2009 – That’s a Wrap!

December 29th, 2009. By LucyC

Well, it’s been a busy year for lawyers—and class actions were certainly popular. Employment class actions, comprised of allegations of unpaid overtime and wages and violations of the Federal Fair Labor Standards Act (FLSA) were among the most commonly filed lawsuits. Seems there’s no shortage of companies willing to fiddle the math. Even the biggies—Costco, McDonalds, AT&T, Marriott, Bank of America, Wells Fargo, UPS, Starbucks, Dominos Pizza—even Hooters! And I could go on. 

Other hot topics in 2009, included Chinese Drywall.

Who in this part of the world (and presumably China) has not heard of Chinese Drywall by now? Estimates suggest that possibly 100,000 people are affected by this toxic home building product, and on December 9, a federal class action was filed against Knauf Plasterboard Tainjin Co. Ltd. (KPT), one of the primary manufacturers implicated in the debacle. 

Overdraft fees were also a topic close to many peoples’ hearts in 2009. Bank Atlantic was one institution hit with a class action for allegedly manipulating the posting dates of consumer debit card and check transactions so they could make more money on customers’ overdraft fees. 

And speaking of fees, the issuers of prepaid debit cards also had their toes to the fire this year, among them Green Dot Visa for allegedly charging high fees on their ‘prepaid debit cards.’ 

Unfortunately, asbestos mesothelioma lawsuits—individual lawsuits not class actions—remained prominent this year. As more retirees are only now being diagnosed with the asbestos-related cancer from exposure in the workplace, many are choosing to sue their old employers. Some couples are suing more than 50 companies at a time.  

But asbestos mesothelioma victims have also seen some big awards. Remember the Buffalo boilermaker who received $3 million as settlement of his suit?  Or the Mahoney’s, whose $20 million settlement was upheld on appeal?  While both parties developed asbestos mesothelioma and no amount is enough, that money will help with the medical expenses. 

Some BIG settlements were also awarded in class actions this year—Metlife among them, forking over $50 million to settle allegations of fraud. And American Investors Life Insurance has also made a preliminary settlement, the amount is not yet determined but could come in between $184 and $530 million. The allegations? Deceptive business practices. 

About 8,500 elderly and disabled Medicaid recipients were awarded a settlement of $27 million in their class action against the state of Florida.  

And, roughly 1000 retired AK Steel workers finally won their eight-year old pension benefits class action and were awarded $51 million.  

One of my personal favorites—a $13.7 million settlement in the class action brought by nearly 700 demonstrators arrested during protests against the International Monetary Fund and World Bank meetings in April of 2000! Civil disobedience does pay after all! Where’s my placard… 

And what list of lawsuits and settlements would be complete without Wal-Mart? In what is being heralded as the largest settlement of a wages class action in Massachusetts history, a record $40 million has been agreed upon as a preliminary settlement in suit.  

No surprise, I could go on—the list is long. But in closing for the year—I would like to mention a couple of “David and Goliath” type lawsuits that could have big implications on settlement. The first is the $2.5 million award to the family of Lyam Kilker, who was born with serious birth defects allegedly resulting from exposure to Paxil during his mother’s pregnancy.

GSK is, of course, appealing the decision but there are reportedly hundreds more suits lined up behind this one and if the verdict stands—it will have far reaching implications. 

And the second is about two women who each filed a lawsuit against pharmaceutical companies that make hormone replacement therapy (HRT) and who have both won their cases with awards of $34 million to one and $78 million to the other. Both women developed cancer after taking several HRT drugs over several years.  

Victories for we the little people…it’s all good. 

And on that note—here’s wishing you a safe and peaceful 2010.

Tags: Asbestos, Asbestos Mesothelioma, chinese drywall, Class Action, Drugs, Employment, Settlement

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