Personal Injury News: Pick Of Last Month: August-2024
Care.com Agrees to $8.5 Million Settlement With FTC
Care.com, a platform offering in-home care services for children, older adults, and pets, has agreed to pay $8.5 million to settle charges from the U.S. Federal Trade Commission (FTC).
The FTC accused Care.com of significantly inflating the number of available jobs on its platform and making it difficult for customers to cancel their memberships. The settlement, which requires court approval, was filed in federal court in Austin, Texas.
The FTC's investigation was prompted by tens of thousands of complaints from Care.com customers, many of whom reported being billed even after they believed they had canceled their memberships. According to the FTC, Care.com misled customers into purchasing auto-renewing memberships by overstating the number of job opportunities and potential earnings on its platform, despite knowing that many of these jobs were unlikely to result in employment.
Additionally, the FTC accused Care.com of using deceptive website designs that complicated the cancellation process. For example, a "Submit" button misled users into thinking they had successfully canceled their memberships, while a "Cancel" button actually halted the cancellation process.
Approximately 2.9 million U.S. consumers purchased Care.com's auto-renewing memberships between January 2019 and March 2022. As part of the settlement, Care.com is required to implement a "simple mechanism" for avoiding unwanted renewals and to substantiate any employment claims made on its website.
In response to the settlement, Care.com stated that it settled the case to focus on helping families and caregivers. The company also expressed disappointment that the FTC chose to target businesses like theirs, especially as the costs of childcare and healthcare continue to rise. The $8.5 million will be used to provide refunds to affected customers.
Judge Denies Extension for East Palestine Train Settlement
A federal court in Ohio has denied a request to extend the deadline for residents to decide whether to accept their share of a $600 million class action settlement related to the February 2023 train derailment in East Palestine.
The judge ruled that the settlement was widely publicized, and residents had ample time to review it. This included a direct notice program and a claims office in East Palestine, which opened in June 2024 to offer in-person assistance.
The judge emphasized that delaying the opt-out deadline would postpone payments to other residents into 2025. The motion to extend the deadline was filed by an attorney who argued that the residents' legal representatives had not disclosed the results of environmental testing conducted by their expert. The attorney accused the class attorneys of prioritizing their $180 million fee over residents' concerns. Accepting the class action payment would prevent future lawsuits against Norfolk Southern Railroad.
The settlement amounts vary based on proximity to the derailment site. Residents within two miles could receive $70,000 for property damage, those within 10 miles could get $25,000, and people living on the outer edge of the affected area might receive only a few hundred dollars.
Sephora Shoppers Can Claim Part of $9.2M Skincare Settlement
Shoppers who purchased certain skincare products from Dr. Dennis Gross Skincare may be eligible for compensation through a settlement involving the company.
Plaintiffs alleged that the brand misled consumers by falsely advertising that its C+Collagen products contained collagen, a protein commonly used in skincare for its moisturizing and skin-rejuvenating properties. According to the lawsuit, consumers might not have bought the products or paid as much for them if they had known that there was no collagen in the formulations.
Although Dr. Dennis Gross Skincare has not admitted any wrongdoing, the company has agreed to a $9.2 million settlement to resolve the claims. To qualify for compensation, consumers must meet two criteria: They must have purchased qualifying C+Collagen products from the Dr. Dennis Gross Skincare line between March 10, 2016, and June 28, 2024.
As part of the settlement, class members can receive $50 for each C+Collagen product purchased. No proof of purchase is required to claim up to two products, with a maximum payout of $100. Those who can provide proof of purchase, such as receipts or order confirmations, can claim up to ten products, with a maximum compensation of $500. The exact payout amounts may vary depending on the number of claims submitted, with potential increases capped at $100 per product.
To receive payment, class members must submit a valid claim form by September 27, 2024. Those who wish to exclude themselves from or object to the settlement also have until this date to take action. A final approval hearing for the settlement is scheduled for October 31, 2024.
Company to Pay $1M for AI Calls Mimicking Biden
A telecommunications company that facilitated deceptive robocalls to New Hampshire voters using artificial intelligence to mimic President Joe Biden's voice has agreed to pay a $1 million fine, according to federal regulators.
Lingo Telecom, the voice service provider responsible for transmitting the calls, settled with the Federal Communications Commission (FCC) to resolve the enforcement action against it. The FCC initially sought a $2 million fine but agreed to the lower amount in the settlement.
