/raid1/www/Hosts/bankrupt/CAR

/raid1/www/Hosts/bankrupt/CAR_Public/091217.mbx C L A S S A C T I O N R E P O R T E R Thursday, December 17, 2009, Vol. 11, No. 249 Headlines AT&T INC: Residents Abandon Appeal of Plaintiffs' Lawyers' Fees CANADIAN SUPERIOR: Acknowledges Receipt of Securities Fraud Suit CITY OF FARGO: Plaintiffs' Lawyers Resist Disclosure of Claimants COMVERSE TECHNOLOGY: Paying $200 Mil. to Settle Backdating Affair DON'S GYM: Fitness Center Closes & Members Explore Class Action DYNAMEX INC: Hearing on Plaintiffs' Plea Set for Today FLINT, MICHIGAN: Strip Search Settlement Gets Interim Approval FORTUNET INC: Minority Shareholders Sue Company & Majority Holder GERMANY: 34,000 Plaintiffs Want Vorratsdatenspeicherung to Stop HARD ROCK: San Diego Hotel Accused of Bait-and-Switch Scheme IMAX CORP: Canadian Court Certifies Shareholder Class JAPAN: Tokyo Firebombing Victims' Class Action Suit Dismissed MAITLAND NEWCASTLE DIOCESE: Australian Settlement Talks Underway METROPCS: Class Action Challenges "Unlimited International Calls" NEUROMETRIX INC: D. Mass. Dismisses Securities Fraud Suit NEW YORK CITY: 2nd Cir. Upholds 2007 Child Services Settlement OPTION ONE: Accused of Labor Code Violations in Calif. Lawsuit SONY ELECTRONICS: VAIO GRX Notebook Settlement Hearing on Feb. 18 SPRINT NEXTEL: Accused in Calif. of Billing Hidden Surcharges WYNN RESORTS: Seeks Dismissal of D. Nev. Second-Hand Smoke Suit * NERA Releases Updated Securities Class Action Litigation Report ********* AT&T INC: Residents Abandon Appeal of Plaintiffs' Lawyers' Fees --------------------------------------------------------------- The St. Louis Post-Dispatch reports that six residents have dropped their appeal of a judge's ruling against them in a class action suit against AT&T. The $65 million suit was settled last month, and covered in the Nov. 19, 2009, edition of the Class Action Reporter. Edward Luby, a lawyer from University City who represented five residents, told the newspaper last week that he filed a dismissal with the Missouri Court of Appeals. The residents had sought to intervene in the AT&T suit so they could challenge the amount of attorneys' fees. St. Louis Circuit Judge Edward Sweeney denied their motion and was sharply critical of the residents in his lengthy order. He said their request was "replete with erroneous statements" and that they had unfairly attacked John Mulligan Jr., University City's city attorney. CANADIAN SUPERIOR: Acknowledges Receipt of Securities Fraud Suit ---------------------------------------------------------------- Canadian Superior Energy Inc. confirmed it has been notified of a class action lawsuit commenced in the United States District Court for the Southern District of New York. Sgalambo v. McKenzie, et al., Case No. 09-cv-10087 (S.D.N.Y.) (Scheindlin, J.), purports to be brought on behalf of purchasers of the common stock of Canadian Superior between January 14, 2008 and February 17, 2009. The complaint alleges that certain former executives of Canadian Superior violated the Securities Exchange Act of 1934 by failing to disclose information concerning its prospects in Trinidad and Tobago. The complaint also names a current officer of Canadian Superior as a defendant. Canadian Superior has not been named a defendant in the case as it sought protection under Canadian bankruptcy and reorganization laws and has since reorganized. Canadian Superior intends to take any necessary steps to protect its interests in this matter. The Plaintiff is represented by: Samuel Howard Rudman, Esq. COUGHLIN STOIA GELLER RUDMAN & ROBBINS, LLP 58 South Service Road, Suite 200 Melville, NY 11747 Telephone: (631) 367-7100 Last week, The Brualdi Law Firm, P.C., related that the Complaint charges that certain of Canadian Superior's former executives violated federal securities laws. On August 16, 2007, Canadian Superior and Challenger Energy announced that BG International Limited entered into a farm-in agreement and joint operating agreement with Canadian Superior to participate in the exploration drilling and development of the Intrepid Block 5(c). The Complaint alleges that defendants failed to disclose: (i) the discovered reserves for Intrepid Block 5(c) were below the economic threshold for development; (ii) that Canadian Superior had notified BG of its intention to commence a corporate sale in November 2008 to overcome the financial constraints that were preventing it from meeting its funding obligations under the Joint Operating Agreement; (iii) that Canadian Superior had violated the terms of the Joint Operating Agreement with BG, potentially endangering its interest in the Joint Venture; and (iv) Canadian Superior failed to timely pay Maersk, the drilling operator, and potentially other contractors. CITY OF FARGO: Plaintiffs' Lawyers Resist Disclosure of Claimants ----------------------------------------------------------------- The Associated Press reports that lawyers who obtained the $1.5 million settlement in Sauby v. City of Fargo, Case No. 07-cv-00010 (D. N.D.), a class action