/raid1/www/Hosts/bankrupt/CAR

/raid1/www/Hosts/bankrupt/CAR_Public/091103.mbx C L A S S A C T I O N R E P O R T E R Tuesday, November 3, 2009, Vol. 11, No. 217 Headlines 24 HOUR FITNESS: Class Action Lawsuit Certified for RICO Fraud ALACER CORP: Calif. Suit Claims Emergen-C Ad Claims Are False BANK OF AMERICA: Accused in Fla. of Abetting $37 Mil. Ponzi Scam CARIBBEAN PETROLEUM: Explosion Leads to Class Action in D. P.R. CEMENT & CONCRETE MAKERS: Sued for Price Fixing in S.D. Fla. LENNAR RENAISSANCE: Calif. Lawsuit Says 150 Homes Are Defective LIVE NATION: Ticketholder Sues Concert Producer for Excess Fees MERCEDES HOMES: Brevard County Suit Says 8,000 Homes Defective METLIFE INSURANCE: Lawsuit Complains About Annuity Anomalies MUSIC MERCHANTS: Hausfeld Joins Guitar Price Fixing Litigation NORTHSTAR AEROSPACE: Settles Cambridge Class Action Litigation PULTE HOME: Sued in N.D. Calif. for Predatory Marketing & Lending REDBOX AUTOMATED: Sued for Illegal Late Fees in St. Clair County SMITH-GREEN COMMUNITY: Students Fight Punishment for MySpace Pics SONY COMPUTER: Suit Claims PlayStation Fix Damages Hardware STEINER SPORTS: Suit Alleges Yankees Memorabilia Misrepresented STUDENT LOAN XPRESS: Forgiving $112 Million in Student Loans SWITCH & DATA: Sahreholder Wants Equinix to Pay More Money TARGET CORP: Denies Alegations in Ill. "Airborne" Lawsuit TEXAS: Motorists Challenge Secret Tollway Invoicing Fee UNILEVER: Class Action Suit Complains Margarine Isn't Natural WEST VIRGINIA: Disabled Kids' Program Cuts Lead to Class Action ********* 24 HOUR FITNESS: Class Action Lawsuit Certified for RICO Fraud -------------------------------------------------------------- One-and-a-half million former members of 24 Hour Fitness, the gym popularized by the television show "Biggest Loser," are permitted to pursue a nationwide class action case against 24 Hour Fitness for violating the Racketeer Influenced and Corrupt Organizations Act (RICO) and the Electronic Fund Transfer Act (EFTA), per a decision by the United States Court of Appeals, Ninth Circuit. Friedman vs. 24 Hour Fitness USA, Inc., et al., Case No. 06-06282 (C.D. Calif.) (Matz, J.), alleges that 24 Hour Fitness continues to deliberately take monthly payments out of consumer's accounts after the member cancels membership. The gym insists all members pay their monthly memberships by electronic transfer. It is estimated that 24 Hour Fitness is making $1.6 million a month that it is getting from former members' bank and credit card accounts by defrauding such companies as Bank of America and J.P. Morgan Chase, which process payments via the national financial system networks for electronic fund transfers. "24 Hour Fitness is the modern day Al Capone, using the electronic banking and credit card system as Al Capone and his mob used the Tommy gun," says Los Angeles trial lawyer Robert L. Esensten, Esq., of Wasserman Comden & Casselman. "This is exactly what the RICO laws were designed to stop. Apparently 24 Hour Fitness's annual revenues of over one billion dollars a year are not enough for its owners, despite the fact that today's consumers are struggling to make every dollar count." 24 Hour Fitness is considered the nation's largest fitness chain, owned by the private equity firm Forstmann, Little & Co., based in New York. It uses celebrities Shaquille O'Neal, Magic Johnson, Andre Agassi, Derek Jeter, and Lance Armstrong to promote the gym and to sell monthly memberships. For instance, 24 Hour Fitness teamed up with O'Neal to create new 24 Hour Fitness Shaq Sports Clubs, the first of which opened in Miami in 2005. The 24 Hour Fitness class action will now proceed to trial. If the gym is found in violation of the RICO laws, the company faces potential liability for more than $100 