This case has raised concerns about the use of AI in political campaigns and its potential impact on democracy. The robocalls, sent to thousands of New Hampshire voters on January 21, featured a voice that closely resembled President Biden's.
The message falsely claimed that participating in the state's presidential primary would prevent voters from casting ballots in the November general election. The misleading calls were orchestrated by a political consultant who now faces a proposed $6 million fine from the FCC, as well as state criminal charges.
The consultant, who hired a magician and self-described "digital nomad" to create the AI-generated recording, has previously stated that he was not attempting to influence the primary's outcome. Instead, he claimed his goal was to demonstrate the potential dangers of AI and prompt lawmakers to take action. If convicted, the consultant could face up to seven years in prison for voter suppression and an additional year for impersonating a candidate.
As part of the settlement, Lingo Telecom has agreed to implement stricter caller ID authentication rules and requirements. The company is also required to more thoroughly verify the accuracy of the information provided by its customers and upstream providers. The FCC emphasized the importance of ensuring that the voice on the line is genuinely who it claims to be, especially in the context of AI usage.
FCC Chairperson stated that transparency is crucial, and the FCC will take action whenever trust in communications networks is compromised.
Lingo Telecom has not responded to requests for comment. Previously, the company expressed strong disagreement with the FCC's actions, arguing that the commission was attempting to impose new rules retroactively.
The case has drawn praise from consumer advocacy groups. Public Citizen, a nonprofit organization, commended the FCC for its response. The group's co-president, echoed the chairperson's stance, stressing that consumers have the right to know when they are receiving authentic content versus AI-generated deepfakes. He also warned that such deepfakes pose a significant threat to democracy.
The FCC's Enforcement Bureau Chief highlighted the dangers of combining caller ID spoofing with generative AI voice-cloning technology. He noted that this combination could be exploited by both domestic operatives seeking political advantage and foreign adversaries aiming to interfere in elections or conduct malign influence activities.
Pilgrim’s Pride Agrees to $100M Settlement Over Farmers’ Pay
Pilgrim’s Pride, a major U.S. poultry processor, has agreed to a $100 million settlement to resolve allegations of conspiring with other poultry companies to underpay chicken farmers.
This settlement is the final and largest in a seven-year antitrust case, which still requires approval from U.S. District Judge in Utah. Pilgrim’s Pride, based in Greeley, Colorado, denies any wrongdoing.
The case accused major poultry producers of colluding to keep farmers' pay low by sharing confidential compensation data and agreeing not to poach each other’s farmers. With this settlement, the total recovery for the case will reach $169 million, minus legal fees and other expenses.
Previously, Tyson Foods, Sanderson Farms, Koch Foods, and Perdue Foods settled for $21 million, $17.75 million, $15.5 million, and $14.75 million, respectively. The settlement covers a class of 24,354 growers from January 27, 2013, to December 31, 2019.
A lawyer representing the farmers hailed the settlement as a significant antitrust resolution, likely the largest ever for a meatpacker or poultry processor. Growers, who provide the land, labor, and equipment to raise chickens, then return the birds to the processors for slaughter.
$30M for SC Teacher Killed by Falling Utility Pole
The family of a South Carolina woman who was fatally struck by a falling utility pole has reached a $30 million wrongful death settlement with Dominion Energy and Comporium, the companies involved.
The incident occurred last August when a truck legally passing through downtown Wagener snagged an unused communication line, causing the tension to break two utility poles. One of the poles was launched into the air, striking the 31-year-old victim as she was taking a lunch break from her job as a social studies teacher at Wagener-Salley High School. Despite efforts to save her, she died shortly after being transported to the hospital.
The settlement, filed in Aiken County, does not disclose how the $30 million will be divided between Dominion Energy, which installed a light on the decaying pole, and Comporium, which owned the unused line. Surveillance footage from a nearby store showed the victim attempting to avoid the falling pole before being struck. The pole's exact age is unknown, but it is believed to be over 70 years old, with no maintenance records available. The town’s mayor, aged 69, recalled a bottlecap he had nailed to one of the poles as a child, illustrating its age.
A month before the tragic event, Dominion Energy had announced a plan to begin replacing outdated infrastructure in the small town of Wagener, home to about 600 residents. Following the settlement, the family’s attorney expressed hope that Dominion and Comporium would prioritize inspections and replacement of aging utility poles, particularly in smaller towns where such infrastructure can be neglected.
Dominion Energy expressed satisfaction with the settlement and extended its deepest condolences to the victim’s family. The family plans to use part of the settlement to establish the Teacher’s Hope Fund, which will support teachers nationwide by providing school supplies and other resources. The victim’s father remembered his daughter as a dedicated educator who worked her way up from a substitute teacher and often spent her own money to provide for her students. He described her as “a light taken too soon” and someone who brought joy to others.
Humana Settles Medicare Fraud Case for $90 Million
Louisville-based Humana has agreed to pay $90 million to settle a whistleblower lawsuit alleging Medicare drug fraud under the False Claims Act.
The lawsuit, filed in California, accused the healthcare company of submitting fraudulent bids to the Centers for Medicare & Medicaid Services (CMS) for Medicare Part D prescription drug contracts between 2011 and 2017.
According to the lawsuit, Humana significantly overcharged the federal government by using two sets of financial records—one for its bids to CMS and another for internal purposes, which accurately reflected the company’s actual anticipated costs. The whistleblower, a former Humana actuary, claimed the company knowingly based its bids on inflated numbers that consistently favored Humana by hundreds of millions of dollars. This scheme allegedly affected the company’s Part D "Walmart Plan."
The whistleblower lawsuit, filed in 2016, also claimed Humana adjusted its practices after the government launched an investigation in 2017. The case was settled just before going to trial, marking the first resolution of fraud allegations related to the Part D contracting process.
The attorney representing the whistleblower stated that Humana's actuaries had prepared different financial predictions for its internal use and the government’s bidding process. Humana has not admitted liability in the settlement but agreed to the payout to resolve the claims.
USAA Settles Military Fee Lawsuit for $62.4 Million
USAA, a financial services company serving military members and their families, has agreed to pay $62.4 million to settle a lawsuit accusing it of overcharging service members and veterans on interest rates and fees.
The settlement, filed in a federal court in Elizabeth City, North Carolina, requires approval from a U.S. District Judge. Despite the settlement, USAA denies any wrongdoing.
The lawsuit involves tens of thousands of service members with credit card and loan accounts at USAA Savings Bank and USAA Federal Savings Bank since May 4, 2009. The plaintiffs claimed that USAA violated the Servicemembers Civil Relief Act, Military Lending Act, and Truth in Lending Act by failing to cap interest rates at 6% during active duty and not permanently forgiving interest exceeding that rate.
According to the lawsuit, service members were unaware of the issue until 2021 when USAA sent "misleading" correspondence and courtesy checks that underreported the refunds they were owed. The lawsuit also contends that previous settlements, which led to USAA sending out 859,000 checks in response to consent orders with the Office of the Comptroller of the Currency in 2019 and 2020, did not fully compensate affected members.
In response, USAA stated that it disagrees with the allegations but opted to settle to avoid prolonged and costly litigation. The company also highlighted that it charges interest rates lower than legally required, and noted that part of the settlement will be used to reissue uncashed checks from the previous settlement.
The plaintiffs' attorneys may request up to 27.5% of the settlement, amounting to $17.7 million, for legal fees and expenses. USAA, founded in 1922, serves around 13.5 million members and was recently ranked 103rd on Fortune's list of the 500 largest U.S. companies.
Judge Rejects $335M UFC Settlement in Fighter Pay Lawsuit
A U.S. judge has rejected a proposed $335 million settlement in two class action lawsuits against Ultimate Fighting Championship (UFC), which accuse the organization of suppressing martial arts fighters' wages.
The decision sets the stage for a trial where damages could potentially exceed $1 billion. The U.S. District Judge in Las Vegas set a tentative trial date for October 24 and stated he would issue a written opinion explaining his decision. He had previously raised concerns about the settlement, particularly regarding how the funds would be distributed among class members. A hearing is scheduled next month to discuss the next steps.
The UFC, owned by TKO Group Holdings under Endeavor, has denied any wrongdoing. The lawsuits, initially filed in 2014, allege that UFC used its market dominance to stifle competition by acquiring or blocking rival promoters and using exclusive contracts to keep fighters locked into the organization. The plaintiffs argue that these practices suppressed fighters’ pay.
In August of last year, the judge allowed 1,200 fighters who competed in UFC bouts between 2010 and 2017 to sue as a class action, with estimated damages ranging between $811 million and $1.6 billion. Another lawsuit involved fighters from mid-2017 to the present.
In a June court filing, plaintiffs’ attorneys stated that nearly 500 fighters from the settlement classes would have received over $100,000 each. The fighters' legal team has vowed to press forward as directed by the court but remains open to further negotiations with UFC.