On April 12, 2019, Judge Darrow, Chief Judge of the United States District Court for the Central District of Illinois, denied Ocwen’s motion to dismiss Plaintiffs’ claims under the Illinois Consumer Fraud Act (and/or other similar statutes in effect in other states) and claims for unjust enrichment.  Plaintiffs maintain that Ocwen has systematically sought to recover payments from borrowers in excess of the amount a Bankruptcy Court had set pursuant to an approved Chapter 13 plan.

On Thursday, February 28, 2019 at 1:00 p.m. Eastern, KL attorney Michael H. Reed delivered a webinar for the New York State Bar Association. The title is, “New York and FLSA Overtime Law Update.” Information is available here, https://www.nysba.org/store/events/registration.aspx?event=0FW41

On January 29, 2019, Judge Epstein of the Superior Court of the District of Columbia denied the District’s motion to dismiss the entire action by which Plaintiffs maintain that a District law violates the Commerce Clause of the United States Constitution because it only allows semipublic institutions (essentially section 501(c)(3) organizations) with an office in the District to obtain an exemption from sales and related taxes and therefore discriminates against semipublic institutions that reside outside the District.  Specifically, the Court allowed all of Plaintiffs’ claims to proceed except for the claim for injunctive relief.

KL’s case Integritymessageboards.com LLC v. Facebook, Inc. was featured on National Public Radio’s All Things Considered story about “Advertising On Facebook: Is It Worth It?”.  KL partner Seth Lesser is quoted during the story explain KL’s case and can be heard here.

On August 28, 2018, KL filed a case alleging that Facebook deceives advertisers by disregarding their ad targeting parameters in order to maximize the tech giant’s own revenue.   As the complaint  allages, Facebook has long touted its ability to reach an advertiser’s target audience with 89 percent accuracy, but a new investigation suggests that many advertisers experience accuracy rates that are far lower – 60 percent or less, according to one analysis. The lawsuit, brought by KL on behalf of an online investment forum, suggests that many small businesses invest heavily in Facebook advertising only to find that Facebook displays a substantial number of their ads to users outside the target audience they defined in Facebook’s Ads Manager.  The case, brought by KL with co-counsel, is Integritymessageboards.com LLC v. Facebook, Inc., case number 3:18-cv-05286, filed in the U.S. District Court for the Northern District of California.  A copy of the complaint can be found here.

On August  22, 2018, on behalf of a obstetrician/gynecologist, KL sued Cynosure, a manufacturer of medical laser systems.  The complaint asserts that its products which were intended to treat serious illnesses deceptively marketed its MonaLisa Touch devices as safe for “vaginal rejuvenation,” according to a new federal class action lawsuit. The lawsuit followed a warning from the Food and Drug Administration that using laser-based devices for off-label vaginal rejuvenation carry “serious risks,” and that companies like MonaLisa Touch maker Cynosure Inc. have engaged in flagrant “deceptive marketing” to sell these devices.

The lawsuit alleges that Cynosure deceived healthcare providers across the country about the benefits and safety of its MonaLisa Touch. Cynosure touted its MonaLisa Touch as a “treatment that renews intimacy and changes lives” with “virtually no side effects.” But Cynosure failed to mention that while the FDA had cleared this type of device to treat such conditions as abnormal or pre-cancerous cervical or vaginal tissue, the agency never approved the MonaLisa Touch laser for vaginal rejuvenation. The company also did not disclose that laser-based vaginal rejuvenation can cause serious harm. The FDA’s recent warning recognized that laser-based vaginal rejuvenation “may lead to serious adverse events, including vaginal burns, scarring, pain during sexual intercourse, and recurring/chronic pain.” FDA Commissioner Scott Gottlieb, M.D. cautioned that the “deceptive marketing of a dangerous procedure with no proven benefit, including to women who’ve been treated for cancer, is egregious.”

KL’s client is a company headed by Dr. Robert A. Salk, who leased one for his practice in Warwick, RI at a cost of over $200,000. Dr. Salk, a former military physician who is also a clinical assistant professor at Women and Infants Hospital of Rhode Island, the primary teaching hospital in obstetrics and gynecology for Brown University’s medical school, is bringing the lawsuit on behalf of all purchasers or lessors of the device nationwide.

In response to the FDA’s warnings, Dr. Salk and his practice immediately ceased using the MonaLisa Touch device; however, they remain financially liable for the full terms of their lease. In the lawsuit, Dr. Salk and his attorneys detail how Cynosure extensively marketed the probe as safe and meant to be used for vaginal rejuvenation procedures, including through testimonials from women who claimed the MonaLisa Touch solved the issues they had had with physical intimacy. Nowhere in its marketing materials did Cynosure disclose the serious risks associated with using a laser on vaginal tissue.

The lawsuit is Three R LLC v. Cynosure, Inc, case number 3:18-cv-30133, filed in the U.S. District Court for Massachusetts.  A copy of the complaint can be found here.

Since the formation of KL, in Wage & Hour cases in which KL was sole or co-lead counsel, recoveries have exceeded $250 million.  See Cases & Settlements for details.

On February 12, 2018, the Honorable James Lorenz, United States District Judge, approved a settlement KL reached with Petco Animal Supplies, Inc.

to settle claims that Petco has improperly denied its Assistant Managers overtime pay in violation of the Fair Labor Standards Act (“FLSA”) and several applicable state laws. The proposed settlement provides compensation for those AMs who submitted consents to join the lawsuit as well as ASMs who were actively employed as Assistant Managers in for Petco in Colorado, Illinois, Massachusetts, New Jersey, New York, Oregon or Pennsylvania during the following time periods:

• Colorado: between January 15, 2014 and June 18, 2016;
• Illinois: between November 23, 2013 and June 18, 2016;
• Massachusetts: between January 31, 2014 and June 18, 2016;
• New Jersey: between April 6, 2015 and June 18, 2016;
• New York: time between April 14, 2010 and June 18, 2016;
• Oregon: between October 21, 2014 and June 18, 2016; and
• Pennsylvania:  time between July 14, 2014 and June 18, 2016.

July 2017 – At its summer board meeting, KL partner Seth Lesser was elected to join Public Justice’s Board of Directors. Public Justice is the nation’s preeminent organization pursing high impact lawsuits to combat social and economic injustice, protect the Earth’s sustainability, and challenge predatory corporate conduct and government abuses. Mr. Lesser is proud to be able to aid the organization in its fight to ensure that our civil justice system will continue to function to protect us, our families, and our planet. https://www.publicjustice.net/welcoming-public-justices-newest-class-board-members/

On November 2, 2016, the Honorable Douglas Arpert, United States Magistrate Judge, approved a proposed settlement KL reached with Kmart Corporation to settle claims that Kmart has improperly denied its Assistant Store Managers, Hardlines and Assistant Store Managers, Softlines (“ASMs”) overtime pay in violation of the Fair Labor Standards Act (“FLSA”) and applicable state laws. The proposed settlement provides compensation for those ASMs who submitted consents to join the lawsuit as well as ASMs who were actively employed as a Hardlines or Softlines Assistant Store Manager for Kmart in Maryland, New Jersey, New York and/or Ohio for at least one workweek during the following relevant time periods:

• Maryland: July 3, 2010 through June 10, 2016
• New Jersey: July 3, 2011 through June 10, 2016
• New York: March 27, 2009 through June 10, 2016
• Ohio: March 27, 2012 through June 10, 2016