million. The Plaintiffs are represented by: Carey G. Been, Esq. Jeffrey F. Keller, Esq. Kathleen R. Scanlan, Esq. KELLER GROVER LLP 425 Second Street Suite 500 San Francisco, CA 94107 Telephone: 415-543-1305 - and - David Bruce Casselman, Esq. Melissa M. Harnett, Esq. Gregory B. Scarlett, Esq. WASSERMAN COMDEN CASSELMAN & PEARSON 5567 Reseda Blvd., Ste. 330 P.O. Box 7033 Tarzana, CA 91357-7033 Telephone: 818-705-6800 24 Hours Fitness is represented by: Page R. Barnes, Esq. Michael E. Delehunt, Esq. Kevin Francis Woodall, Esq. FOLEY AND LARDNER One Maritime Plaza, 6th Floor San Francisco, CA 94111 Telephone: 415-434-4484 - and - Christopher John Heck, Esq. Tami S. Smason, Esq. FOLEY AND LARDNER LLP 555 South Flower Street, Suite 3500 Los Angeles, CA 90017-2300 Telephone: 213-972-4500 - and - Jose-Manuel A. De Castro, Esq. DE CASTRO LAW GROUP PC 9000 W. Sunset Boulevard, Suite 450 Los Angeles, CA 90069 Telephone: 310-270-9877 - and - Anthony B. Lewis, Esq. THE LEWIS LAW FIRM 8265 W. Sunset Blvd., Suite 209 West Hollywood, CA 90046 Telephone: 323-848-9992 ALACER CORP: Calif. Suit Claims Emergen-C Ad Claims Are False ------------------------------------------------------------- Courthouse News Service reports that Alacer Corp. falsely claims that its "Emergen-C" supplement "boosts" the immune system and prevents illness, a class action claims in Santa Ana, Calif., Federal Court. A copy of the Complaint in Gianino, et al. v. Alacer Corporation, Case No. SACV09-01247-CJC (C.D. Calif.), is available at: http://www.courthousenews.com/2009/10/29/CCA.pdf The Plaintiffs are represented by: Michael R. Reese, Esq. REESE RICHMAN LLP 875 Avenue of the Americas, 18th Floor New York, NY 10001 Telephone: 212-643-0500 - and - Paul M. Weiss, Esq. Michael J. Lotus, Esq. George K. Lang, Esq. FREED & WEISS LLC 111 West Washington Street, Suite 1331 Chicago, IL 60602 Telephone: 312-220-0000 - and - Kevin T. Hoerner, Esq. Brian T. Kreisler, Esq. BECKER, PAULSON, HOERNER & THOMPSON, P.C. 5111 West Main Street Belleville, IL 62226 Telephone: 618-235-0020 - and - Richard J. Burke, Esq. RICHARD J. BURKE LLC 1010 Market Street, Suite 660 St. Louis, MO 63101 - and - Jay M. Wolman, Esq. Saba B. Hashem, Esq. D'ANGELO & HASHEM, LLC 6 Beacon St., Suite 505 Boston, MA 02108 Telephone: 617-624-9777 - and - Deborah Clark-Weintraub, Esq. Patrick J. Sheehan, Esq. WHATLEY DRAKE & KALLAS, LLC 1540 Broadway, 37th Floor New York, NY 10036 Telephone: 212-447-7070 BANK OF AMERICA: Accused in Fla. of Abetting $37 Mil. Ponzi Scam ---------------------------------------------------------------- Melissa Nordbeck at Courthouse News Service reports that Bank of America aided and abetted a $37 million Ponzi scheme disguised as an "investment club" called Diamond Ventures, a class action claims in Federal Court. The class claims the bank knew or should have known that 27-year-old Beau Diamond was running a scam. The class claims that if BofA followed its own policies of discovery, monitoring, tracking and evaluation of financial activities it would have discovered the scam. Mr. Diamond allegedly stuffed his BofA bank account with more than $37 million from April 2006 through December 2008. Mr. Diamond holds no securities or commodities license, had no management team or employees and no legitimate business model, his banking activities reflect no investment business or business-generated revenue, only payouts to clients made from new clients' deposits -- a classic Ponzi scheme, according to the complaint. Many of the investors lost their life's savings. They say BofA facilitated the fraud by allowing offshore wire transfers, commingling of accounts, access to unlicensed trading in foreign exchange markets, and a banking platform that facilitated conversion of