GlaxoSmithKline Plc agreed to pay about $460 million to resolve a majority of lawsuits alleging the company’s Avandia diabetes drug can cause heart attacks and strokes, people familiar with the accords said.

Glaxo, the U.K.’s biggest drugmaker, agreed to settle about 10,000 suits for an average of at least $46,000 apiece, the people said. The company had been facing more than 13,000 suits alleging Glaxo hid the drug’s heart-attack risk, according to a UBS AG analyst. The settlements come as Glaxo is set to face its first Avandia trial in federal court in Philadelphia in October.

“This is exceptionally good news given the market has discounted $6 billion liability,” for Avandia litigation, Gbola Amusa, an analyst at UBS in London, said in an interview. “We had outlined an absolute worst-case scenario where $500,000 per case would have to be paid.”

Glaxo, the U.K.’s largest drugmaker, is settling Avandia claims as a U.S. Food and Drug Administration advisory panel is meeting today to consider whether Avandia’s ability to control blood-sugar levels outweighs a possible increase in heart attacks, strokes and deaths from cardiovascular disease. Mary Anne Rhyne, a spokeswoman for Glaxo, declined to comment.

Originally posted at Breaking Legal News. Please visit http://www.breakinglegalnews.com/.

A Montgomery law firm has filed a lawsuit against BP, Halliburton and Cameron International for a commercial landowner in Baldwin County.

Beasley Allen Crow Methvin Portis and Miles PC filed the suit on behalf of James E. Fisher and Kate C. Fisher, who own commercially zoned land in Baldwin County, according to a press release.

According to Beasley Allen, the Fishers have incurred damages to their property, earning capacity, business income and use of natural resources due to the Deepwater Horizon oil spill.

“Falling real estate values are just one more consequence of this environmental disaster,” said Rhon Jones, head of Beasley Allen’s Environmental Law section. “People who have purchased property as an investment, or who are simply trying to sell their home will be negatively affected by this oil spill. Even property that is not Gulf-front is impacted by the perception that the entire Gulf Coast has been ruined.”

Beasley Allen has filed several lawsuits in response to the Deepwater Horizon oil spill. They filed a class action lawsuit in April to recoup losses for individuals and business owners on the Gulf Coast. They also filed a lawsuit in June on behalf of scuba company Adventure Sports II and cases for a commercial fisherman and fishing deckhand who work in the Gulf’s waters.

BP has set up a $20 billion compensation fund to cover claims from individuals and businesses impacted by the oil spill that has leaked oil into the Gulf of Mexico and reached the shoreline.

Originally posted at Breaking Legal News. Please visit http://www.breakinglegalnews.com/.

The Canadian law firm ‘Merchant Law Group’ has launched a high profile class action suit against Facebook over the social network allegedly breaching the privacy of its users.

Tony Merchant Q.C stated Friday that “this claim asserts that Facebook shamelessly breached the privacy of people who trusted it.”

Facebook has had a number of legal problems over its privacy policies in recent times – On February 4, 2009, without proper communication to or agreement by its Users, Facebook revised its Terms of Service, asserting broad, permanent, and retroactive intentions to reveal Users’ information, even as to Users who deleted their Facebook.com accounts. The Company stated it could make public a User’s “name, likeness and image for any purpose, including commercial or advertising.” Having met with numerous objections from Users and after being threatened with action by U.S. federal government regulators, Facebook withdrew the proposed changes.

This latest claim alleges that the tools provided by Facebook to Users of the social network are materially misleading and calculated to result in unauthorized breaches of Users privacy and conversion of their personal information, including but not limited to the breach of Personal Information Protection and Electronic Documents Act., 2000, c. 5. and other breaches of statute and common law.

Originally posted at Breaking Legal News. Please visit http://www.breakinglegalnews.com/.

Elizabeth A. Alexander, a partner with the Nashville office of the national plaintiffs’ law firm, Lieff Cabraser Heimann & Bernstein, LLP, and attorney Charles Barrett, of Nashville, announced today that a local owner of a Gulf Coast vacation home has filed a class action lawsuit against BP. The plaintiff, a Nashville resident and owner of beachfront property in Panacea, Florida, brought the class action on behalf of herself and all Tennessee residents who own property on the Gulf coast in Florida, Alabama, Mississippi, and Louisiana, and have suffered economic losses caused by the explosion of the Deepwater Horizon drilling rig and the resulting oil spill.

“The value of properties along the Gulf Coast and rental income for property owners, including owners from Tennessee, have been negatively impacted. BP and other defendants must take responsibility for their losses.”
."This unfolding and unprecedented ecological and economic disaster, the complaint charges, was the result of negligence by BP and the other corporations involved in drilling at the Deepwater Horizon oil rig," Ms. Alexander stated. "The value of properties along the Gulf Coast and rental income for property owners, including owners from Tennessee, have been negatively impacted. BP and other defendants must take responsibility for their losses."

Defendants named in the complaint include BP, PLC, and BP America, Inc., which owns the oil well, Transocean Offshore Deepwater Drilling, Inc., which leases the oil rig to BP, Halliburton Energy Services, Inc., which was engaged in cementing operations at the well, and Cameron International Corporation, which supplied the blowout preventer valves for the Deepwater Horizon oil rig that have failed to activate.

The complaint, entitled Simcox v. BP, PLC, et al., was filed yesterday afternoon in federal court in Nashville, Tennessee. The complaint charges that defendants failed to employ necessary safety measures and technologies to prevent the spill and damage to marine and coastal environments. To read a copy of the complaint, please visit http://www.gulfoilspilllitigationgroup.com/pdf/20100525-tn-complaint.pdf

Originally posted at Breaking Legal News. Please visit http://www.breakinglegalnews.com/.

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.

Originally posted at Breaking Legal News. Please visit http://www.breakinglegalnews.com/.

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.

Originally posted at Breaking Legal News. Please visit http://breakinglegalnews.com/.

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.

Originally posted at Breaking Legal News. Please visit http://www.breakinglegalnews.com/.