...Jay Laub December 8, 2010 Business law I Class Action Lawsuits Class action lawsuits, sometimes called “multiple litigation lawsuits”, can be used when many individuals have been injured by the same product or action of a single defendant. The individuals can come together to seek justice when “their injuries have been cause by defective products, including pharmaceutical drugs, motor vehicles and other consumer products, and medical devices. Other types of conduct over which people have sued as a class include consumer fraud, corporate misconduct, securities fraud, and employment practices.” Class action lawsuits are most useful to individuals who by themselves could not bring a lawsuit against a large company because the damage done was relatively small. It enables many people to come together and sue as one “class”, and only one case has to be made on behalf of the group of plaintiffs. Legal fees are significantly reduced when the case only has to be made once, even if the damages to each individual in the class were very small. If, for instance, a company was to sell a mouthwash that did not work as it was supposed to, one person would probably not attempt to sue for damages if the amount was only twenty dollars. If one million people who are entitled to remuneration of twenty dollars each come together, it becomes feasible to sue the make of the mouthwash when twenty million dollars is at stake. A class action lawsuit can occasionally be of some benefit to corporations...
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...Class Action Law Suits Allen R. Yates One of the most fascinating aspects of business law is the class action lawsuit. I find this intriguing because class action law suits are often litigated on the same principles as other types of civil action suits, however, the outcome of the class action lawsuit often may have a deep impact on our society, as well as our legal system as a whole. In a normal civil lawsuit, where the plaintiff is the victor, said plaintiff is typically well compensated for their respective damages. Thus it can be viewed that is how justice is served in these cases. In the class action lawsuit where the plaintiffs win, often the individual is not proportionately compensated for their damages as compared to the victor in the average civil suit. In fact there have been class action law suits that have been held in favor of the plaintiffs, damages have been rewarded by the courts, but the individual did not receive a cent of monetary compensation. Yet, in these cases, justice has still been adequately served on the basis of morality. . In this paper, we are going to take a look at class action lawsuits. This paper will cover the history of class action lawsuits, what exactly a class action law suit is, how a class action suit is filed, and we’ll take a look at some of the more famous and impacting class action lawsuits in our nation’s history. The history of most of the United States legal system is deeply rooted in the heart...
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...promotions. 2003 - Attorneys for the women filed a motion for class certification and asked the judge to rule the case can go to trial on behalf of all women who worked for Wal-Mart in the United States at any time since December 26, 1998, a group believed to exceed 1.5 million current and former female employees. 2004 - U.S. District Judge Martin Jenkins ruled the lawsuit can proceed as a nationwide class covering the women who worked at 3,400 stores, but did not decide the merits of the lawsuit. 2010 - A U.S. appeals court based in San Francisco, by a 6-5 vote, upheld the judge's conclusion that it would be better to handle the case as a single group rather than requiring individual lawsuits to be litigated. 2010 - Wal-Mart appealed to the Supreme Court. It argued claims involving current and former workers, hourly employees and salaried managers and stores across the country were too different to proceed as one class-action lawsuit. 2010 - The Supreme Court said it would decide whether the class-action certification violated federal rules for such lawsuits, one of the most important employment discrimination class-action cases in decades. 2011 - The Supreme Court heard one hour of arguments in the case by an attorney representing Wal-Mart and an attorney for the women. The justices, who sharply questioned both sides, then took the case under consideration. 2011 - The Supreme Court rejects class-action status for the female employees, accepting Wal-Mart's main argument...
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...because of its heat resistance. During the past three years, two claims were filed against Danle by automotive mechanics and surviving family members seeking recovery because of their alleged exposure to asbestos. The following information summarizes Danle’s exposure to the two asbestos claims over the past three years. The amount of damages sought in the complaints is considered material to Danle’s financial statements for each period presented. Fiscal Year 2008 In November 2008, Danle was served a complaint in the U.S. District Court alleging that 50 mechanics suffered severe illnesses that led to death or disability as a result of exposure to asbestos from parts manufactured by Danle. The case was brought against Danle as a class-action lawsuit seeking damages totaling approximately $100 million. Danle did not believe the asbestos used in the manufacturing of the brake shoes and gaskets led to the mechanics’ illnesses and immediately retained external legal counsel to vigorously defend the claim made against Danle in this complaint. Since this legal matter was in its early stages of discovery and development, Danle determined that (1) the risk of potential loss at that time was remote and (2) no amount of potential damages could be reasonably estimated. Therefore, Danle made no disclosure of the legal matter in its Form 10-K for the year ended December 31, 2008. Fiscal Year 2009 In October 2009, Danle was served a second complaint alleging that an additional...
