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Archive for the ‘Class Action’ Category

Miami Law Firm Joins Class Action Suit Against Yelp

Wednesday, February 24th, 2010

To loyal users, Yelp.com is a helpful way to find and share reviews of local businesses, but some business owners claim that the website's business practices represent something closer to an extortion scheme.

Miami-based law firm Beck & Lee has joined with a San Diego firm to file a class action suit against the company, according to Mashable. The plaintiff in the suit, a Long Beach Veternary Hospital claims it contacted Yelp to see if it could delete a bad review. At first the representative refused, but then offered to hide or delete the review for about $300 a month.

The East Bay Express ran a story last year claiming that Yelp was essentially "the business of extortion 2.0."

During interviews with dozens of business owners over a span of several months, six people told this newspaper that Yelp sales representatives promised to move or remove negative reviews if their business would advertise. In another six instances, positive reviews disappeared -- or negative ones appeared -- after owners declined to advertise.

Because they were often asked to advertise soon after receiving negative reviews, many of these business owners believe Yelp employees use such reviews as sales leads. Several, including John, even suspect Yelp employees of writing them. Indeed, Yelp does pay some employees to write reviews of businesses that are solicited for advertising. And in at least one documented instance, a business owner who refused to advertise subsequently received a negative review from a Yelp employee.

Yelp immediately denied any wrong doing and claimed the story was inaccurate.

"While we haven't seen the suit yet, anyone can file one, and since the allegations are false we will dispute them aggressively," a Yelp representative tells Mashable regarding the latest suit.

Law Firm Group Seeks National Suit Against Toyota

Thursday, February 11th, 2010

Lawyers with nearly two dozen firms around the country hope to consolidate their claims that Toyota Motor Corp.'s recalls have cost customers billions of dollars.

P. Tim Howard, a Northeastern University law professor leading the group seeking class-action status for numerous existing lawsuits, said Wednesday that the more than 8 million vehicles recalled by Toyota have collectively lost more than $2 billion in resale value because of the recalls.

Kelley Blue Book and other automotive guides have warned that the recalls begun in November are eroding the value of Toyotas. The car appraisal guide estimated Wednesday that the resale value of recalled cars and trucks will fall another 1.5 percent. That's on top of a drop of 1 percent to 3 percent Blue Book analysts forecast last week.

Howard, who litigated against tobacco companies in the 1990s, also said he will seek damages for Toyota drivers who have decided not to use their recalled vehicles, although the value is more difficult to determine.


Investors file class action complaint against Toyota

Tuesday, February 9th, 2010

Toyota Motor Corp. was sued today in Los Angeles federal court for failing to disclose to investors that there was a major design defect in the automaker's acceleration systems.

The proposed class action complaint, filed in U.S. District Court in downtown Los Angeles by a San Diego law firm on behalf of all purchasers of Toyota publicly traded securities, accuses Toyota, certain of its affiliates and certain of their officers and directors with violations of the Securities Exchange Act of 1934.

The suit alleges that Toyota issued "materially false and misleading statements" regarding its operations and its business and financial results and outlook when the company knew it had a design problem.

"Defendants misled investors by failing to disclose that there was a major design defect in Toyota's acceleration system, which could cause unintended acceleration," the lawsuit, filed by the firm Coughlin Stoia, alleges.

"As a result of defendants' false statements, Toyota's securities traded at artificially inflated prices - reaching a high of $91.78 per share on Jan. 19."

Toyota's stock price had fallen to $73.49 per share on Feb. 3.

Toyota was also sued Friday in Los Angeles County Superior Court on behalf of all affected owners of the 2010-year Prius and the 2010 Lexus HS250h hybrid. Both models share the same braking system, which has been the object of consumer complaints.


FindLaw in Class Action?

Saturday, January 16th, 2010

A comment came in yesterday about a possible class action suit against FindLaw. I didn't publish it because it was a blatant advertisement for a couple of firms who bizarrely thought I created this blog so that they could freely advertise. Go figure.

But the ad itself is worth discussing so it now follows with the names of the law firms redacted.

The potential class deals with FindLaw promising attorneys that it will put them on the first page of Google, which, of course, is impossible to do for all of your clients if you have more than a few clients and you use normal keywords. Lawyer search service hustlers are pretty much everywhere these days, and slime predominates from WhoCanISue and SueEasy to FindLaw, to MalpracticeLawOffice and AnAttorneyForYou amongst the gazillion companies sleazing their way across the web.

The redacted version of the ad, originally submitted on the post on how to save thousands of dollars a year by dumping FindLaw, looks like this:
We understand that many attorneys are dissatisfied with services and products provided by FindLaw. Many laws firms have told us that their business dealings with FindLaw did not come close to meeting their expectations. For example, we have been informed that FindLaw made promises about placement on the "first page" of search engines that were not delivered?

Attorney [redacted] and [redacted] have joined forces to investigate any potential causes of action that may flow from FindLaw's business dealings with lawyers across the United States. A number of attorneys have contacted us and have asked to retain our services, therefore we are in the process of gathering more information and documentation to assist us in our investigation. Any feedback, documentation and suggestions that you would like to share with us would be greatly appreciated. We are also looking for experts in the areas of legal marketing and the Internet.
If you would like to learn more about this matter or offer your assistance, please click on the link below in order to connect with our law firms. You can expect to receive a prompt and confidential response. [redacted]
While I certainly see the anger in those that wasted big bucks with FindLaw, such a suit on these terms seems to be a no-win situation since the actual contract that the lawyers signed with FindLaw would govern, there are unlikely to be any such written "first page" assurances, and the verbal assurances (even if admissible given the existence of a written contract) would likely differ from case to case. That would tend to be problematic given the need for common questions of fact for the victims in a class action.

