Settlement proposed in Sony BMG case
December 29, 2005
Here’s info on the proposed settlement in this Sony BMG case:
The attorneys in a New York class action lawsuit filed against Sony BMG and its two copy-protection software providers, SunnComm and First 4 Internet, proposed a settlement on Wednesday requiring–among other stipulations–cash payments to plaintiffs and consumer-friendly changes to copyright holders’ anti-piracy initiatives.
The settlement, if accepted by the court, would resolve six cases filed against Sony BMG and the copy-protection software providers in the Southern District Court of New York. Fifteen other lawsuits have been filed with substantially similar claims outside of that particular district court, according to the filing. The Attorney General for the State of Texas has also filed an action against Sony BMG, while the Attorneys General of both New York and Illinois are investigating the issues.
Under the settlement, people who have bought music titles distributed by Sony BMG that include the copy protection software created by First 4 Internet or SunnComm would be entitled to compensation, easily accessible software utilities to uninstall and update the copy-protection software, and protection from any collection of their personal information by the companies. Sony BMG would also agree to not enforce certain measures in the end-user license agreements, recall CDs with First 4 Internet’s XCP copy protection and not manufacturer MediaMax CDs for two years.
The agreement could spell the beginning of the end of a public outcry aimed at Sony BMG for its controversial copy protection measures. After the software was first analyzed by two groups of security researchers in October, a backlash against Sony BMG left the company scrambling to contain damage to it public image. The debate also renewed scrutiny of the measures that copyright holders had started pursuing to protect their content.
Here’s some background.
Jury Awards $172M to CA Wal-Mart Employees
December 22, 2005
Breaking news from the Associated Press:
OAKLAND, Calif. - A California jury on Thursday awarded $172 million to thousands of employees at Wal-Mart Stores Inc. who claimed they were illegally denied lunch breaks.
The world’s largest retailer was ordered to pay $57 million in general damages and $115 million in punitive damages to about 116,000 current and former California employees for violating a 2001 state law that requires employers to give 30-minute, unpaid lunch breaks to employees who work at least six hours.
The damages were originally tallied as $207 million after a court clerk misread the punitive damages as $150 million. The amount of punitive damages was later clarified.
The class-action lawsuit in Alameda County Superior Court is one of about 40 nationwide alleging workplace violations by Wal-Mart, and the first to go to trial. The Bentonville, Ark.-based retailer, which earned $10 billion last year, settled a similar lawsuit in Colorado for $50 million.
In the California lunch-break suit, Wal-Mart claimed that workers did not demand penalty wages on a timely basis. Under the law, the company must pay workers a full hour’s wages for every missed lunch.
The company also said it paid some employees their penalty pay and, in 2003, most workers agreed to waive their meal periods as the law allows.
The lawsuit covers former and current employees in California from 2001 to 2005. The workers claimed they were owed more than $66 million plus interest, and sought damages to punish the company for alleged wrongdoing.
[…]
The lawsuit was filed by several former Wal-Mart employees in the San Francisco Bay area in 2001, but it took four years of legal wrangling to get to trial.
Class Action Over Pfizer’s Depo-Provera
December 22, 2005
Another headache for Pfizer:
Canadian women looking for a trouble-free way to prevent pregnancy may be making themselves susceptible to osteoporosis, a condition that causes bones to become fragile and more likely to fracture.
A $700-million class action lawsuit has been filed against the makers of Depo-Provera, a birth control injection prescribed to more than 600,000 Canadians last year. The lawsuit alleges that women who have taken the contraceptive have developed osteoporosis.
Depo-Provera is made by international drug conglomerate Pfizer, also responsible for popular prescription drugs Viagra, Zoloft and Celebrex. Users are given an injection every three months and have a less than one per cent chance of getting pregnant while on the medication, according to the drug maker’s website.
Tracey Bourque, 33, recently found out she has the bone density of a 55-year-old woman. Bourque and her doctor wonder if it is linked to her use of Depo-Provera.
Depo-Provera was tested in the 1980s and approved in Canada in 1997. Two million prescriptions for the drug have been written in Canada in the past four years.
One year ago, Pfizer warned Canadian and American officials the drug could lead to bone density loss. The United States issues a warning shortly afterwards saying the drug should not be used as a long-term contraceptive. Health Canada issued similar statements in November, 2004, and June and July this year.
“The data indicate that women who use Depo-Provera may lose significant (bone mineral density),” states the July Health Canada warning. “The data also indicate that bone loss is greater with increasing duration of use and may not be completely reversible.”
[…]
According to lawyer Glyn Hotz, Bourque isn’t the only concerned person. He told CTV that he has filed a class action lawsuit on behalf of a group of woman who also worry about a link between Depo-Provera and bone deterioration.
“We’ve seen people who have had multiple fractures, required knee replacements,” he said Monday. “We’ve got somebody who is in her twenties who is on the borderline for having a hip replacement.”
For the rest, click here.