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...gaskets because of its heat resistance. During the past three years, two claims were filed against Danle by automotive mechanics and surviving family members seeking recovery because of their alleged exposure to asbestos. The following information summarizes Danle’s exposure to the two asbestos claims over the past three years. The amount of damages sought in the complaints is considered material to Danle’s financial statements for each period presented. Fiscal Year 2008 In November 2008, Danle was served a complaint in the U.S. District Court alleging that 50 mechanics suffered severe illnesses that led to death or disability as a result of exposure to asbestos from parts manufactured by Danle. The case was brought against Danle as a class-action lawsuit seeking damages totaling approximately $100 million. Danle did not believe the asbestos used in the manufacturing of the brake shoes and gaskets led to the mechanics’ illnesses and immediately retained external legal counsel to vigorously defend the claim made against Danle in this complaint. Since this legal matter was in its early stages of discovery and development, Danle determined that (1) the risk of potential loss at that time was remote and (2) no amount of potential damages could be reasonably estimated. Therefore, Danle made no disclosure of the legal matter in its Form 10-K for the year ended December 31, 2008. Fiscal Year 2009 In October 2009, Danle was served a second complaint alleging that an additional 100 mechanics...
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...Takata’s Faulty Airbags Still Exact Toll as Recalls Lag Suggestions; 1: I believe that in order to lower the toll of faulty airbags, the drivers should beware of how they are driving. Drivers should be more focused on their safety then answering phone calls and texts. During an inspection, when the driver is informed that their airbag is defaulted they should order a new air bag and during the waiting time frame try to use a different transportation, and if there is no other source of transportation, then be extra careful when driving. Such as no texting, no speeding, no answering calls. 2. What the airbag company should do is get affiliated with well build car mechanics and have them change the airbag for them instead of the company doing it itself. So, when the company is informed about a deflated airbag they should immediately send an airbag to the closest mechanic next to the customer. There the mechanic changes the airbag and his fees will be paid by the company. “The Lawyer Who Became DuPont’s Worst Nightmare” 1. What is PFOA and how did DuPont use it? Is PFOA a danger to the environment? How? If PFOA was/is a danger to the environment, why didn’t DuPont stop using it? PFOA is short for perfluorooctanoic acid. DuPont started purchasing PFOA from 3M for use in the manufacturing of Teflon. 3M invented PFOA just four years earlier; it was used to keep coatings like Teflon from clumping during production. PFOA’s chemical structure made it uncannily resistant...
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...Wal-Mart and the Ethical Dilemma Presented to: Dr. Robert D. Gulbro In completion of MGT 5013 Organizational Behavior Florida Institute of Technology By: Felix Knight Wal-Mart was started by Sam Walton in 1962; the first store was in Rogers Arkansas. By the beginning of the 1970’s, Wal-Mart had grown to 1,500 employees and 44.2 million dollars in sales. The company also went public in 1970. The company’s growth continued throughout the decade, with the employee count reaching 21,000 by 1980 with $1.2 billion dollars in sales. Wal-Mart made its first acquisition, buying 16 Mohr-Value stores. In 1983, the first Sam’s Club warehouse opened followed by the first Wal-Mart Supercenter in 1988. By the end of the decade, the company had over 1,402 Wal-Mart and 123 Sam’s Club locations and $26 billion dollars in sales – an increase of 2,600% over the decade. Today, Wal-Mart is the world’s largest retailer, with $405 billion in sales, over 4,300 stores, and 2.1 million employees (Duke, 2010, p. 0). One hundred shares of Wal-Mart stock purchased for $1,650 when the company went public would have grown to 204,800 shares worth over $10.1 million as of July 9, 2010 for a return of 613,431% (“Dividends & stock splits”, 2010, July 9) (“Wal-Mart (WMT) stock quote” 2010, July 9). Daft (2008) stated “Wal-Mart is the largest retailer in the United States” (p. 129). Wal-Mart’s 2010 annual report provides the mission statement of the...
