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Drug-maker Faces Class Action Over Zimulti
Class Action News | 2008/01/09 11:49

A class action lawsuit has been filed against pharmaceutical powerhouse Sanofi-Aventis alleging that the company hid data concerning adverse events associated with their obesity medication Zimulti. The French company allegedly concealed data showing Zimulti's propensity to cause depression. Zimulti has also been shown to increase suicidal ideation and action in some cases.

In June the FDA unanimously decided that Zimulti could not be recommended for approval in the U.S.; however, the drug can be purchased through online pharmacies based in other countries.



Darden settles 2 class-action lawsuits for $4 million
Class Action News | 2008/01/08 17:56
Darden Restaurants paid $4 million to settle two class-action lawsuits that had been brought by California employees of Red Lobster and Olive Garden, the Orlando-based company reported in a government regulatory filing late last week.

Settlement of the wage dispute, which was paid out during the company's fiscal second quarter that ended in November, trimmed earnings for the quarter by 2 cents a share, the company reported.

In its quarterly earnings report filed with the U.S. Securities and Exchange Commission, Darden said the class-action suits, alleging wage-and-hour violations, were filed in 2004 involving the Red Lobster restaurants and in January 2007 involving the Olive Garden outlets.

In each case, several restaurants were accused of violating a California law that prohibits restaurant managers from requiring servers and bartenders to make up for cash shortages at the end of their shifts.

Darden has a nationwide policy that prohibits the practice, company spokesman Bob McAdam said. The company admitted no wrongdoing in settling the lawsuits, McAdam said, but decided they were too costly to pursue further in court. The allegations, he added, "are almost impossible to prove one way or the other."

Darden has "redoubled" its management training to ensure compliance with the company's policy, he said.


Sanofi says to fight class action bid
Class Action News | 2008/01/04 13:34
Drugmaker Sanofi-Aventis, the target of a lawsuit seeking class-action status filed on behalf of shareholders, on Friday vowed to fight allegations it hid the side-effects of its anti-obesity drug Acomplia.

A Sanofi-Aventis spokesman told Reuters that the company had seen the statement issued by the U.S. law firm that filed the lawsuit, Schiffrin, Barroway, Topaz & Kessler, and that it was "disputing the allegations contained in the statement and plans to vigorously defend itself". Sanofi-Aventis had no further comment.

In a statement available on its website, the law firm said the suit was filed in the U.S. district court for the Southern District of New York "on behalf of all purchasers" of Sanofi-Aventis securities from Feb 17, 2006 through June 13, 2007.

"...the complaint alleges that the company failed to disclose material adverse data concerning Zimulti's tendency to cause a statistically significant increase in psychiatric problems, including suicidal thoughts and actions," the statement said.

On June 13 an advisory committee said the U.S. Food and Drug Administration (FDA) should reject the proposed pill, called Zimulti in the United States, because of concerns it could increase suicidal thinking and depression.

The recommendation triggered a sharp fall in Sanofi's share price in the following days.

This is not the first time Sanofi has faced possible Acomplia-related lawsuits seeking class-action status. In November 2007, U.S. law firm Coughlin Stoia Geller Rudman & Tobbins LLP filed a lawsuit in the U.S. District Court for the Southern District of New York, alleging Sanofi-Aventis misled investors about prospects for Acomplia.



Travelers Cos. class action suit settled
Class Action News | 2008/01/02 15:34

Florida, eight other states and the District of Columbia announced they have reached a settlement with the Travelers Cos. in what they said was a "pay-to-play" scheme orchestrated by insurance broker Marsh & McLennan. Travelers will pay a multistate task force $6 million to resolve allegations of improper business steering in the commercial insurance market. That activity resulted in higher premiums being paid by Florida governmental entities, companies and nonprofit organizations, according to a statement by Attorney General Bill McCollum, Chief Financial Officer Alex Sink and Insurance Commissioner Kevin McCarty.

"Policyholders have every right to expect fair and honest treatment from their insurers," McCollum says. "We will continue to aggressively demand accountability and transparency from the insurance industry in Florida."

Travelers allegedly conspired with Marsh & McLennan and other brokers to create the illusion of a competitive bidding process by submitting fake bids even though the brokers had already determined which insurer would receive a particular policyholder's business, according the Florida officials.

Travelers paid "contingent commissions" to these brokers, and these commissions were not disclosed to policyholders, officials say.

The Florida Attorney General's Office, Department of Financial Services and Office of Insurance Regulation will receive a combined $1.1 million of the settlement. The money will fund a reimbursement pool for affected public entity policyholders and repay the state agencies' costs of investigation.

In addition to the financial settlement, Travelers has agreed to a consent decree and final judgment that will provide comprehensive injunctive relief, including a requirement to disclose compensation that Travelers pays to insurance brokers.