lawsuit over excessive traffic fines in the city of Fargo, say they will continue to fight a request to turn over names to child support enforcement officials. The state has said it would seek a subpoena to get the names of about 14,000 people who have filed valid claims for reimbursement, in order to find out if any of them are behind in child support payments. An attorney for the woman who filed the original lawsuit: Timothy Q. Purdon, Esq. VOGEL LAW FIRM P.O. Box 2097 200 N. 3 St., Ste. 201 Bismarck, ND 58502-2097 Telephone: 701-258-7899 says he believes the information is confidential. Mr. Purdon and other attorneys obtained a protective order to make sure the matter is heard in federal court. Child enforcement officials say the information is public and the list will only be used in trying to collect money for families. The Class Action Reporter covered the settlement on Dec. 3, 2009. COMVERSE TECHNOLOGY: Paying $200 Mil. to Settle Backdating Affair ----------------------------------------------------------------- Ron Stein and Ron Steinblatt at "Globes" report that Comverse Technology Inc. (Nasdaq:CMVT) is close to a compromise with investors concerning a class action suit over the options backdating affair. Messrs. Stein and Steinblatt understand from their sources that the company, which provides billing software and systems and multimedia communications services, is expected to pay investors between $200-250 million to settle the suit against it in the US. The belief is that former Comverse founder Kobi Alexander, who fled the US and settled in Namibia, will pay $60 million from his own pocket as part of the settlement. The company itself will pay between $140-170 million to investors in a number of payments during 2010, while Alexander himself will make an immediate payment of $50 million out of the total amount he is agreeing to pay. As part of the compromise all parties agree that Comverse will not admit any culpability over the affair. News broke of Comverse's backdating affair four years ago when it became clear that the company and its managers had caused its investors financial losses by backdating options, which resulted in substantive accounting irregularities. The likely compromise between Comverse, Alexander and the investors as part of the class action suit filed by US law firm Pomeranz on behalf of Menorah Mivtachim Holdings Ltd. (TASE: MORA) follows an agreement with the US Securities and Exchange Commission (SEC) last June by which Comverse was not required to admit or deny the SEC charges in the affair, and was also not required to pay a fine. DON'S GYM: Fitness Center Closes & Members Explore Class Action --------------------------------------------------------------- WHNT NEWS 19 in Huntsville, Ala., reports that Don's Gym and Fitness Center in South Huntsville closed it's doors leaving some without a place to work out, or the money paid for memberships. Members say Don Smith, Jr., and Don Smith, Sr., were opening the business for a few minutes to let some people pick-up their workout equipment. Things did not go as planned. "Members just wanted to get answers. Everyone showed up this morning to get answers about why they were taking some equipment out of the back," said Brent Smith. The members told WHNT NEWS 19 their main problem is not getting answers to their questions. They did mention another issue they have is with money. They are asking what's going on with their membership refunds. Some members told WHNT NEWS 19 that the gym collected membership fees just days before it closed. Several members at the gym said they have already started talking to a lawyer about a class action lawsuit. The Better Business Bureau told WHNT NEWS 19 it is aware of the situation. The bureau says Don's Gym has an "A" rating with the BBB and has never had any complaints until now. DYNAMEX INC: Hearing on Plaintiffs' Plea Set for Today ------------------------------------------------------ Superior Court of California, Los Angeles County, has a set a hearing for today, Dec. 17, 2009, to consider the request of the plaintiff for the Court to issue an Order adjudicating that there is no merit to Dynamex Inc.'s Affirmative Defense, according to the company's Dec. 10, 2009, Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarter ended Oct. 31, 2009. On April 15, 2005, a putative class action was filed against the company by a former independent contractor in the Superior Court of California, Los Angeles County, alleging that the company unlawfully misclassified its California drivers as independent contractors, rather than employees, and asserting, as a consequence, entitlement on behalf of the purported class claimants to overtime compensation and other benefits under California wage and hour laws, reimbursement of certain operating expenses, and various insurance and other benefits and the obligation of the Company to pay employer payroll taxes under federal and state law. Plaintiff.s original Motion for Class Certification was denied in December 2006. On appeal, the Appellate Court