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...production of new vehicles. Competition in this market has waned in recent years. Many competitors exited the business in the economic downturn and few have returned because of the capital-intensive nature of the manufacturing process. In 20X1, the Department of Justice (DOJ) launched an investigation involving MMC and two additional auto parts suppliers, alleging anticompetitive behavior involving price collusion between suppliers. Shortly after the DOJ investigation commenced, a number of customers formed a class-action lawsuit against the three suppliers, alleging that the suppliers fixed prices and overcharged customers as a result of these anticompetitive behaviors. Certain entities opted out of the class-action lawsuit and separately undertook legal action against the individual suppliers, including MMC. These entities are existing customers of MMC. In 20X2, MMC reached a settlement (the “First Settlement”) with several of those entities that opted out of the class action lawsuit (the “Plaintiffs”). The terms of the First Settlement provide that MMC will pay the Plaintiffs payments of: * $20 million — consisting of $10 million due in 20X3 and $10 million due in 20X4. * $10 million — structured in the form of a volume incentive payment whereby the Plaintiffs, as a group, will receive a 5 percent rebate on their purchases during 20X3 in an amount not to exceed $10 million. All payments are paid to the law firm representing the Plaintiffs, which disburses the funds...
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...Unit4 - Individual Project Robert Sprankle Lower Division Capstone: BUSN300 - 1303B - 04 Rodney.Cullifer September 22, 2013 Abstract Sam Walton, the founder of Wal-Mart, grew up poor in a farm community in rural Missouri during the Great Depression... The poverty he experienced while growing up taught him the value of money and to persevere. After attending the University of Missouri, he immediately worked for J.C. Penny where he got his first taste of retailing. He served in World War II, after which he became a successful franchiser of Ben Franklin five-and-dime stores. In 1962, he had the idea of opening bigger stores, sticking to rural areas, keeping costs low and discounting heavily. The management disagreed with his vision. Undaunted, Walton pursued his vision, founded Wal-Mart and started a retailing success story. When Walton died in 1992, the family's net worth approached $25 billion. Today, Wal-Mart is the world's #1 retailer, with more than 4,150 stores, including discount stores, combination discount and grocery stores, and membership-only warehouse stores (Sam's Club). Learn Walton's winning formula for business. Rule 1: Commit to your business. Believe in it more than anybody else. I think I overcame every single one of my personal shortcomings by the sheer passion I brought to my work. I don't know if you're born with this kind of passion, or if you can learn it. But I do know you need it. If...
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... racial discrimination, unsupportive pay scale, and the outsourcing of American jobs by the closing of small businesses. Introduction I. Wal-Mart leads you to believe that they are an equal opportunity employer, while white men fill the majority of management positions. II. Wal-Mart states that they are one of the top paying employers with full-time benefits, yet the majority of their employees are keep under part-time positions. III. Many small businesses are forced out of business due to false price-cutting by Wal-Mart. (Transition: Wal-Mart can hurt the people it comes in contact with in many ways, including its own employees, starting with the women.) Body I. Wal-Mart is currently involved in the largest class-action lawsuit in history. A. 1.5 million women are suing Wal-Mart for gender discrimination in management hiring practices. i. Started with 6 women suing Wal-Mart in 2001. B. In its 6-5 ruling, the 9th Circuit U.S. Court of Appeals said the world’s largest private employer will have to face charges that it pays women less than men for the same jobs and that female employees receive fewer promotions and have to wait longer for those promotions than male counterparts. C. Women consist of 62.1% of all of Wal-Mart’s employees; yet hold only 33.6% of the managerial positions. (Transition: Women are not the only employees being discriminated against at Wal-Mart, racial minorities have also been affected...
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...that could potentially employ them in executive positions. Lastly, this paper will identify those key to providing a shift in what executives are believed to possess. Scope In an effort to provide readers with new information and insight into the challenges and problems that exist for women to attain an executive position several different credible sources will be leveraged, including Gartner search group, Harvard Business School, About.com and many other sources. By leveraging research that has already been conducted as well as reviewing information that has been shared regarding this topic this will serve as a basis of determining information that has been already introduced and the identification of new information. Approach Action research will be conducted to gather information and data around companies which have women in executive positions and the efforts taken to put them in the executive positions. Background Women in...