investors' funds. BofA's "Premier Bankers" authorized wire transfers of more than $700,000 to Mr. Diamond's personal account, according to the complaint, including charges at the MGM Grand Hotel and the Wynn Las Vegas. Mr. Diamond allegedly sent a string of deceptive e-mail messages to investors in December 2008, blaming payment delays on banking errors, then said he had changed banks, then that the checks were in the mail. Then, according to the complaint, he used his victims' money to go to Costa Rica, then announced that all of their money had been lost due to the economic crisis. The class wants their money back. They say BofA aided and abetted fraud, conversion, and breach of fiduciary duty. A copy of the Complaint in Lawrence, et al. v. Bank of America, N.A., Case No. 09-cv-2162 (M.D. Fla.), is available at: http://www.courthousenews.com/2009/10/27/PonziTampa.pdf The Plaintiffs are represented by: Steven N. Berk, Esq. Michael Lewis, Esq. BERK LAW PLLC 1225 Fifteenth Street, N.W. Washington, DC 20005 Telephone: 202-232-7550 - and - Andre R. Perron, Esq. OZARK, PERRON & NELSON, P.A. 2816 Manatee Avenue West Bradenton, FL 34205 Telephone: 941-750-9760 - and - Randolph L. Smith, Esq. LAKIN SMITH, P.A. 1401 Manatee Avenue West, Suite 1100 Bradenton, FL 34205 Telephone: 941-746-5529 CARIBBEAN PETROLEUM: Explosion Leads to Class Action in D. P.R. --------------------------------------------------------------- Monica Mendez at Courthouse News Service reports that 30 fuel tanks exploded in a suburb of San Juan, Puerto Rico, and residents of the area shaken by the explosions have filed a federal class action seeking damages from Caribbean Petroleum Co. The explosion measured 2.8 on the Richter scale and was felt as far away as the Virgin Islands. Houses and windows trembled and the burning fuel mushroomed into a dark cloud of toxic gases. The Oct. 23 explosions were followed by fires that burned for days. More than 1,500 people were evacuated, some with gas masks, and many say they continue to suffer from respiratory illnesses, and have not been able to return home. Businesses had to close down and electric power went out. The class claims Caribbean Petroleum's defective equipment contributed to the disaster. A copy of the Complaint in Suarez, et ux., et al. v. Caribbean Petroleum Corporation and Mapfre Insurance Company, Case No. 09- cv-2095 (D. P.R.), is available at: http://www.courthousenews.com/2009/10/29/GasExplode.pdf The Plaintiffs are represented by: Eric M. Quetglas-Jordan, Esq. Jose F. Quetglas Jordan, Esq. QUETGLAS LAW OFFICE P.O. Box 16606 San Juan, PR 00908 Telephone: 787-722-0635 - and - Kirk Wood, Esq. WOOD LAW FIRM, LLC 2900 1st Avenue South, Suite A Birmingham, AL 35233 Telephone: (205) 612-0243 CEMENT & CONCRETE MAKERS: Sued for Price Fixing in S.D. Fla. ------------------------------------------------------------ Labaton Sucharow LLP filed Action Ready Mix Concrete Inc., et al. v. Cemex Corp., et al., Case No. 09-cv-23187 (S.D. Fla.) (Altonaga, J.) -- a class action lawsuit on behalf of all individuals or entities that purchased Portland Cement or Ready Mix Concrete in Florida. The Proposed Class is seeking treble damages and injunctive relief under Section 1 of the Sherman Act. Jay L. Himes, Esq., Partner and Co-Chair of Labaton Sucharow's Antitrust Practice Group stated, "We intend to vigorously prosecute on behalf of our clients that have been hurt as a result of this major price fixing scandal." Plaintiffs allege that Defendants eliminated competition in the markets for Cement and Concrete by charging artificially high prices for these products in Florida from at least January 1, 2000 to the present. Plaintiffs further allege that Defendants facilitated this conspiracy through in-person meetings, telephone