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Sanofi says to fight class action bid
Class Action News |
2008/01/04 13:34
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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. |
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Travelers Cos. class action suit settled
Class Action News |
2008/01/02 15:34
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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. |
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Search Giants Face Class-Action Lawsuit
Class Action News |
2008/01/02 11:31
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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. |
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Stuck Passengers Sue American Airlines
Class Action News |
2008/01/01 15:29
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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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Travelers Cos. settles class action suit
Class Action News |
2007/12/31 13:55
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Property-casualty insurer Travelers Cos. Inc. said Monday it settled a class action lawsuit for an undisclosed amount, according to a filing with the Securities and Exchange Commission. The lawsuit, brought by certain shareholders of the company, alleged violations of federal securities laws, saying the company failed to disclose its practice of paying brokers commissions on a contingent basis, among other things. Additionally, the St. Paul, Minn.-based company reached an agreement with the attorneys general of Florida, Hawaii, Maryland, Michigan, Oregon, Texas, West Virginia, Massachusetts, Pennsylvania and the District of Columbia -- as well as the chief financial officer of Florida and the Office of Insurance Regulation of Florida -- settling their industrywide investigations into insurance placement practices. Both settlements are subject to court approval. Travelers said the settlements will not affect its financial results. Details of the agreements were not released. |
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Basin Water in Rancho Cucamonga sued by shareholders
Class Action News |
2007/12/27 20:05
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A San Diego law firm has launched a class-action suit against Rancho Cucamonga-based Basin Water Inc., alleging that it misled shareholders, causing the company's stock price to rise to inflated heights, leading to losses for investors when the stock later fell. Basin designs and builds groundwater treatment systems. The law firm, Coughlin Stoia Geller Rudman & Robbins LLP, says Basin and some of its officers and directors issued false and misleading statements about the company's financial results. In particular, Coughlin Stoia alleges that Basin concealed facts from potential investors that included commitments to sell product at unprofitable prices and increased costs for waste disposal and salt purchasing. The complaint also says company officials knew Basin had long-term contracts that would hurt profitability and lied about the status of those contracts. In November, the stock fell 22 percent in one day after Basin announced that it would take a $4.7 million charge to reserve money for projected losses. Basin said at the time it was the second charge the company had taken in less than a year related to so-called legacy projects. Also, Basin said, improvements in its accounting practices allowed the company to determine the systems will continue to operate at a loss for some time. The company said its management earlier this year established new business processes that ensure future contracts are properly priced and that Basin can pass along price increases to customers. Late Friday, it was announced that a Baltimore law firm had started a class action against Basin as well. Basin officials could not reached for comment Friday. Its shares closed at $9 Friday, up 89 cents. |
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