reversed the Denial of the Motion for Class Certification and remanded the matter for additional discovery and re-hearing of the Motion. Pursuant to Order of the Court, the names and contact information for members of the putative class were produced by the company in January 2009. In early February 2009, Plaintiff filed an Amended Complaint, which among other matters, added an additional named Plaintiff. Plaintiffs filed a new Motion for Class Certification in June, 2009, seeking the certification of a Class with four Subclasses, each dependent on the type of service rendered by the independent contractor and the weight of the vehicle provided by the independent contractor. On July 28, 2009, the Court granted the Motion. The four subclasses are each subject to between four and eight exclusions. Plaintiffs proposed a Notice of Pendency of Class Action to be sent to members of the Class. The Court approved the Notice over the company.s objections in early October. Also in early October, Plaintiff filed a Motion for Summary Judgment requesting the Court to issue an Order adjudicating that there is no merit to the Defendant.s Affirmative Defense that Plaintiffs. claims are barred because Plaintiffs and the putative class members are not employees, but are independent contractors. Dynamex Inc. -- http://www.dynamex.com/-- is a provider of same-day delivery and logistics services in the United States and Canada. The company operates in the same-day delivery services segment, with two primary service offerings: same-day on-demand delivery services, and same-day local and regional distribution services, including outsourcing services, such as fleet management and facilities management. FLINT, MICHIGAN: Strip Search Settlement Gets Interim Approval -------------------------------------------------------------- Paul Egan at The Detroit News reports that a federal judge today approved a $900,000 class-action settlement for more than 100 people who alleged they were illegally detained, strip searched, and in some cases had their body cavities searched during a 2005 raid on a Flint dance club. As part of the settlement, Flint police have agreed to institute new policies and training to prevent unconstitutional searches and arrests from happening again, the ACLU of Michigan, which backed the plaintiffs in the case, said in a news release. The settlement is to be paid by Flint and Genesee County. According to an order issued by U.S. District Judge Stephen J. Murphy III, $564,470 is to be divided among class members, about $282,000 will go to attorney fees, and about $53,000 to pay costs associated with the lawsuit. "I am happy that this horrible and humiliating experience is behind me," lead plaintiff Jennifer Thompson said in a prepared statement. "The entire ordeal was terrifying beyond belief." A final fairness hearing in the case is set for Feb. 16. FORTUNET INC: Minority Shareholders Sue Company & Majority Holder ----------------------------------------------------------------- Courthouse News Service reports that shareholders say Yuri Itkis is trying to buy up all the shares of Fortunet that he does not already own, for the unfair price of $1.70 apiece, in Clark County Court, Las Vegas. A copy of the Complaint in Jungreis, et al. v. Itkis, et al., Case No. A-09-605118-B (Nev. D. Ct., Clark Cty.), is available at: http://www.courthousenews.com/2009/12/10/SCAFortunet.pdf The Plaintiffs are represented by: Eduard Korsinsky, Esq. Juan E. Monteverde, Esq. LEVI & KORSINSKY, LLP 30 Broad Street, 15th Floor New York, NY 10004 Telephone: 212-363-7500 - and - Andrew P. Gordon, Esq. McDONALD CARANO WILSON LLP 2300 West Sahara Avenue, Suite 1000 Las Vegas, NV 89102 Telephone: 702-873-4100 GERMANY: 34,000 Plaintiffs Want Vorratsdatenspeicherung to Stop --------------------------------------------------------------- Agence France-Presse reports from Berlin that Germany's biggest- ever class action lawsuit began Tuesday, with over 34,000 plaintiffs seeking to overturn a law on keeping phone and Internet records which they say infringes their right to privacy. Since 2008, German telecom firms have been obliged by law to keep a record of every email sent, every phone call made - mobile or otherwise - and all Internet usage as part of measures to prevent terrorism and fight crime. They are not meant to record or listen to the phone calls or read the emails. All that is kept is who emailed or phoned whom, and which websites were visited; and to keep this log for six months for police to be able to consult. Critics say that the potential for errors and abuse is huge, that a culture of excessive 'Big Brother' surveillance is pervading other areas of life and that this and similar measures are being implemented in a ham-fisted manner. The German constitutional court, which was not expected to take a decision on Tuesday, has in two previous rulings already forced the authorities to curtail the retention of data, known as 'Vorratsdatenspeicherung.' Justice Minister Sabine Leutheusser-Schnarrenberger found herself in the unusual