conversations, and other communications. The complaint details the specific employees who participated in the conspiracy as well as the locations at which illegal pricing was discussed. Defendants are Cemex Corp., Florida Rock Industries, Inc., Holcim (US), Inc., Lafarge North America, Inc., Lehigh Cement Company, Suwannee American Cement LLC, Titan America LLC and Votorantim Cimentos North America, Inc. Plaintiffs are represented by: Jay L. Himes, Esq. LABATON SUCHAROW LLP 140 Broadway New York, NY 10005 Telephone: 212-907-0700 LENNAR RENAISSANCE: Calif. Lawsuit Says 150 Homes Are Defective --------------------------------------------------------------- Courthouse News Service reports that Lennar Renaissance built 150 defective homes in the Parkway Plaza development in Sacramento, a class action claims in Superior Court. A copy of the Complaint in Zavala, et ux. v. Lennar Renaissance, Inc., Case No. 34-2009-00061399 (Calif. Super. Ct., Sacramento Cty.), is available at: http://www.courthousenews.com/2009/10/27/RealEst.pdf The Plaintiffs are represented by: Luke P. Ryan, Esq. Michael T. Quinn, Esq. SINNICK & RYAN LLP 1810 State Street San Diego, CA 92101 Telephone: 619-239-5900 LIVE NATION: Ticketholder Sues Concert Producer for Excess Fees --------------------------------------------------------------- Barbara Leonard at Courthouse News Service reports that Live Nation abuses its power as the world's largest concert producer by charging ticketholders for parking whether there is sufficient space for parking or not, and whether the concertgoers need to park or not, a class action claims in Federal Court. The company also charges a "charity fee" for a charity it does not identify, the class claims. Lead plaintiff Clifford Davidson says that when he bought a ticket to a Live Nation event at the PNC Bank Arts Center he had to pay a parking fee for each ticket, plus a 25-cent "charity fee" for an unnamed charity. Mr. Davidson says he could not decline the parking charge or pay one parking fee per carload, and adds that the PNC amphitheater has more seats than parking spaces. Live Nation controls hundreds of concert venues, including PNC, through ownership or contract, according to the complaint. Davidson says the company made more than $5 million by overcharging tens of thousands of New Jersey concertgoers in the past 6 years. Even when Live Nation sold tickets through contractors such as Ticketmaster, which it did until it began doing its own ticketing in mid-2008, the class claims Live Nation imposed exploitative charges. In response to customers' complaint, Live Nation removed the $6 parking charge in March this year, but added it right back to the ticket price, the class claims. Davidson says other concert venues such as Nassau Coliseum and the Meadowlands charge $7 to $15 flat rates for parking, while parking at Jones Beach is free. He seeks an injunction and treble damages from Live Nation, Live Nation Worldwide and GSAC Partners for violations of the Consumer Fraud Act. A copy of the Complaint in Davidson v. Live Nation, Inc., dba PNC Bank Arts Center, et al., entered as Doc. 2233 in Case No. 33-av-00001 (D. N.J.), is available at: http://www.courthousenews.com/2009/10/27/LiveNation.pdf The Plaintiff is represented by: Olimpio Lee Squitieri, Esq. SQUITIERI & FEARON, LLP 2600 Kennedy Blvd., Suite 1K Jersey City, NJ 07306 Telephone: 201-200-0900 MERCEDES HOMES: Brevard County Suit Says 8,000 Homes Defective -------------------------------------------------------------- Courthouse News Service reports that Mercedes Homes and Solid Wall Systems built 8,000 homes with defective walls, a class action claims in a $120 million demand in Brevard County Court, Melbourne, Fla. A copy of the Complaint in Nunn, et us., et