Category: class actions

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A Guide to Class Action Lawsuits

Class action lawsuits, powerful tool to hold these organizations accountable while empowering individuals to seek justice collectively.

When large corporations or entities act negligently, unfairly, or unlawfully, their actions can harm not just one individual but entire groups of people. For consumers, standing up to such powerful organizations can feel daunting. This is where class action lawsuits come in—a powerful tool to hold these organizations accountable while empowering individuals to seek justice collectively.

This guide will walk you through what a class action lawsuit is, how to file one, and highlight some major recently settled cases.

What is a Class Action Lawsuit?

A class action lawsuit allows one or several individuals, known as the lead plaintiffs, to sue on behalf of a larger group that has been similarly affected. This is particularly useful when the damages suffered by individuals are relatively small, making it impractical to pursue legal action alone. By filing as a group, plaintiffs can streamline legal procedures, reduce costs, and level the playing field against well-funded corporations.

Class action lawsuits cover a broad range of cases, including but not limited to:

  • Defective products
  • Consumer fraud
  • Employment disputes
  • Environmental threats
  • Data privacy and security breaches

They serve to not only secure compensation for the affected parties but also compel organizations to adopt better practices, fostering long-term accountability.

How to File a Class Action Lawsuit

If you believe you are part of a group that has been wronged, here’s a step-by-step guide to filing a class action lawsuit.

1. Identify Common Grievance

The first step is determining whether numerous people have been affected in a similar way. Class action lawsuits typically require that the claims of the group (the “class”) share common legal and factual issues.

2. Seek Legal Counsel

Hiring an experienced attorney is essential. Class action lawsuits are complex, involving intricate legal procedures and extensive documentation. A skilled attorney can assess the validity of your claim, identify others affected, and guide you through the process.

3. File the Case

Once an attorney identifies sufficient grounds for the case, they will file a motion in court to establish the lawsuit as a class action. This process, known as “certification,” ensures the court recognizes the group and specifies who qualifies as class members.

4. Notify Potential Class Members

If the court certifies the lawsuit, affected individuals will be notified, allowing them to choose whether they want to participate. Those who agree will be represented as part of the class in court proceedings.

5. Litigation or Settlement

The lawsuit may proceed to trial, although most class actions are resolved through negotiated settlements. Settlements typically involve monetary compensation, changes to company policies, or both.

Examples of Recently Settled Class Action Lawsuits

To better understand the impact of class actions, here are three notable recent cases that delivered justice to affected groups.

1. The Pet Food Recall Lawsuit ($24 Million Settlement)

Helmer Friedman LLP filed a class action suit against Menu Foods, Nutro Products, Inc., and PETCO after their pet food products were linked to severe kidney damage and even deaths in pets. Thousands of distraught pet owners came forward, resulting in a $24 million settlement. This case simultaneously compensated victims and drew attention to safety protocols within pet food manufacturing.

2. Unlawful Payroll Deductions by U.S. Remodelers ($1.5 Million Settlement)

California-based sales associates of U.S. Remodelers filed a class action lawsuit over unauthorized paycheck deductions. These deductions included fees for permits and penalties for measurement errors made during their work. After litigation, the company agreed to a $1.5 million settlement, ensuring employees were reimbursed and preventing future unlawful deductions.

3. Lemonade Insurance Data Breach ($4.9 Million Settlement)

Insurance provider Lemonade, Inc. faced scrutiny for improperly sharing customers’ sensitive personal and medical data with third parties, including platforms such as Facebook, TikTok, and Snapchat. Affected users came together in a class action lawsuit, resulting in a $4.9 million settlement and a wake-up call for the insurance industry to prioritize data privacy.

These cases underscore the real-world impact class actions can have—not only in compensating victims but also in reforming unethical practices.

Why Class Action Lawsuits Matter

For individual consumers, taking legal action against large entities is often expensive and overwhelming. Corporations know this and may prefer to settle disputes quietly, case by case, rather than face the public scrutiny of a widespread issue.

Class action lawsuits balance the scales of justice. They grant consumers collective power to challenge unlawful or negligent behavior, influence positive change within industries, and ensure accountability for wrongful acts.

Important Disclaimer: Any legal process—especially one as complex as a class action lawsuit—requires professional guidance. If you believe you’ve been harmed by the actions of a company, consult with an experienced attorney with a proven record of successful class actions cases.

Take Action

Class action lawsuits demonstrate that justice is possible, even against powerful corporations. The team at Helmer Friedman LLP is committed to protecting the rights of consumers, employees, and patients. If you’ve been affected by unsafe products, unfair practices, or data breaches, our experienced attorneys can help you explore your options.

Contact us for a free consultation today and take the first step toward justice. Together, we can hold negligent companies accountable.

Filing a class action lawsuit isn’t just about compensation—it’s about creating lasting change. Stand up, speak out, and demand accountability.

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Disneyland Workers Recover $233 Million in Wage Theft Class Action Lawsuit

Unions - collective bargaining, class actions.

The Dire Plight of Disneyland Workers and the Importance of Labor Law Enforcement

In 2018, a disturbing report from Occidental College indicated a grim reality concerning Disneyland employees. Findings pointed out a 15% plummet in real hourly wages from 2000 to 2017. Consequently, three-quarters of the employees did not earn enough to cover basic necessities, and over half the workforce lived under continuous eviction concerns. Even more startling, one in ten employees had experienced homelessness within the previous two years.

Meanwhile, the Disney CEO enjoyed an enormous paycheck of $65.6 million in 2018, highlighting the stark wage disparity in the company. Fortunately, this injustice spurred the Anaheim voters into action by approving Measure L, or the Living Wage Ordinance, which pushes for a progressive increase in the minimum wage of hospitality employees benefiting from city subsidies.