Canadian class action over Bayer’s Baycol
December 21, 2005
Two Manitoba women have filed a class action against Bayer, maker of the cholesterol-reducing drug Baycol:
The German-based company voluntarily removed the drug from the market in August 2001 after 31 deaths were attributed to its use.
Five months later, Bayer confirmed that almost 100 deaths were linked to Baycol. It’s believed the drug has caused debilitating muscle and kidney ailments in thousands of people.
The women’s claim was approved as a class action suit by a Manitoba judge after a certification hearing last year.
[…]
The class action suit is the first to be filed in Manitoba under a new law which sets out the procedures and rules for class action suits.
Previously, class actions were permitted in Manitoba but were difficult to pursue because there were no rules and they seldom went to trial.
The class action suit says the two women continued to experience muscle pain and loss even after they stopped taking the drug. Bayer is facing a number of class action suits as a result of the drug.
Judge consolidates class-action suits against pasta maker
December 20, 2005
From the Kansas City Star:
A federal judge has consolidated numerous class-action lawsuits against American Italian Pasta Co. and appointed three locals of the Iron Workers union as lead plaintiff in the case.
U.S. District Judge Ortrie Smith today ruled that the cases shared factual and legal issues, “and consolidation will streamline matters and prevent needless confusion, expense and delay.”
The cases were filed after the Kansas City-based company on Aug. 9 announced a $60.7 million charge and disclosed that it would delay filing its quarterly financial report and that the Securities and Exchange Commission had launched an investigation..
The next day American Italian’s stock price closed $7.15 lower, a 33.5 percent drop. In midday trading on the New York Stock Exchange, American Italian shares were up 46 cents, or 6.05 percent, at $9.06.
At least half a dozen securities and derivative actions — lawsuits brought by shareholders on behalf of the corporation over allegedly improper management — have been filed against American Italian since then. Plaintiffs include several firefighter and police pension funds, including the Firefighters’ Pension System of the City of Kansas City, the union security funds of Iron Workers Local No. 40, 361 and 417 and the Teachers’ Retirement System of Louisiana.
After finding that that the Iron Workers unions had the biggest financial stake in the litigation, Smith selected them as lead plaintiff.and their attorneys in the case, New York-based Pomerantz Haudek Block Grossman & Gross, as lead counsel.
College fees in California challenged
December 20, 2005
“A group of out-of-state college students filed a class-action lawsuit Wednesday challenging a law that lets some illegal immigrants who graduate from California high schools pay lower in-state fees at the state’s public colleges and universities.”
The 2002 law allows students who attend at least three years of high school in California to qualify for the same in-state fee break given California citizens, regardless of their immigration status.
The lower fee levels can save students thousands of dollars a year. For example, out-of-state students pay nearly $24,000 a year to attend the University of California, about $17,000 more than California residents.
The lawsuit was filed in Yolo County on behalf of 42 plaintiffs, including two children of a former San Diego congressman. Nine UC Davis students make up the largest plaintiff group from one campus.
Attorneys for the plaintiffs said the discriminatory policy affects 60,000 out-of-state students who pay higher fees than in-state illegal immigrants. The plaintiffs are seeking damages.
“The class becomes bigger each year because each year thousands of law-abiding freshmen enter our system,” said Redwood City attorney Michael Brady.
At issue is a federal law the plaintiffs claim specifically bars states from offering benefits to illegal immigrants without also making them available to U.S. citizens.
California is one of nine states with laws allowing undocumented students to qualify for lower in-state tuition rates. A lawsuit filed in federal court in Kansas challenging that state’s law was dismissed, but is being appealed.
[…]
To qualify for the in-state rate, students must have attended a California high school for at least three years, must graduate from a California high school and must sign an affidavit declaring they will seek to become legal residents as soon as it is feasible.
Suzanne Kattija-Ari, 23, a UC Davis veterinary student from Hawaii whose father immigrated from Thailand in the 1970s, said the fee break is unfair to those who follow the law but end up paying more than their illegal counterparts.
She said she has had to work several part-time jobs and take out student loans to pay her high out-of-state fees.
“It’s not so much that they got this benefit and we didn’t; it’s just the unfairness of it,” she said. “They’re 18 now. They should do the right thing, apply for citizenship.”
Settlement in GE refrigerator class action suit
December 17, 2005
Own a GE fridge? Read on:
FORT MYERS - An NBC2 investigation has prompted appliance giant General Electric to replace defective refrigerators, not only in Florida, but across the country. The company has reached a settlement deal with plaintiffs in a class action lawsuit filed after our story. The 28 page settlement is big news for consumers because GE put in writing a promise to replace, reimburse and add extra protection for those who have defective refrigerators.
GE had already replaced thousands of defective refrigerators in the Southwest Florida area, but now the company will do the same thing nationwide.
NBC2’s investigation found rust dripping from the refrigerator’s insides, an ugly black substance embedded in ice cubes and sharp plastic pieces broken away from ice makers.