al. v. Mercedes Homes, Inc., et al., Case No. 05-2009-CA-63869 (Fla. Cir. Ct., 18th J. Cir., Brevard Cty.) (Dugan, J.), is available at: http://www.courthousenews.com/2009/10/29/RealEst.pdf The Plaintiffs are represented by: Joseph G. Colombo, Sr., Esq. MOMMERS & COLOMBO 2351 W. Eau Gallie Blvd., Suite 8 Melbourne, FL 32935 Telephone: 321-751-1000 METLIFE INSURANCE: Lawsuit Complains About Annuity Anomalies ------------------------------------------------------------ Courthouse News Service reports that Metlife Insurance defrauded customers and unjustly profited by failing to attach guaranteed minimum income benefit riders to annuities, a class action claims in Burlington County Court, N.J. A copy of the Complaint in Stephens v. Gentilello, et al., Case No. BUR-L-3489-09 (N.J. Super. Ct., Burlington Cty.), is available at: http://www.courthousenews.com/2009/10/29/Insure.pdf The Plaintiff is represented by: Louis Silverman, Esq. Michael P. Lalli, Esq. SILVERMAN & FODERA, P.C. 1835 Market Street, Suite 2600 Philadelphia, PA 10103 Telephone: 215-561-2100 MUSIC MERCHANTS: Hausfeld Joins Guitar Price Fixing Litigation -------------------------------------------------------------- The BLT: The Blog of LegalTimes reports that one of Washington, D.C.'s leading antitrust lawyers has jumped into the fray over guitar price fixing. Michael Hausfeld, Esq., founder of Hausfeld LLP, is one of the lawyers behind one of the latest anti-trust class actions against the National Association of Music Merchants (NAMM), Guitar Center and major guitar manufacturers over an alleged industry-wide plan to prop up instrument prices. Hausfeld is joined on the suit, filed Oct. 13 at the U.S. District Court for the District of Columbia, by Hausfeld LLP partner Hilary Ratway-Scherrer, Esq., and a team from Philadelphia-based Spector Roseman Kodroff & Willis, including partners Jeffrey Kodroff, Esq., Jeffrey Corrigan, Esq., and Jay Cohen, Esq. The controversy over guitar prices has been simmering since March, when the Federal Trade Commission issued a cease and desist order to NAMM after settling charges that the group had fostered anti-competitive behavior using its trade shows. Instrument makers and retailers allegedly met at the events to establish price floors for their products. Since September, lawyers have filed a series of class actions in the Southern District of California against the companies involved. The BLT also reports that: -- Guitar Center, the nation's largest instrument retailer, is represented by: Charles H. Samel, Esq. LATHAM & WATKINS LLP 355 South Grand Avenue Los Angeles CA 90071-1560 Telephone: 213-891-8285 -- David Mayer, Esq., at Howrey LLP entered an appearance for the National Association of Music Merchants; and -- Guitar maker Fender is represented by: Lawrence G. Scarborough, Esq. J. Alex Grimsley, Esq. BRYAN CAVE LLP One Renaissance Square Two North Central Ave., Suite 2200 Phoenix, AZ 85004-4406 Telephone: 602-364-7000 The Class Action Reporter previously covered Giambusso v. Nat'l Assoc. of Music Merchants, Inc., et al., Case No. 09-cv-2002 (S.D. Calif.), on Sept. 17, 2009. NORTHSTAR AEROSPACE: Settles Cambridge Class Action Litigation -------------------------------------------------------------- The Ontario Superior Court of Justice approved a settlement agreement in the environmental class action litigation against Northstar Aerospace, Inc., and its wholly owned subsidiary, Northstar Aerospace (Canada) Inc. Northstar says that the C$4.55 million (C$1.55 million in cash and C$3.0 million by way of a promissory note due within three years which can be repaid in cash or, subject to regulatory approval, in Northstar common shares at the option of Northstar Canada) settlement amount has been paid. Under the settlement