position of appearing both as plaintiff and defendant, AFP notes, having joined the action as a member of the opposition before becoming minister this year. HARD ROCK: San Diego Hotel Accused of Bait-and-Switch Scheme ------------------------------------------------------------ Elizabeth Banicki at Courthouse News Service reports that promoters of the Hard Rock Hotel San Diego took tens of millions of dollars through bait-and-switch contracts that led investors to believe they would be treated like "rock stars" in suites that cost as much as $2 million apiece, but let them use the rooms for only 4 weeks a year, according to a federal class action. The class claims that promoters sold investment contracts on studios and suites at Hard Rock Hotel San Diego without registering them with the SEC or qualifying them with the California Department of Corporations because they didn't want federal and state regulators reviewing the agreements. The class claims the purchase contracts gave the hotel control of the keys to the units and allowed investors to use them only 28 days a year. Whether the investors made money on the units wholly depended on the efforts of the promoters, the complaint states. The investors say the money they are receiving is only a fraction of what they need to break even. They claim to have "suffered tens of millions of dollars in damages." The class claims that when they entered the agreements, they thought had a choice about whether to use the promoters as managers - but they had no such choice. "The Hard Rock Hotel San Diego Investment Contract was an artifice of deception" used to "shift substantial risks of the [hotel] to dazzled investors," according to the complaint. The defendant promoters include the Tarsadia Hotel, 5th Rock LLC, MPK One LLC, Playground Destination Properties, and East West Bank; the individual defendants are Tusher Patel, B.U. Patel, and Gregory Casserly. The class seeks rescission and damages for misrepresentation and omissions, and securities and corporations violations. A copy of the Complaint in Salameh, et al. v. Tarsadia Hotel, et al., Case No. 09-cv-02739 (S.D. Calif.), is available at: http://www.courthousenews.com/2009/12/10/HardRockSD.pdf The Plaintiffs are represented by: Michael J. Aguirre, Esq. Christopher S. Morris, Esq. Maria C. Severson, Esq. AGUIRRE, MORRIS & SERVERSON LLP 44 West C Street, Suite 210 San Diego, CA 92101 Telephone: 619-876-5364 IMAX CORP: Canadian Court Certifies Shareholder Class ----------------------------------------------------- In a groundbreaking case, Jim Middlemiss at the Financial Post reports, an Ontario Superior Court judge has certified a class- action law suit against IMAX Corp., the Canadian entertainment technology maven that pioneered giant-screen cinema. Silver, et al. v. IMAX Corp., et al., Ct. File No. CV-06-3257-00 (Ont. Super. Ct. of J.), is notable because it is the first to test changes to the Ontario Securities Act, which created civil liability for what is called secondary market disclosure. The changes made it easier for disgruntled shareholders to sue officers and directors of a company over alleged misrepresentations or omissions in public disclosure documents; however, until now, no one knew what the threshold for bringing such a case would be. In the ruling, that will no doubt be cheered by investors, and jeered by Bay and Wall Streets, Justice Katherine van Rensburg held that the hurdle for bringing such litigation should be set low. "There is no reason to read in a 'high' or 'substantial' onus requirement for good faith in this type of proceeding," she ruled, adding that "a threshold that is too difficult to meet will eventually have little deterrent value." The judge's findings, set out in two separate decisions, one granting the plaintiffs leave to bring the case and another certifying the action as a class suit, pave way for investors Cliff Cohen and Marvin Neil Silver to sue a number of IMAX officers and directors, including CEO Richard Gelfond and chairman Bradley Wechsler over disclosures relating to the company's 2005 financial statements. Copies of the decisions are available at http://amlawdaily.typepad.com/IMAX1.pdf and http://amlawdaily.typepad.com/IMAX2.pdf One of the lawyers representing the plaintiffs: Jay Strosberg, Esq. SUTTS STROSBERG LLP 600 - 251 Goyeau Street Windsor, Ontario N9A 6V4 CANADA Telephone: 519-258-9333 told Mr. Middlemiss the judge "makes it clear that the preliminary merits test . . . is not a high threshold. This will lower the bar and make it easier for investors to have access to justice. . . ." Another plaintiff lawyer: Dimitri Lascaris, Esq. SISKINDS 680 Waterloo Street P.O. Box 2520 London, Ontario N6A 3V8 CANADA Telephone: 519-660-7844 added that the judge faced a "huge undertaking" because she was interpreting legislation in Canada that had "no parallels." He added "it's a very good day for the investing public in Canada. For a long time it's been difficult for them to advance their claims in a class action setting. Finally, there's relief on the