Class Action Roundup – April 15

We’re halfway through April and almost done with tax season already! You’ve already done some great work this month, but now it’s time to take a little break and check out the top class action news from around the web. Get cozy, because it’s roundup time.

Judge Turns Down Lyft Settlement Proposal

Lyft was met with a rude awakening in California when Judge Vince Chhabria turned down the company’s settlement proposal, saying it “shortchanged” the drivers. Chhabria shut down Lyft’s attempt to end the dispute, saying that the proposed $12.25 million settlement wasn’t reasonable and that to totally reimburse the drivers would take more than $126 million. He also said that there was no non-monetary relief that could make up for such a low settlement. The lawsuit was filed in 2013 on behalf of Lyft drivers who believed they should be considered employees and not independent contractors. Thanks to Abigail Tracy over at Forbes for this great article on the subject.

Allstate Can’t Buy Off Lead Plaintiff

In an article by Bob Egelko at sfgate.com, we learn that lower courts are beginning to apply a Supreme Court precedent that doesn’t allow companies to escape class actions by simply buying off lead plaintiffs. That’s what makes this case against Allstate a little more interesting. The lawsuit claimed that Allstate violated the Telephone Consumer Protection Act by robocalling consumers without their permission. Allstate quickly offered to settle with the lead plaintiffs and asked for the case’s dismissal. The thought behind this move was that if the lead plaintiffs received as much or more than they could win in court, all damages would be paid and there would be no point for them to carry on with their lawsuit. Companies made a routine of paying off lead plaintiffs as a way to avoid class actions until the Supreme Court realized that class actions were the only way to grant relief to the majority of people affected.

Philip Morris Wins Marlboro Light Class Action

A class action claiming that Philip Morris tricked consumers into thinking that its Marlboro Light cigarettes were safer than regular cigarettes has ended in favor of the defense. According to the lawsuit, Morris advertised Marlboro Lights as a healthier alternative to regular cigarettes since they contained less tar and nicotine. The “lower tar and nicotine” and “light” labels were removed in 2003, according to Morris, and the fact that they had less tobacco and longer filters made them different from their regular cigarettes. Check out this article for more detail and insight. Thanks to Jennifer S. Mann of the St. Louis Post-Dispatch.

Carnival Faces Lawsuit Over Cuba Cruise Regulations

Have you ever heard about those strange laws that were necessary at some point but ended up fading into obscurity? Like how in California you can’t eat a frog that dies in a frog jumping contest? Stuff like that. While not quite that ridiculous, this next case is a little bit like that. Carnival is being sued because its Fathom cruise line won’t take Cuban-born Americans on its upcoming cruise to Cuba. The plaintiffs are claiming that Carnival is violating their rights by discriminating against them because of their national origin. Carnival claims that it is simply due to a regulation in Cuba that doesn’t allow anyone who was born in Cuba to arrive in Cuba by ship. Planes are fine, just not boats. Apparently the law stems from the Cold War and doesn’t have much documentation surrounding it. At any rate, it will be interesting to see how this one plays out. Tom Stieghorst over at Travel Weekly has more information here, for the curious at heart.