Our investigation caught the eye of Bill Turner of Naples, who filed a federal class action complaint. Now his class action suit will go nationwide.
“To have a settlement today, brings a lot of appreciation the system works,” said Turner.
The settlement includes GE refrigerators and “Hotpoint” brands. The units were made in 2001 and 2002 in Bloomington, Indiana, including the 20, 22 and 25 cubic foot side by side models.
The settlement includes close to 300 model numbers.
GE will replace units that have needed more than three repairs to fix moisture related problems.
For those consumers that qualify, they will not only receive replacement refrigerators, but a one year additional warranty and reimbursements for repairs.
“I think that’s the biggest part of the case because many have spent money out of pocket to fix their refrigerator and they are getting all this back from GE,” said Scott Weinstein, Turner’s attorney.
A judge still has to sign off on the settlement. At that point, the claim forms will be available. A final hearing is not expected until spring of 2006.
GE will send direct notices by mail to all owners of these units that are in their database. They will also put out advertisements nationwide.
Philip Morris *wins* a case
December 16, 2005
AP is reporting that “the Illinois Supreme Court handed the tobacco industry a huge victory Thursday by tossing out a $10.1 billion fraud judgment against Philip Morris USA over the marketing of its “light” cigarettes.”
The Illinois case came to the state’s high court from Madison County Judge Nicholas Byron, who in March 2003 ordered the company to pay $10.1 billion — $5 billion in compensatory damages, $3 billion in punitive damages and $2.1 billion in interest.
The cigarette maker argued the case should never have been declared a class-action on behalf of some 1.1 million light cigarette smokers who bought light cigarettes in Illinois.
“Industry critics warned that the Illinois decision does not insulate U.S. cigarette companies from future lawsuits. There are at least 40 similar suits pending against companies like Philip Morris and Reynolds American, any of which could result in awards into the billions of dollars, tobacco opponents said.”
Here are some of those pending suits:
— In Oregon, an appeals court is considering a $100 million punitive damage award to the estate of a 53-year-old lung cancer victim;
— In Florida, the state Supreme Court is reviewing a $145 billion punitive damage award in the Engle class action case that was overturned on appeal;
— In New York, lawsuits charge major tobacco companies marketed light cigarettes as being less harmful than regular cigarettes despite knowing they deliver comparable amounts of tar and nicotine.
Vioxx class action in Australia
December 16, 2005
Australians are launching a class action against Merck over Vioxx:
More than 400 Australians have launched a class action for personal damages from the manufacturers of the anti-arthritis drug, Vioxx.
The drug has been found to increase the risk of stroke and heart attacks, and was globally recalled in September last year.
Law firm Slater and Gordon is bringing the class action against Merck and Co, the American manufacturer of Vioxx and its Australian subsidiary.
Special counsel Richard Meeran says clients have a compelling case for compensation.
“This drug is a defective drug - it increases the risk of heart attack and stroke by a very significant amount,” he said.
“It had been marketed and promoted by the company as being safer than the the alternative drug, when in fact the opposite seems to have been the case.”
Mr Meeran says there is evidence the drug’s manufacturers knew Vioxx posed a risk.
“Vioxx was recalled last year at the end of September by the company because the company’s own study has shown that users of Vioxx has a significantly increased rate of cardiovascular problems,” he said.
“We’re not seeking specific amounts for any body - as I said the amounts will vary and I wouldn’t want to put figures on the amounts of damages for that reason because they’ll be so variable,” he said.
Source: ABC News Online
Pfizer starting huge Celebrex study
December 14, 2005
BusinessWeek Online is reporting that Pfizer is searching for a definitive answer on celebrex by funding a “multiyear, $100 million study to finally find out if the painkiller is safe.”
“The study, being run independently by the clinic, will compare three drugs: Celebrex (the Cox-2 drug from Pfizer), ibuprofen (sold under the brand name Motrin), and naproxen, sold under brand names such as Alleve.”
The study should answer a big question: Were the cardiovascular problems seen with the withdrawn painkiller Vioxx unique to that drug or a common problem for all so-called Cox-2 inhibitors? Merck pulled Vioxx from the market in the fall of 2004 after a study confirmed it was linked to a higher risk of cardiovascular problems, including heart attacks.
Celebrex fell under similar suspicion in December, 2004, when one Pfizer’s studies showed a possible link to increased cardiovascular risk at higher doses. Those fears have hammered the drug’s sales. This year Celebrex is expected to bring in just $1.7 billion in revenue, according to SG Cowen analyst Stephen M. Scala, vs. $3.3 billion in 2004.
The study should provide a wealth of information to individuals wrestling with how to treat their arthritis. The trial will focus on people with heart disease or at high risk for it. All patients will be given low-dose aspirin, which is a typical treatment for people with heart problems, as well as the drug Prilosec, to reduce stomach acid.
It’s “a risky study for Pfizer. It could find that Celebrex does pose a cardiovascular risk, and that would doom the product.”