class-action horizon." The case will go to the discovery process and is still years away from being heard by a court, Mr. Middlemiss notes. IMAX Corp. is represented by: R. Paul Steep, Esq. Dana M. Peebles, Esq. McCARTHY TETRAULT Suite 5300, TD Bank Tower Toronto Dominion Centre Toronto, Ontario M5K 1E6 CANADA Telephone: 416-362-1812 JAPAN: Tokyo Firebombing Victims' Class Action Suit Dismissed ------------------------------------------------------------- The Mainichi Daily News reports that a case filed against the Japanese government by victims of the 1945 Great Tokyo Air Raid, calling for compensation for lack of support following World War II, was dismissed on Monday. One-hundred thirty-one family of the dead and survivors of the March 10, 1945, U.S. Army Air Force firebombing of the capital -- which claimed the lives of about 100,000 -- filed suit against the government calling for an apology and a total of 1.4 billion yen in compensation for failing to provide support after the war. However, Presiding Tokyo District Court Judge Toshihiko Tsuruoka stated that "relief for victims of war is at base a political consideration and should be decided through legislation, and there is no choice but to allow legislation the greatest latitude." The plaintiffs plan to appeal. The full story is available at: http://mdn.mainichi.jp/mdnnews/news/20091215p2a00m0na015000c.html MAITLAND NEWCASTLE DIOCESE: Australian Settlement Talks Underway ---------------------------------------------------------------- Giselle Wakatama at ABC News reports that lawyers in Australia are trying to negotiate a multi-million dollar settlement with the Catholic Church for 24 victims of a paedophile Hunter Valley priest. The 24 men have joined a class action lawsuit for damages for abuse they suffered at the hands of Father John Sidney Denham. Fr. Denham is accused of molesting 40 boys, mainly at a Newcastle Catholic High School in the 1970's and 80's. He has pleaded guilty to 29 child sex offences and a further 29 will be taken into account during sentencing proceedings, starting in Sydney today. A lawyer acting for Dr. Denham's victims has told the ABC that he is hoping to avoid court and negotiate a settlement with the Maitland Newcastle Catholic Diocese. It is understood each victim could be paid hundreds of thousands of dollars. On Friday, Pope Benedict apologised again for the actions of some members of the clergy. METROPCS: Class Action Challenges "Unlimited International Calls" ----------------------------------------------------------------- Jon Hood at ConsumerAffairs.com reports that a class action lawsuit says that wireless provider MetroPCS promises "unlimited international calls" for only $5 per month, but fails to mention that calls to many countries are excluded. The suit accuses MetroPCS of using "bait and switch/deceptive trade practices," including misleading advertising, to lure customers into signing up for the plan. Friedman v. MetroPCS Communications, Inc., Case No. 09-cv-05415 (E.D.N.Y.) (Amon, J.), accuses MetroPCS of violating two New York consumer protection laws "and substantially similar statutes of different states." Specifically, the action says that MetroPCS offered unlimited international calls for a mere $5 a month, on top of the $45 flat fee attached to the company's "Ultimate Unlimited" plan, but never mentioned to consumers that the plan excludes calls to many foreign destinations. According to the suit, class members bought the service "in reliance of such advertisements." MetroPCS's appeal comes from its non-traditional, flexible plans marketed to city dwellers. The company offers "unlimited service" for a flat monthly fee, and doesn't use contracts. It primarily serves customers in larger cities, including New York, Los Angeles, San Francisco, Boston, Miami, and San Francisco. It doesn't take much effort to find ads sporting MetroPCS's trademark orange and purple logo plastered on the walls of subway trains or bus depots. Lead plaintiff Eli Friedman decided on a MetroPCS plan in November after seeing such advertisements throughout New York City. The ads suggested that international calls were practically free under the company's wireless plans. A representative ad cited in the complaint read, "Add the World. $5. Unlimited International Calling." Enticed, Mr. Friedman bought a phone, plan, and threw down the extra $5 for international calls. According to the suit, neither the ads nor the contract Friedman signed mentioned that calls to certain countries were excluded from the carrier's offer of "unlimited international calls." MetroPCS's salespeople also neglected to mention the plan's signficiant limitations. Despite MetroPCS's best efforts, it didn't take Mr. Friedman long to figure out that the plan was nothing to write home about. Shortly after signing up for his plan, he tried to place two calls to the United Kingdom and Israel -- hardly third-world nations -- and was unable to connect. He was told that placing the calls successfully would require him to buy a MetroPCS- provided calling