Tagged: Class Action

Equipment Failure: Eastern District of Pennsylvania Denies Certification to TCPA Class Involving Unsolicited Faxes Because TCPA Applies Only to Standalone Fax Machines

In Fischbein v. IQVIA, Inc., a case involving alleged violations of the Telephone Consumer Protection Act (TCPA), 47 U.S.C. § 227(b)(1)(C), a federal district court in the Eastern District of Pennsylvania denied plaintiff Richard E. Fischbein, M.D.’s motion for class certification after he failed to meet his burden on both ascertainability and predominance requirements. Fischbein’s class action suit alleged that the defendant, IQVIA, Inc., a research organization in the health information industry, sent unsolicited fax advertisements to Fischbein and more than 25,000 other healthcare professionals that invited them to share information about their patients and treatment practices in exchange for points that could be redeemed for rewards. IQVIA argued that the proposed class was not ascertainable, because there was no reliable and administratively feasible mechanism to determine whether putative class members received the faxes at issue on traditional, standalone fax machines or through online fax services. Fischbein, however, argued that the TCPA applies to all faxes, no matter how received. The court held that the plain language of the TCPA – which prohibits the use of “‘any telephone facsimile machine, computer, or other device to send, to a telephone facsimile machine, an unsolicited advertisement’” – clearly distinguished between the type of equipment used to send the unsolicited advertisement and the type of equipment that receives...

Sixth Circuit Vacates Certification of a Sprawling Multistate Class of GM Vehicle Owners Alleging Transmission Defects

In Speerly v. GM, LLC , the Sixth Circuit en banc reversed a district court’s order certifying a class and multiple subclasses to assert various state law claims alleging defects in GM’s Hydra-Matic 8-Speed Transmission in vehicle models sold between 2015 and 2019 — in all, 26 state-wide subclasses with a total of 59 state-law claims on behalf of roughly 800,000 individual car buyers. The class had identified two problems with the transmission: (i) the transmission fluid absorbed moisture, changing its viscosity and causing gear shift slippage; and (ii) the transmission control module caused vehicles to lunge forward or “shudder.” Before addressing the substantive elements of each cause of action, the court explained that the district court must “answer merits questions that bear on Rule 23’s demands.” The Rule 23 analysis “will inevitably address issues that overlap with the merits inquiry” because the “element-by-element, claim-by-claim inquiry” required for the commonality and predominance inquiry “implicates the merits of each claim.” Therefore, the Panel noted that the “district court, as a result, must not defer merits questions bearing on commonality and predominance until summary judgment.” Regarding the commonality requirement, the Sixth Circuit explained that under Wal-Mart Stores, Inc. v. Dukes, a common question must resolve an issue that is “central” to the validity of each claim, and...

CIPA Litigation and the “Technological Capability” to Violate California’s Privacy Laws

In Ambriz v. Google, LLC,  a court in the Northern District of California refused to grant Google’s motion to dismiss the plaintiffs’ claims under Section 631(a) of the California Invasion of Privacy Act (CIPA) for (i) “intentional wiretapping,” and (ii) “willfully attempting to learn the contents or meaning of a communication in transit.”  The lawsuit challenges Google’s AI-powered product, Google Cloud Contact Center AI (“GCCCAI”), which is used to support the customer service centers of other businesses by providing a virtual agent with whom callers can interact. The plaintiffs alleged that they placed customer service calls to businesses that use the GCCCAI service – specifically, Verizon, Hulu, GoDaddy, and Home Depot – and spoke with a “virtual agent” and human representative but did not know that Google would be listening in on and transcribing the call. Nor did the plaintiffs consent to Google’s alleged eavesdropping. Google moved to dismiss the CIPA claims on the ground, among others, that it simply provides a software tool to its business clients and was not “an unauthorized third-party listener to the communications between the named Plaintiffs and the customer service centers they called.” In denying Google’s motion to dismiss, the court began its analysis by explaining the split that has emerged in cases interpreting CIPA 631(a): Some courts require...

ChatBot or Not: California Federal Courts Limit CIPA Applicability

The Northern District of California recently issued a decision further constraining plaintiffs’ ability to assert claims under the California Invasion of Privacy Act (CIPA). In Ambriz v. Google, LLC, the plaintiff filed a putative class action alleging that Google violated CIPA § 631(a) because its Cloud Contact Center AI software-as-a-service, a virtual customer service tool, wiretapped, eavesdropped on, and recorded his call to Verizon’s customer service center.

