News in Brief July 18 – McAfee, Herbalife and More

McAfee Settles Auto-Renewal Lawsuit

McAfee has agreed to pay $80 million to settle a proposed class action that claimed it illegally auto-renewed customers’ subscriptions at prices that were higher than advertised. According to the suit, McAfee also marketed its discounts using incorrect past price references, making customers think they were saving more than they actually were. If the settlement is granted final approval, anyone who paid for the automatic renewals between January 10, 2010 and February 10, 2015 will be able to claim $11.50 from the settlement.

Fitbit Can’t Escape Sleep Tracker Suit

A federal judge in California has denied Fitbit’s attempt to dismiss a proposed class action that claims customers paid more for sleep-tracking functions that don’t even work. Fitbit argued that their claims about the sleep trackers wouldn’t mislead reasonable customers. Judge James Donato stated, however, that Fitbit and its customers have different views on how the technology is supposed to work and that the case necessitates a closer look.

Herbalife Settles with the FTC

Herbalife is set to pay the Federal Trade Commission (FTC) $200 million to settle claims that it set up an illegal pyramid scheme. The FTC stated that Herbalife will have to completely restructure its business model in addition to making the payment, which will go toward compensating the consumers it allegedly misled. Herbalife maintains that its business model is fine and that it chose to settle to avoid further litigation expenses.

Lawsuit: Verizon Refuses to Honor Promotional Incentives

Verizon Communications Inc. is facing a putative class action in New Jersey that claims the company failed to give its customers the incentives it promised. According to the complaint, Verizon began a promotion with the promise of various goodies (from gift cards to tablets) for NJ customers who signed up for its FiOS service – but the rewards never came. The lawsuit is looking to compensate those who were left without their promised promotional gifts.

Wendy’s Data Breach Lawsuit Dismissed

A federal judge in Florida has dismissed the data breach lawsuit against Wendy’s. Judge Paul G. Byron found that the plaintiff lacked standing to blame the fraudulent charges on his debit card on the Wendy’s data breach. But that doesn’t mean we’ve seen the end of this lawsuit. Byron dismissed the case without prejudice, meaning that someone else could file the lawsuit again after changes are made to the complaint.

Bimbo Bakeries Faces Wage and Hour Lawsuit

Bimbo Bakeries is facing a putative class action brought by a group of delivery drivers who claim they weren’t paid proper overtime wages. The complaint says Bimbo violated the Fair Labor Standards Act and New Jersey Wage and Hour Law by only paying drivers a flat rate plus commission on sales, regardless of the number of hours they actually worked. The drivers are looking to recover compensation for the benefits and wages they claim to have lost out on over the last three years.