card, defeating the purpose of buying a phone plan that includes "unlimited international calls." Friedman's plan became "of little or no value" once he learned of the number of "important locations" that were off-limits under the plan. The suit seeks an order of specific performance, asking that the court compel MetroPCS to provide the international calls that customers had to pay for out of their own pockets. In the alternative, the class seeks reimbursement for the calls they already made. The Plaintiff is represented by: Peretz Bronstein, Esq. Edward N. Gewirtz, Esq. BRONSTEIN, GEWIRTZ & GROSSMAN, LLC 60 E. 42nd Street, Suite 4600 New York, NY 10165 Telephone: 212-697-6484 NEUROMETRIX INC: D. Mass. Dismisses Securities Fraud Suit --------------------------------------------------------- NeuroMetrix, Inc. (Nasdaq: NURO), a health care company transforming patient care through neurotechnology, today announced that United States District Court for the District of Massachusetts dismissed the consolidated federal securities class action lawsuit that had been pending against the company. The lawsuit, filed against the company and certain officers on behalf of a purported class of investors who purchased NeuroMetrix common stock between October 27, 2005, and February 12, 2008, had alleged, among other things, that the defendants made false and misleading statements and failed to disclose material information in various Securities and Exchange Commission filings, press releases and other public statements in violation of the federal securities laws. The Court entered a judgment dismissing the complaint on December 8, 2009, rejecting the plaintiffs' allegations in their entirety. The plaintiffs have the ability to appeal the Court's decision. NeuroMetrix -- http://www.neurometrix.com/-- is a science-based health care company transforming patient care through neurotechnology. NEW YORK CITY: 2nd Cir. Upholds 2007 Child Services Settlement -------------------------------------------------------------- Courthouse News Service reports that the United States Court of Appeals for the Second Circuit dismissed a challenge to a class- action settlement over New York's alleged practice of removing children from the homes of black and Latino parents or guardians without properly investigating allegations of abuse and neglect. Nearly 11 years ago, People United for Children filed a class action against New York City, the city's Administration for Child Services, its commissioner and then-Mayor Rudolph Giuliani, claiming the city's child-removal policies discriminated against minorities and violated their constitutional, parental, privacy, cultural and religious rights. In February 2007, U.S. District Judge Kevin Duffy approved the parties' settlement, which took steps to keep parents better informed and to eliminate potential bias. The city also agreed to pay nearly $100,000 in "incentive awards" to all but one named plaintiff. The Manhattan-based federal appeals court upheld the settlement as "fair, adequate, and reasonable," despite the objections of two class members. A copy of the slip opinion in People United For Children, Inc. v. The City of New York, Nos. 07-2042-cv(L), 07-2084-cv(CON), and 07-2636-cv(CON) (2d Cir.), is available at http://is.gd/5oqXf OPTION ONE: Accused of Labor Code Violations in Calif. Lawsuit -------------------------------------------------------------- Courthouse News Service reports that Option One Mortgage, Sand Canyon Corp., and H&R Block are accused of Labor Code violations, in a single class action in Santa Ana, Calif. SONY ELECTRONICS: VAIO GRX Notebook Settlement Hearing on Feb. 18 ----------------------------------------------------------------- A final hearing to approve a settlement in Hapner v. Sony Electronics Inc., Case No. 839244 (Calif. Super. Ct., San Diego Cty.), is scheduled for Feb. 18, 2010. The lawsuit claims that Sony VAIO(R) GRX Notebook computers in the 500 and 600 series were defectively designed and that the solder joints holding the memory sockets onto the motherboards of the computers would fail prematurely. The Plaintiff claims this resulted in failure to boot, inability to access installed memory, freezing and other related symptoms. Sony Electronics Inc., the Defendant in the case, says it did not do anything wrong and that there is nothing wrong with the computers. To settle the litigation, Sony has agreed to reimburse certain repair costs and not object to a request by plaintiffs' counsel for up to $625,000 in legal fees. Additional information about the settlement and the claims process is available at http://esupport.sony.com/vaiogrxsettlement The Plaintiff class is represented by: James C. Shah, Esq. Scott R. Shepherd, Esq. Gary Kostow, Esq. SHEPHERD, FINKELMAN, MILLER & SHAH, LLC 35 East State Street Media, PA 19063 Telephone: 610-891-9880 - and - James Miller, Esq. SHEPHERD, FINKELMAN, MILLER & SHAH, LLC 65 Main Street Chester, CT 06412 Telephone: 860-526-1100 - and - Karen M. Leser-Grenon, Esq. SHEPHERD, FINKELMAN, MILLER & SHAH, LLC 401 West