Citigroup, the third largest U.S. bank by assets, agreed to pay $730 million to settle claims it misled debt investors about its condition during the financial crisis. The deal would resolve a lawsuit by investors who bought Citigroup bonds and preferred stock from May 2006 through November 2008. The settlement requires requires court approval and according to the bank, is covered by existing litigation reserves. Read more…
Class Actions Blog
Citigroup agrees to pay $730 million to settle securities fraud class action
Judge denies Allscripts motion to dismiss doctor’s class action
Miami-Dade County Circuit Court Judge John W. Thornton denied Allscripts Healthcare Solutions’ motion to dismiss a class action lawsuit filed against it by physicians who use its MyWay electronic health records (EHR) system. Chicago-based Allscripts (NASDAQ: MDRX) was hit with a lawsuit on December 20 by Panama City-based Pain Clinic of Northwest FL, on behalf of about 5,000 small group physicians who used MyWay until the company announced late last year that it would stop supporting the system. The clinic claims that the EHR did not work as intended, and that the forced switch to another records system carries substantial costs for medical practices. Read more…
Hertz sued in class action for overcharging customers
A class action complaint has been filed against The Hertz Corporation and its subsidiaries alleging the car rental company illegally overcharged its customers. The complaint, filed in the United States District Court for the Southern District of New York, alleges Hertz breached New York and other state regulations by providing customer coupons and discounts, although still imposing sales tax on the pre-sales total. This questionable business practice has caused many customers to overpay their rentals, the complaint asserts.
Many states, including New York, have passed laws prohibiting these practices in an effort to shield consumers from business decisions that seek to rip off customers using the tax code. The class action lawsuit is asking Hertz to comply with these regulations and compensate class members who have been overcharged.
U.S. Supreme Court rules in favor of investors
Plaintiffs alleging companies made material misstatements in securities fraud cases won an important ruling on the requirements for class certification from the U.S. Supreme Court on Wednesday. The court ruled in a 6-3 decision that plaintiffs in such cases may obtain class certification without having to prove a misrepresentation materially affected the stock price. The opposite approach would “put the cart before the horse,” Justice Ruth Bader Ginsburg wrote for the majority. Read more…
Beer drinkers file class action against Anheuser-Busch for watering down beer
Beer consumers have filed a proposed class action lawsuit accusing Anheuser-Busch InBev of watering down so-called “King of Beers” Budweiser and other alcoholic beverages to boost profits, attorneys for the plaintiffs said on Tuesday.
The lead lawsuit, which the company dismissed as groundless, says the alcohol content is mislabeled on the brands Budweiser, Michelob, Michelob Ultra, Hurricane High Gravity Lager, King Cobra, Busch Ice, Natural Ice, Bud Ice, Bud Light Platinum and Bud Light Lime. Read more…
Dell private buy-out prompts class action
A Dell Inc. shareholder launched a class action on January 30, 2013, aiming to block the $24.4 billion leveraged buyout of the computer maker hatched by its founder and a private equity firm, alleging the “opportunistic” deal shortchanges investors.
In a complaint filed in Delaware Chancery Court, Catherine Christner said the $13.65 per-share offer from Michael Dell and Silver Lake Partners LP to take the company private — one of the largest leveraged buyouts since the financial crisis — robs investors of the chance to benefit from recent moves.