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...Team C Learning Team Reflection: Week 6 RAC Brief – Case 2 Donald Britt, Lauren Batinich, Linda Carucci, Megan Johnson, and Gene McCutchen Law/531 June 8, 2015 Robert Reimer Learning Team Reflection: Week 6 – Case 2 The second learning objectives for this week concerns domestic and international business activities. The Team Assignment this week is to write a case brief using the IRAC method concerning the legal risks associated with domestic and international business activities, as well as, explain how the legal concepts in the chosen case applied in a business managerial setting. Case: On July 10, 2014, a class action lawsuit was filed by Dennis Gray Trucking, Carmichael Leasing, and GTL Enterprises against Navistar International in the United States District Court for the Northeastern District of Illinois Eastern Division (Jaillet, 2014). The Plaintiffs allege that the Defendant knowingly sold EGE-only MaxxForce engines which were defective. In addition, Plaintiffs allege that the Defendant concealed those defects from all individuals who purchased said engines (Jaillet, 2014). Issue: Did Navistar International sell defective products and conceal the defects? Rule: Under the Consumer Product Safety Act (CPSA) there are federal statutes which regulate potentially dangerous consumer products and are created by the Consumer Product Safety Commission (Chessman 744). These statues are enforced through consumer product safety alerts to ensure all consumes...
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...emergency and non-emergency situations. The company is a regional powerhouse covering 3 states and maintaining approximately 4000 employees and a fleet of ambulances, helicopters, and other transportation vehicles. The firm was recently designated as the largest privately owned ambulance service provider in the U.S. Of the three original founders, Zuschlag remains active CEO of the company. When a company becomes this big, especially in the medical field, ir must constantly be worried about liability. Unfortunately, Acadian is no stranger to lawsuits. Over the course of the company’s 45-year history, there have been numerous lawsuits brought against them for various reasons. One of the most recent and possibly most notable cases: a class action lawsuit claiming customers had been over-charged at one...
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...on fast returns, and that this negatively impacts their long term capital budgeting. Can you suggest a company, or industry, where this appears to be true. How? Why? Instant gratification is important in today’s society. People do not have the time in their busy lives to wait on much. Companies also focus on instant gratification and make decisions to help bring in quick returns to satisfy investors. Strong or growing earnings per share is important for investors. Some industries will make decisions that may not be long termed oriented to keep from reducing earnings per share and return on investment. A great example is General Motors. General Motors went a bit too far and had a class action suit against them. They settled in 2008 for $303 million to its shareholders. “The two-year-old class-action lawsuit stems from claims that GM issued false and misleading statements about its finances to artificially inflate the company’s stock price and debt securities “(General Motors 2005). The problem with short term orientation is that the company may take money from other areas to achieve earnings that are expected of them. This money can come from research and development or advertising and have a long term effect on the company. It is still important to keep an eye on short term gains to earn capital that the company needs to provide for its long term goals, but the company still needs to focus on long term and sustainability. Do the recent problems at Toyota suggest that the problem...
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...was an appeal from the Ninth Circuit’s, which that court ultimately by narrow 5-4 decision, affirmed the district court’s decision to certify a class action lawsuit. The plaintiff class included 1.6 million women who currently work or previously worked for Walmart stores, which included Betty Dukes as the lead plaintiff. Dukes and the other employees claimed gender discrimination in pay and in promotion policies and practices in Walmart stores. Walmart is the nation’s largest private employer. The company operates more than 3,500 stores and more than one million employees at their stores. Pay and promotion decisions at Walmart are generally delegated to local mangers’ broad discretion alike any other company. In every Walmart there is a policy against discrimination in making employment decisions. Betty Dukes, a 54 year old woman at the time, was a current employee at Walmart in California. In 2000, she alleged sex discrimination. Betty Dukes had worked there for six years and had positive performance reviews. She was denied in training that she needed for advancement to a higher salaried position. Walmart and Dukes quarreled with a female Walmart supervisor and was restraint for returning late from lunch breaks in the past. Three individual plaintiffs, who were employees of Walmart joined together and brought a class action lawsuit against Walmart, a year later in June 2001, in San Francisco’s United States District Court. The plaintiffs searched to get 1.6 million women...
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