A Street, Suite 2350 San Diego, CA 92101 Telephone: 619-235-2416 - and - Lawrence E. Feldman, Esq. FELDMAN & ASSOCIATES 432 Tulpehocken Ave. Elkins Park, PA 19027 Telephone: 215-885-3302 - and - Thomas D. Mauriello, Esq. LAW OFFICES OF THOMAS D. MAURIELLO 209 Avenida Fabricante, Suite 125 San Clemente, CA 92672 Telephone: 949-542-3555 - and - John Malesovas, Esq. MALESOVAS & MARTIN, LLP 425 Austin Ave., 10th Floor P.O. Box 1709 Waco, TX 76703-1709 Telephone: 254-753-1777 - and - Jonathan Shub, Esq. SEEGER WEISS LLP 1515 Market Street, Suite 1380 Philadelphia, PA 19102 Telephone: 215-564-2300 - and - Jonathan D. Selbin, Esq. LIEFF CABRASER HEIMANN & BERNSTEIN, LLP 780 Third Ave., 48th Floor New York, NY 10017 Telephone: 212-355-9500 - and - Anthony L. Vitullo, Esq. FEE, SMITH, SHARP & VITULLO, LLP Three Galleria Tour 13155 Noel Road, Suite 1000 Dallas, TX 75240 Telephone: 972-934-9100 - and - Paul R. Kiesel, Esq. KIESEL, BOUCHER & LARSON, LLP 8648 Wilshire Blvd. Beverly Hills, CA 90211-2910 Telephone: 310-854-4444 Sony is represented by: Luanne Sacks, Esq. John R. Hurey, Esq. DLA PIPER LLP 555 Mission Street, Suite 2400 San Francisco, CA 94105-2933 Telephone: 415-836-2500 - and - Brian A. Foster, Esq. Nikki Wyll, Esq. DLA PIPER LLP 401 B Street, Suite 1700 San Diego, CA 92101-4297 Telephone: 619-699-2632 SPRINT NEXTEL: Accused in Calif. of Billing Hidden Surcharges ------------------------------------------------------------- Courthouse News Service reports that Sprint Nextel adds hidden surcharges of as much as 10 to 20 percent to its phone bills, a class action claims in Los Angeles Superior Court. WYNN RESORTS: Seeks Dismissal of D. Nev. Second-Hand Smoke Suit --------------------------------------------------------------- Steve Green at the Las Vegas Sun reports that attorneys for Wynn Las Vegas are seeking dismissal of a lawsuit claiming its casino workers are exposed to dangerous second-hand tobacco smoke. In court papers filed Friday, Wynn's attorneys argued that (A) the suit appears to be part of a union campaign involving Wynn casino dealers and (B) Wynn is in compliance with the Nevada Clean Indoor Air Act, which specifically allows smoking in casinos. Kastroll v. Wynn Resorts, Ltd., Case No. 09-cv-02034 (D. Nev.), was filed Oct. 20, 2009, in federal court in Las Vegas by dealer and Transport Workers Union officer Kanie Kastroll, as reported in the Oct. 23, 2009, edition of the Class Action Reporter. The suit, filed by Chicago class-action lawsuit firm KamberEdelson LLC, seeks an order requiring Wynn "to take reasonable measures to protect its employees from second-hand smoke" and unspecified costs and attorney's fees. Attorneys for the Las Vegas Strip resort: James J. Pisanelli, Esq. Debra Spinelli, Esq. BROWNSTEIN HYATT FARBER SCHRECK 100 City Parkway, Suite 1600 Las Vegas, NV 89106 Telephone: 702-382-2101 argued Friday: "The real basis for this action appears by all measures to be the pursuit of a political agenda." "Although not specifically disclosed in her pleading, plaintiff is the president of a local union who has fought for years to unionize a certain group of Wynn's casino workers. In what appears to be either a retaliatory lashing out at the Wynn or an otherwise shameless grab for publicity, plaintiff has filed this action with no real causes of action under Nevada law, and no jurisdiction whatsoever for this court," Wynn said in its filing. "Plaintiff's complaint reads more like a union rally speech than a legal pleading. Whether her baseless and inflammatory allegations are really designed to simply garner support and appreciation from the people plaintiff hopes to represent in her union is an obvious and fair question," Wynn's filing said. The Wynn attorneys also asserted that with "the Nevada Legislature's specific endorsement of Wynn's conduct, Wynn has no duty to shield its employees from second-hand smoke and plaintiff's claims must therefore fail." Wynn's filing noted that the 2006 ballot measure creating the Nevada Clean Indoor Act, as codified by the Legislature, specifically exempts from regulation areas within casinos where loitering by minors is already prohibited. "In essence, plaintiff asks this court to override the Nevada Legislature's judgment on these very issues and judicially legislate how the gaming industry conducts its business," Wynn's response said. Wynn's attorneys also noted there's debate in the scientific community about at what level second-hand smoke becomes dangerous and that it would be impossible to determine whether injuries associated with such smoke were sustained in a casino -- or elsewhere. "Due its ubiquitous nature, the court can never be certain about the source of any individual claimant's exposure to second-hand smoke. Indeed, Wynn cannot control its employees' exposure to tobacco smoke outside of the workplace. It may be true that many of its employees are exposed to second-hand smoke on a regular basis while at home or other places they frequent," Wynn's filing said. * NERA Releases Updated Securities Class Action Litigation