Travelers also will be required to disclose to all customers and prospective policyholders the ranges and averages of payments it made to insurance brokers on specific lines of insurance.

The consent decree and final judgment will be filed in Leon County Circuit Court this week.

Travelers has cooperated with the multistate task force and will provide assistance to the states as they continue their investigation of insurance brokers and other insurers. The company has already reimbursed a nationwide group of policyholders for overcharges and has adopted significant business reforms that govern its bidding and underwriting practices.

In addition to Florida, the following states following seven states and the District of Columbia participated in the investigation and settlement: Hawaii, Maryland, Massachusetts, Michigan, Oregon, Texas, West Virginia and Pennsylvania.



Search Giants Face Class-Action Lawsuit
Class Action News | 2008/01/02 11:31
Legal partnership Hagens Berman Sobol Shapiro (HBSS) has announced that it has filed a lawsuit in California Superior Court against Google and Yahoo! along with several other popular websites for damages.

The class-action lawsuit relates to the search engines running adverts from online gambling sites, which HBSS claims made them hundreds of millions of dollars even though against California law.

The case is to be heard on February 11 and will test the liability of these companies in California as HBSS is to ask the Court to further restrict their ability to advertise in the future.

'We believe these companies have been profiting from this illegal practice for more than a decade and we believe the agreement with the Government does not go far enough,' said Reed Kathrein, Lead Attorney for HHBS.

'The settlements are a great victory and a tacit admission by these online advertisers but there is still more work to do in holding these companies accountable for the harm they have done to Californians and to keep them and others from continuing these practices.

'Given the amounts the huge profits we believe they made, we believe these relatively small forfeiture penalties will not deter them or others in the future.'

Kathrein stated that the lawsuit calls for the websites to pay relief and acknowledge that the practice of advertising online casinos in the state is illegal.

The complaint also calls for disgorgement of profits earned from online advertisers, a figure that could exceed hundreds of millions of dollars and benefit education and rehabilitation efforts aimed at gambling addiction.

This latest lawsuit follows late-December’s $31.5 million settlement with the Federal Government by Google, Yahoo! and Microsoft over claimed online gambling advertising infringements.



Stuck Passengers Sue American Airlines
Class Action News | 2008/01/01 15:29
Two passengers who were kept aboard American Airlines jets on the ground for more than nine hours in 2006 have sued the airline, saying they deserve compensation for being imprisoned against their will.

The plaintiffs, Kathleen Hanni of Napa, Calif., and Catherine Ray of Fayetteville, Ark., want courts to certify the cases as class actions covering thousands of passengers stranded on American flights when severe weather temporarily shut Dallas/Fort Worth airport on Dec. 29, 2006, forcing flights to go to other airports.

Both women's flights were diverted to Austin. The complaints allege passengers suffered hunger, thirst, illness, emotional distress and financial losses when American (AMR) failed to supply the planes with food or water, empty the toilets or let passengers off.

The complaints were filed in state courts last week in Napa and Fayetteville.

American spokesman John Hotard declined to comment on the complaints, saying he had not seen them. He noted that since December 2006, American has implemented new procedures designed to prevent recurrences. Those include a guideline limiting ground delays to four hours when possible and letting passengers deplane when it is safe to do so.

Hotard said a record number of American flights were diverted Dec. 29, 2006, because of severe thunderstorms.

"That was our largest weather disruption, ever, and we handled it the best we could," he said. "I think we have fixed the problem and lawsuits are not necessary."

The cases come amid public and congressional calls for stronger regulation of how airlines treat customers. A New York law that would penalize airlines for holding passengers on planes without food and water took effect Tuesday, and the U.S. House of Representatives has passed a bill that would force airlines to provide essential needs to stranded fliers.

"We're looking for justice for the passengers," Hanni said in an interview Monday.

After her experience, she founded Coalition for an Airline Passengers' Bill Of Rights.

Class actions against airlines when no crash is involved are unusual but not unprecedented. In 2001, Northwest Airlines (NWA) settled a similar class-action lawsuit by paying $7.1 million to passengers held aboard grounded planes in Detroit for up to eight hours during a January 1999 blizzard.

Aviation lawyer Jon Schneider of Boston said proving false imprisonment will be "a stretch."

"The passengers voluntarily boarded the plane," he said. "They will have to demonstrate the airline was completely unreasonable. I think the airline's response will be that they didn't do it intentionally."

Hanni's complaint says the captain told passengers American's management would not allow the plane to go to a gate. It says that after 9 hours 17 minutes, the captain declared an emergency so he could go to a gate.

During the delay, passengers received only a bag of pretzels and a cup of water, and the plane's toilets overflowed, it says.

Hanni said American later gave her a $500 coupon for a future flight. She said she hasn't used it.



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