not only fails to disclose precisely how much the attorneys will be asking for, but disingenuously offers a May 30 deadline for receiving objections. Of course, May 30 is Memorial Day, so the real deadline is possibly as early as May 27. More details at Point of Law.
Note that the notice not only fails to disclose precisely how much the attorneys will be asking for, but disingenuously offers a May 30 deadline for receiving objections. Of course, May 30 is Memorial Day, so the real deadline is possibly as early as May 27. More details at Point of Law.
Monday, May 2, 2011
Court rules for NVIDIA
Details at the Point of Law blog. I'm sorry, as well as angry.
Update: I won't be filing an appeal, though my clients are of course free to find an attorney willing to do that for them.
I won't personally be filing a malpractice action, but I'm happy to consult with an attorney who is considering doing so if a class member finds one.
Update 2: Please don't email me asking for individual legal advice about what you can or should do with your computer, or what other legal options you may pursue. I don't have the resources to provide free advice to a million different class members beyond my five clients. You'll need to consult with your own attorney. I'm rooting for someone to bring a malpractice suit, but I'm not advising you one way or the other on that, either as a class action or as a small-claims case against Milberg.
I will note that I believe that, because NVIDIA failed to provide a computer of "like or similar kind" as the settlement notice promised, and because Judge Ware failed to enforce the settlement as written and noticed to the class (his opinion mistakenly says that the CQ-56 was "designated in the settlement"), the class notice is constitutionally invalid and cannot be considered to bind absent class members besides my five clients who got a ruling from Judge Ware. Someone who sues HP and/or NVIDIA in small-claims court and persuades the judge that the class notice does not bind them could possibly recover cash in small-claims court. Of course, HP and NVIDIA will argue that the notice was constitutionally valid and that the small-claims court does not have jurisdiction, so I am not giving you legal advice to pursue your claim in small-claims court; you could win, you could lose. Check with a lawyer.
Update: I won't be filing an appeal, though my clients are of course free to find an attorney willing to do that for them.
I won't personally be filing a malpractice action, but I'm happy to consult with an attorney who is considering doing so if a class member finds one.
Update 2: Please don't email me asking for individual legal advice about what you can or should do with your computer, or what other legal options you may pursue. I don't have the resources to provide free advice to a million different class members beyond my five clients. You'll need to consult with your own attorney. I'm rooting for someone to bring a malpractice suit, but I'm not advising you one way or the other on that, either as a class action or as a small-claims case against Milberg.
I will note that I believe that, because NVIDIA failed to provide a computer of "like or similar kind" as the settlement notice promised, and because Judge Ware failed to enforce the settlement as written and noticed to the class (his opinion mistakenly says that the CQ-56 was "designated in the settlement"), the class notice is constitutionally invalid and cannot be considered to bind absent class members besides my five clients who got a ruling from Judge Ware. Someone who sues HP and/or NVIDIA in small-claims court and persuades the judge that the class notice does not bind them could possibly recover cash in small-claims court. Of course, HP and NVIDIA will argue that the notice was constitutionally valid and that the small-claims court does not have jurisdiction, so I am not giving you legal advice to pursue your claim in small-claims court; you could win, you could lose. Check with a lawyer.
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