Scores of dealers throughout the United States filed a $50 million class action lawsuit against Carfax, accusing the vehicle history report company of violating antitrust laws with anticompetitive business practices.  The lawsuit alleges, among other things, that out of the 40 used-car certification programs run by automobile manufacturers, Carfax has 37 exclusive agreements.  In addition, Carfax maintains exclusive listings with Cars.com, AutoTrader.com and other popular used-car sites, consequently creating a monopoly and forcing dealers to use Carfax vehicle history reports for their certified used cars. 

Carfax agreed to a settlement with consumers last year for a previous class action lawsuit which alleged that Carfax violated consumer protection laws by failing to properly disclose the terms, conditions and limitations of its Carfax Vehicle History Reports.

The U.S. class action system often unites major corporations in opposition to what they view as its excesses.  But an antitrust case against the four largest railroad companies pits major businesses on both sides. 

A three-judge panel at the U.S. Court of Appeals for the District of Columbia Circuit heard arguments on May 17 over a district court judge’s decision in June to allow the case to move forward as a class action. If affirmed, the class would include some 30,000 shippers seeking billions of dollars for alleged overcharges for a period from July 1, 2003, to December 31, 2008, through the imposition of a uniform fuel surcharge. Read more…

A shareholder class action complaint has been filed against Vitamin Shoppe, Inc.  (NYSE: VSI) alleging the company issued materially false and misleading information regarding its operations, business trends and same-store sales trends.   The class action lawsuit was filed in New Jersey federal court on behalf of purchasers of Vitamin Shoppe between May 8, 2012 and February 25, 2013. Read more…

California federal judge Irma E. Gonzalez approved The Kellogg Company’s revised $4 million class action lawsuit settlement concerning alleged false advertising of the cognitive benefits of its Frosted Mini-Wheats cereal.  Previously, the Ninth Circuit rejected a $10 million settlement deal.

The prior settlement would have provided $5.5 million in food to charities that feed the indigent, but it was denied in July 2012 based on the cy pres doctrine governing the distribution of unclaimed funds.  Cy pres requires an “as near as possible” connection between the settlement beneficiaries and the claims at issue.  Read more…

A federal judge approved a $40 million class action settlement Monday between Skechers USA Inc. and consumers who bought toning shoes after ads made unfounded claims that the footwear would help people lose weight and strengthen muscles.  U.S. District Judge Thomas B. Russell in Louisville approved the deal, which covers more than 520,000 claims.  About 1,000 people eligible for coverage by the settlement opted not to take part.

Those with approved claims will be able to get a maximum repayment for their purchase — up to $80 per pair of Shape-Ups; $84 per pair of Resistance Runner shoes; up to $54 per pair of Podded Sole Shoes; and $40 per pair of Tone-Ups.  Russell also awarded $5 million for the attorneys in the case to split. Russell ordered that the money cannot come from the $40 million settlement fund set aside for consumers. Read more…

Two of Ohio’s largest public retirement systems are getting part of a $153 million settlement from Fannie Mae and its former auditor KPMG over claims it misled investors more than a decade ago.  The Ohio Public Employees Retirement System and the State Teachers Retirement System of Ohio served as lead plaintiffs in the classaction lawsuit accusing the companies of publicly issuing false and misleading financial reports that inflated the price of Fannie Mae’s securities.  The settlement must be approved by the U.S. District Court in Washington, D.C.  Read more…