It would also be problematic given the sophisticated nature of the potential plaintiffs and the fact that only a moron would believe every customer could be on the first page.

To the lawyers that tried to use my blog to chase clients: If you want to chase, do it on your own dime.

While the above class action seems to be a likely loser, there may be another avenue to explore. If lawyers want to claim that FindLaw's dreck-blogs tarnishes their reputations (as well as the reputations of every other attorney in the country) and constitutes a breach of contract, then more power to you. Perhaps a suit lies in such a claim and I wish you well in nailing them to the wall for their scuzzy conduct. Here is a copy of the FindLaw Master Agreement.pdf for you to go looking for additional ammunition.

I'm just trying to help. If anyone goes that route, give FindLaw my best regards. If you succeed based on my tip, please remind them where it came from.

Turkewitz v. Yahoo (Part 2: Class Counsel Responds To My Objections With Nonsense)

Tuesday, December 29th, 2009

As I wrote two weeks ago, I'm a member of the class of people victimized by Yahoo! click-fraud, and was stunned at being given the shaft in the proposed settlement. You can read the details of said shafting at that link, but it includes over four million dollars for class counsel -- the lawyers that represented the class of victims -- and virtually nothing for the actual victims. I get zippo in this deal if the judge approves it, which led me to object to the settlement.

When I first wrote, I wondered how class counsel would justify taking the fat fee while the class members got reamed. And I wrote "I look forward to the response to my objection where the attorneys get to state in open court that my interests were protected by giving me nothing."

Well, now they've filed their response to my objections (YahooClassCounselResponse.pdf), as well as the objections of nine other victims. And that response can only be described as moronic. Unless, of course, you prefer the words dopey, dimwitted, inane, pointless, ludicrous, bizarre, and flouting the basic premise of attorney-client relations. Yes, I know that last part isn't a word, but I'm on a roll and I've got a thesaurus. Stay with me here.

In their response, the lawyers counter my objection by saying it was filed by a professional objector, Ted Frank at The Center for Class Action Fairness:
The Turkewitz objection was filed by the "Center for Class Action Fairness" ("Center"), a professional objector to class action settlements. See http://centerforclassactionfairness.blogspot.com/ (blog of the Center for Class Action Fairness discussing three objections it filed in the month of December 2009 alone).
Except that Frank isn't the objector. I am. Frank is counsel. I really shouldn't have to explain this concept to anyone who went to law school and now wants four million bucks in legal fees. If their lawyering is that lame (or feeble, faulty or ineffective -- I've still got that thesaurus out), maybe they deserve zero for a fee.

Let's be clear about this since class counsel can't figure it out: I contacted Frank to handle the objection for me. Frank has familiarity with the laws surrounding class action objections. I toyed with the idea of hiring a matrimonial or real estate lawyer to represent me but, oddly enough, chose someone familiar with the field. Go figure.

They attack Frank, of course, because they can't attack me. I'm a plaintiff's guy. I think class actions under Rule 23 are a highly effective means of dealing with situations like this, and I said so in my court filing. In addition, I've never objected to a class action in my life, despite being involved as a class participant in many. And that appears to be why class counsel tried to shift away from the merits of the argument -- that most victims are being shafted -- to the lawyer representing me.

In fact, the reply papers are so miserably superficial on this point I don't know how it made it past the first draft. Was there more than one draft? There are four separate lawyers listed below the signature line. Did any of them read it? Don't any of these folks know how to edit out awful?

Next up, class counsel disputed my assertion that this suit was about click-fraud. Why bother with another irrelevant and idiotic argument? Likely because they know what they've done to the victims and again need to distract.

You see this suit was about pay per click advertising and it was about misrepresentation, and numerous others have, therefore, referred to this as a suit about click-fraud or misrepresentation. (See, for example: Virtual Blight, eBrandz, and Seeking Alpha.) Yahoo! was alleged to have permitted ads to be displayed in spyware, domain name parking sites, pop-ups, pop-unders ad typosquatting sites. Yuck. I get sick just thinking about where Yahoo! wasted my money.

More importantly, Yahoo! has confirmed that I'm a member of the protected class, making this issue moot as well. Even if I asserted that the case was about Crazy Eddie stock, it wouldn't matter. Because I'm a member of the class and that is what matters. I need not make any showing of individual facts to receive compensation -- assuming that I was getting any compensation which, if you've been reading you know by now, I'm clearly not.

So class counsel figures, I guess, that if you can't beat an objector on the merits then you just try to distract the judge. If you got the facts, after all, you argue the facts. And if you got the law, you argue the law. Class counsel has neither, so they shovel manure. Think the judge will notice?

I'll leave it to Ted Frank to argue the legal merits in a reply and beat the crap out of them further, since they all deserve it.

The issue has been picked up, by the way, by TechDirt and Todd Zywicki @ Volokh (who focuses on Frank, and the reason I chose him).