Report ---------------------------------------------------------------- The credit crisis, now in its third year, and related financial sector turmoil continued to fuel new federal securities class action filings in 2009, according to NERA Economic Consulting's bi-annual report, Recent Trends in Securities Class Action Litigation: 2009 Year-End Update, released earlier this week. According to NERA's report, securities class action filings are expected to reach 235 cases in 2009, down from 253 filings in 2008. While filings may have declined year-over-year in 2009, they still greatly exceed the 130 filings in 2006, before the start of the credit crisis. Credit Crisis Filings Waning While the credit crisis continued to drive filings activity in 2009, with over 60 credit crisis cases filed through 30 November, the pace of these cases has gradually declined throughout the year. Credit crisis-related filings in the first half of 2009 outnumbered second-half filings by approximately two to one. In 2008, over 40% of cases filed were credit crisis cases. To date in 2009, however, this proportion has decreased to around 30%. Exchange-Traded Fund Litigation -- A New Phenomenon? According to the Recent Trends in Securities Class Action Litigation authors, one source of the increase in securities class action filings in 2009 is the wave of filings on behalf of investors in various exchange-traded funds (ETFs), a new litigation phenomenon. In these cases, investors typically allege that the defendants failed to disclose risks and the probability of potential losses associated with the investments. Thirteen ETF-related securities class action cases were filed between August and November 2009. Trends in Settlement Values The average securities class action settlement in 2009 is $12 million, the lowest settlement value in this decade. This low average, however, is driven by an "outlier" settlement-the 309 IPO laddering cases which were settled for an aggregate $568 million, but an average of less than $2 million per case. Removing this outlier, the average settlement value in 2009 is $42 million. The median settlement value excluding IPO laddering settlements, a much better indicator of actual trends, is $9 million for 2009- similar to the 2007 and 2008 medians. Future Shareholder Monetary Settlements to Rise? "We find that investor losses, which can be calculated using publicly available data, historically have been the single most powerful determinant of settlements," said Dr. Stephanie Plancich, NERA Senior Consultant and report co-author. "In recent years, median investor losses for settled cases have been well over $300 million. For cases filed in 2008 and 2009, though, median investor losses have been almost 40% higher, over $500 million. This may be an indication that although there has not been an upward trend in recent settlements, future settlements may be larger once these recently filed cases begin to settle in more substantial numbers." Securities Class Action Trends Report Series NERA has been analyzing trends in securities class actions for more than 15 years. Two reports are published a year: one at mid- year and an annual review published at year's end. This year-end report was authored by NERA Senior Consultant Dr. Stephanie Plancich and Consultant Svetlana Starykh, and includes data on filings and dismissals through 30 November 2009, and settlements through 31 December 2009. For more details, and to read the full report, visit: http://www.nera.com/recenttrends About NERA NERA Economic Consulting -- http://www.nera.com/-- is a global firm of experts dedicated to applying economic, finance, and quantitative principles to complex business and legal challenges. For nearly half a century, NERA's economists have been creating strategies, studies, reports, expert testimony, and policy recommendations for government authorities and the world's leading law firms and corporations. We bring academic rigor, objectivity, and real world industry experience to bear on issues arising from competition, regulation, public policy, strategy, finance, and litigation. NERA's clients value our ability to apply and communicate state- of-the-art approaches clearly and convincingly, our commitment to deliver unbiased findings, and our reputation for quality and independence. Our clients rely on the integrity and skills of our unparalleled team of economists and other experts backed by the resources and reliability of one of the world's largest economic consultancies. With its main office in New York City, NERA serves clients from over 20 offices across North America, Europe, and Asia Pacific. ********* S U B S C R I P T I O N I N F O R M A T I O N Class Action Reporter is a daily newsletter, co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. Gracele D. Canilao, Leah Felisilda and Peter A. Chapman, Editors. Copyright 2009. All rights reserved. ISSN 1525-2272. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The CAR subscription rate is $575 for six months delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *