Class Actions

It’s one thing to face down your accuser in court – its quite another to simultaneously take on thousands of them. Corporations can still defend themselves against class actions, but the rules for doing so are constantly changing.

This year, a new “class” is in session
If you’re on the defense, you might not be able to swiftly defeat class certification by making a federal preemption argument. It is anticipated that the current administration may back away from preemption of state and federal laws, which could make it easier for classes to get certified. 

On the state level, a recent California Supreme Court decision, In re Tobacco II Cases, has challenged Proposition 64’s amendment to the Unfair Competition Law (UCL). Proposition 64, designed to limit frivolous lawsuits against solid businesses, limited class participation to people who had directly lost money or property due to the defendant’s actions. Victory for Tobacco II’s participants sets a precedent that might make it easier for new classes to gather steam. 

Military precision for class warfare
While most cases painstakingly build momentum up to the closing argument, the crucial step to ensure victory against a class action comes first – certification. The moment you learn that a class is forming against you, you need to bring in class action specialists. If there is even the slightest learning curve for your attorneys, you will quickly lose advantage. 

Manatt class action attorneys work seamlessly with the firm’s nationally recognized lawyers  in areas such as healthcare, insurance, financial services, environmental law, advertising and marketing, consumer products, employment, and technology. We’re ready to move decisively from the first call, and quite often, we’ll be the ones calling you to alert you to brewing trouble. 

Many of our lawyers came from the public sector, bringing with them trusted government relationships at the Federal Trade Commission, Food and Drug Administration, the Consumer Product Safety Commission, and every level of the court system. These relationships can help ensure that your position is clearly heard and given the fair consideration you deserve.

If you’re in California, our lawyers can provide particular insight into the state’s UCL, Business and Professions Code Section 17200 et seq. As UCL litigation has increased throughout the past decade, we’ve successfully represented defendants, plaintiffs and friends of the court. Our lawyers are so well versed in the nearly 70 years of related case law and legislative history that we’ve helped shape judicial interpretation of the UCL by taking first-impression cases to the courts of appeal and California Supreme Court. 

The biggest victories come outside the courtroom
In class actions, court is your last option. To help prevent class actions from even being filed, we provide pre litigation counseling so you can proactively address possible  issues before they arise. If a class action is filed, we have an exemplary record in defeating class certifications (see below). If the case moves forward, we will explore every option for advantageous settlement unless trial becomes your most favorable option. 

Manatt represents clients in complex federal and state class actions that span a wide variety of claims, including copyright and database infringement, employment, wage and hour, discrimination, false and deceptive advertising, pattern and practice discrimination claims, antitrust, violations of the Securities Exchange Act, unfair competition, and unfair business practices.   

We can anticipate the plaintiff’s moves because we are well versed in strategy from both sides of the bench.  In fact, one of Manatt’s biggest class action victories was when we triumphed for a class of more than 2,000 retired NFL players who sued their union for short-changing them on licensing revenue (Adderley v. NFL Players Association).  Class representative and NFL Hall of Famer Herb Adderley later commented, “I won three Super Bowls and this feels better than all of them combined.” 

Manatt in Action 

  • Lindner v. The Reader’s Digest Association, Inc. (U.S. District Court):  We represented Readers Digest in a putative class action alleging violation of federal and California laws regarding mailing and billing of allegedly unordered merchandise. Our motions to dismiss were granted prior to certification proceedings for 10 of the 11 plaintiffs, and our motion for summary judgment was granted with regard to the  remaining plaintiff. 
  • Barnett v. Downey Savings and Loan Association, F.A.  We successfully defended Downey Savings in a putative class action alleging that the practice of purchasing conditional sales contracts from auto dealers violated state antitrust and unfair competition statutes.  The case was dismissed on federal preemption grounds.  
  • Davis v. Pacific Capital Bank: (U.S. District Court, Central District of California): We defended Pacific Capital Bank in a putative class action under California’s UCL alleging that our client failed to refund allegedly unearned interest charged in connection with income tax refund anticipation loans. Our motion to dismiss was granted with prejudice and later affirmed on appeal.    
  • Mancini v. Ticketmaster.  We defended long time client Ticketmaster against a putative class action alleging violations of California unfair competition and consumer protection statutes, as well as fraud, conversion, and breach of contract relating to enrollment of ticket purchasers in an online discount coupon program. We defeated the plaintiffs’ motion for class certification.  
  • In Re Computer Monitor Litigation.  We coordinated the defense of a consumer class action alleging false advertising, unfair competition, and related claims based on alleged misrepresentations of the size of computer monitor screens.  We represented the computer manufacturer and two retailers.  The court approved global settlement of all class claims after sustaining a demurrer on res judicata grounds based on settlement of an action filed by the California Attorney General. 
  • Boone v. SNF Management.  We successfully defended a nursing home management company in a putative class action alleging claims under the UCL and Consumer Legal Remedies Act (CLRA) based on alleged violations of the California Health and Safety Code.  We got the case dismissed at the initial pleading stage.  
  • Meeks v. CashCall, Inc.  On behalf of CashCall, we defeated claims under the UCL and CLRA statutes that our client offered loans at unconscionable interest rates. The plaintiffs voluntarily dismissed their case after an order sustaining defendant’s demurrer to all claims.