However, despite the popular support for Measure L, Disney fiercely debated and resisted its efficient application at Disneyland. This defiance eventually led to a class action lawsuit against Disneyland, which put forth a robust argument that the company still benefited from city subsidies and, hence, should comply with Measure L.

After an initial setback, the Disneyland employees finally triumphed when a California appeal court overturned the initial ruling in 2023, deeming the bond agreement a “city subsidy.” This victory was cemented when the California Supreme Court declined to review the case, leading to a landmark settlement of $233 million for wage theft—the largest in California history.

Such cases of wage theft are far more common than one might think. American workers lose approximately $15 billion annually to minimum wage violations alone, with other forms of wage theft costing an estimated $50 billion annually. However, a dismally small fraction of these stolen wages are ever recovered, which comes down to a lack of resources and scant attention given to wage theft investigations.

Nationally, the Department of Labor recovered only about $3.24 billion in stolen wages from 2017 to 2020. This lack of recovery potential is due in part to the complex nature of class-action lawsuits and the minimal resources available to state and federal agencies responsible for investigating wage theft cases. To further complicate the issue, policies like the Payroll Audit Independent Determination (PAID) program, if reinstated, could enable companies to avoid penalties for wage theft if they self-reported and paid back the stolen wages.

A key driving force behind successful wage theft recovery is the support of experienced employment law attorneys with expertise in class action cases. The Disneyland case exemplifies how these professionals can help employees navigate complex legal avenues to claim their rightful wages. They understand the intricacies of employment law, have the resources to build a compelling case, and have the will to fight for justice.

In conclusion, the Disneyland class action case poignantly reminds us of the wage theft issue plaguing many American workers. There is an urgent need for more robust labor law enforcement, better funding for relevant state agencies, and the crucial role of experienced employment law attorneys in the battle against wage theft.

This article focuses on the amazing reporting of Judd Legum at Popular Information.

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The Power of Class Action Lawsuits: Merrill Lynch’s $20 Million Settlement on Racial Discrimination

Class action lawsuits allow the average employee to band together and get justice from large powerful corporations.

Class action lawsuits are often seen as the vehicle of justice for the average person, allowing individuals to band together to hold even the most formidable, seemingly untouchable companies to account for their actions. A recent case involving Merrill Lynch, a Wall Street brokerage titan, has brought this to light, with the company agreeing to pay nearly $20 million to settle a class-action lawsuit alleging racial discrimination against its Black financial advisers.

This lawsuit claims that African American advisers employed by Bank of America-owned Merrill received less compensation and fewer promotions than their white counterparts. Furthermore, these employees were terminated at higher rates with fewer opportunities for advancement due to discriminatory practices entrenched in the company’s culture.

The repercussions of such systemic violations of African-American employees’ rights had to be addressed. The suit filed in the U.S. District Court for the Middle District of Florida by four former Merrill advisers has set a precedent that even the biggest corporations can be held accountable for racial discrimination in the workplace.

Merrill has agreed to pay $19.95 million — beyond attorney fees and administration costs—to compensate those affected. The settlement is set to benefit approximately 1,375 eligible class members. A judge is yet to approve this settlement, but Merrill has also agreed to “programmatic relief” that includes reviews of diversity practices and pay equity analyses.

Bank of America has stated that the settlement allows them to focus on supporting Black financial advisers and their clients. Over the past decade, they have implemented policies and programs to improve diversity and inclusion. This initiative has resulted in an over 40% increase in the number of Black financial advisers at Merrill and a significant upturn in team representation.

The case against Merrill Lynch is not an isolated incident. They have faced similar allegations in the past, resulting in a $160 million settlement in August 2013. These cases underscore the power of class action lawsuits in ensuring even the most powerful entities are held accountable for their actions.

In the fight against race discrimination, class action lawsuits prove time and again that no company is too large or too powerful to be immune from legal recourse. This not only brings justice for those wronged but also forces companies to examine and modify their practices to ensure a more inclusive and equitable workplace.

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Helmer Friedman LLP Takes Cases To U.S. Supreme Court

Helmer Friedman, Crystal Lightfoot presents case to U.S. Supreme Court. On November 8, 2016, the U.S. Supreme Court heard oral argument in a case Helmer Friedman LLP successfully convinced the high court to hear.  The case — Lightfoot v. Fannie Mae, Cendant Mortgage Corporation case (14-1055) — concerns whether individual homeowners who have been wrongly or fraudulently foreclosed upon by Fannie Mae have the right to sue the mortgage giant in the state courts.

According to the Supreme Court, approximately 7,000-8,000 petitions for a writ of certiorari are filed each Term and the Court grants and hears oral argument in merely 80 of those cases – about 1%.

If you want to check out our petition for a writ of certiorari which got the ball in motion for this oral argument, you can read it here http://www.helmerfriedman.com/docs/Petition-Writ_Crystal-Lightfoot-v-Cendant-Mortgage.pdf

If you care to read all of the documents and commentary about the case,you can check it out here https://www.helmerfriedman.com/us-supreme-court-grants-petition-certiorari/

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Wage and Hour Class Action Lawsuit Filed Against Tatitlek Support Services, Inc.

Helmer Friedman LLP Employment Class Action Specialists and The Cowan Law Firm filed a class action lawsuit against Tatitlek for alleged unpaid wages and missed meal periods and rest breaks regarding the personnel that it provided to the Marine Corps at Twentynine Palms. Andrew H. Friedman of Helmer Friedman LLP — 310-396-7714 — invite witnesses with any information to contact us.