FCC Reverses Course and Finds That Government Contractors Are “Persons” Under the TCPA

Last month, the Federal Communications Commission (FCC) issued an Order on Reconsideration, overturning Commission precedent by clarifying that federal, state, and local government contractors are “persons” under the Telephone Consumer Protection Act (TCPA) and therefore must, under 47 U.S.C. § 227(b)(1)(A)-(D), obtain prior written consent to make certain calls using an automatic telephone dialing system or artificial or prerecorded voice; to initiate a call to any residential telephone line using an artificial or prerecorded voice; to use a fax machine or other device to send an unsolicited advertisement; or to use an automatic telephone dialing system in such a way that two or more telephone lines of a multi-line business are engaged simultaneously. This ruling is the latest in the Commission’s efforts to protect consumers from unwanted robocalls. The TCPA prohibits certain unsolicited calls made by any “person,” which includes an “individual, partnership, association, joint-stock company, trust, or corporation,” without the prior written consent of the consumer. In 2016, the FCC issued a declaratory ruling stating that the federal government and federal government contractors were not “persons” under the TCPA, and therefore, the limitations on calling enumerated in Section 227(b)(1)(A)-(D) did not apply to them. The FCC reasoned that there is a longstanding presumption that the word “person” does not include the sovereign and that,...

Lack of Plaintiff Article III Standing Proves Fatal to Eleventh Circuit in FACTA Class Action Settlement

In a 7-to-3 en banc decision, the Eleventh Circuit vacated a high-stakes $6.3 million class settlement on standing grounds. In James Price v. Godiva Chocolatier, Inc., et al, the court held that a named plaintiff lacked standing to bring a claim under the Fair and Accurate Credit Transactions Act (FACTA) on behalf of a proposed settlement class. The plaintiff, Dr. David Muransky, filed a class action complaint against Godiva claiming a violation of FACTA, which prohibits “merchants from printing more than the last five digits of the card number (or the card’s expiration date) on receipts offered to customers.” After visiting a Godiva retail store in Florida, the plaintiff was handed a receipt that contained the first six and the last four digits of his credit card number–a technical violation of FACTA. The plaintiff claimed that the violation was “statutory in nature” and did “not intend[] to request any recovery for personal injury.” The plaintiff further framed the class’s harm from violations as “irreparable harm as a result of the defendant’s unlawful and wrongful conduct,” and that “Plaintiff and members of the class continue to be exposed to an elevated risk of identity theft.” The putative class was so large that Godiva could have faced statutory damages, punitive damages, and costs of more than $342...

Second District Court to Dismiss Claims Based on Unconstitutional Statute Provision

In Lindenbaum v. Realgy, the United States District Court for the Northern District of Ohio dismissed the plaintiff’s “robo-call” class action under the Telephone Consumer Protection Act (TCPA), based on the Supreme Court’s 2020 holding that a statutory exception for automated calls to collect government debts was unconstitutional. Because the statute was unconstitutional at the time of the alleged violations, the district court determined that it lacked subject matter jurisdiction and dismissed the lawsuit. Originally enacted in 1991, the TCPA restricts almost all prerecorded sales calls to cell phones. In 2015, Congress amended the provision to allow prerecorded calls “made solely to collect a debt owed to or guaranteed by the United States.” 47 U.S.C. § 227(b)(1)(A)(iii). The 2015 provision was struck down in 2020 by the United States Supreme Court’s plurality decision in Barr v. American Association of Political Consultants, Inc. While the Supreme Court struck down the portion of the statute dealing with calls for government debt, it left the rest intact. In Lindenbaum, the plaintiff brought a class action lawsuit alleging violations of the TCPA. Specifically, the plaintiff alleged that she received two prerecorded calls, one to her cellphone and one to her landline, and had not provided express written consent to receive these calls. The plaintiff argued that the severance of the...

Wrap Up of United States Supreme Court’s 2014-2015 Term

With the close of the United States Supreme Court’s 2014-15 term, we offer this wrap up of the Court’s term, focusing on the Court’s most important business and commercial cases (excluding patent cases). Omnicare, Inc. v. Laborers Dist. Council Constr. Indus. Pension Fund: It is widely known that if the registration statement an issuer files with the SEC contains an untrue statement of a material fact or omits to state a material fact necessary to make the statements therein not misleading, then a purchaser of securities sold pursuant to the registration statement may sue the issuer for damages.

Supreme Court Shuts Door on Moldy Washer Litigations

After much anticipation, on February 24, 2014, the Supreme Court rejected, without comment, Whirlpool Corp.’s and Sears Roebuck & Co.’s bids to challenge class certification in litigations involving allegedly defective washer machines. For a discussion of the history of the “moldy washer” cases, click here and here. In denying the writs of certiorari, the Supreme Court declined to disturb the Sixth and Seventh Circuits’ post-remand orders, concluding that Comcast Corp. v. Behrend had “limited application” to decisions where determinations on liability and damages were bifurcated.

Fifth Circuit Denies NLRB Petition to Rehear D.R. Horton

On April 16, 2014, the Fifth Circuit Court of Appeals denied the National Labor Relations Board’s (the “Board” or “NLRB”) petition for rehearing en banc in D.R. Horton, Inc. v. NLRB, thus upholding its December 3, 2013 decision that arbitration agreements prohibiting class or collective actions claims do not violate the National Labor Relations Act (“NLRA”).