terms, a further settlement payment of C$0.5 million is due in March 2010. This settlement will not affect Northstar Canada's ongoing remediation efforts. The plaintiffs, all property owners in the neighborhood adjacent to Northstar Canada's facility in Cambridge, Ontario, sought damages for diminution of property values and other losses associated with environmental issues relating to the historical operation of the Cambridge facility. The plaintiffs sought to certify the lawsuit as a class proceeding on behalf of all property owners in the neighborhood as at August 23, 2005. The Company did not admit any liability under the settlement and received full and final releases for the claims made in the proceeding. The plaintiffs' lawsuit has been dismissed with prejudice. Northstar Aerospace, Inc. -- http://www.nsaero.com/-- is North America's leading independent manufacturer of flight critical gears and transmissions. Northstar Aerospace is a public company (TSX:NAS) with operating subsidiaries in the United States and Canada. Its principal products include helicopter gears and transmissions, accessory gearbox assemblies, rotorcraft drive systems and other machined and fabricated parts. It also provides maintenance, repair and overhaul of helicopter transmissions. The Company's executive offices are located in Chicago, Illinois. Its plants are located in Chicago, Illinois; Phoenix, Arizona; Anderson, Indiana; and Milton and Windsor, Ontario. PULTE HOME: Sued in N.D. Calif. for Predatory Marketing & Lending ----------------------------------------------------------------- Courthouse News Service reports that Pulte Home Corp. and Pulte Mortgage are accused of predatory marketing, lending and appraisals, in a class action in San Francisco Federal Court. A copy of the Complaint in Kaing v. Pulte Homes, Inc., et al., Case No. 09-cv-05057 (N.D. Calif.), is available at: http://www.courthousenews.com/2009/10/27/HomeMorts.pdf The Plaintiff is represented by: Shana E. Scarlett, Esq. HAGENS BERMAN SOBOL SHAPIRO LLP 715 Hearst Avenue, Suite 202 Berkeley, CA 94710 Telephone: 510-725-3000 - and - Steve W. Berman, Esq. Thomas E. Loeser, Esq. HAGENS BERMAN SOBOL SHAPIRO LLP 1301 Fifth Avenue, Suite 2900 Seattle, WA 98101 Telephone: 206-623-7292 - and - Andrew Oldham, Esq. 901 Campus Way, Suite 248 Campbell, CA 95008 Telephone: 888-842-4930 REDBOX AUTOMATED: Sued for Illegal Late Fees in St. Clair County ---------------------------------------------------------------- Joe Harris at Courthouse News Service reports that Redbox has collected more than $100 million in illegal and punitive late fees from customers, a class action claims in St. Clair County Circuit Court. Lead plaintiff Laurie Piechur says Redbox offers DVD rentals for $1 a night, with no late fees, but charges late fees if the movie is just one minute late. Instead of charging a legal late fee, which would be a reasonable estimate of the actual damages Redbox incurs for a late return, Redbox charges a $1 a day penalty up to $25, the complaint states. Ms. Piechur says the fee is more than the retail value of a brand-new DVD and is well above the $7 Redbox charges to sell used DVDs. Ms. Piechur proposes two nationwide classes: -- The first consists of all U.S. citizens who from Jan. 1, 2002, until final judgment rented a DVD from Redbox, returned the disc within 24 hours or after 9:00 p.m. of the initial rental date and incurred a $1 fee. -- The second consists of all U.S. citizens who rented a DVD from Redbox from Jan. 1, 2002, until final judgment and incurred the maximum $25 charge for the disc. A copy of the Complaint in Piechur v. Redbox Automated Retail, LLC, Case No. 09-L-0562 (Ill. Cit. Ct., 20th J. Dist., St. Clair Cty.), is available at: http://www.courthousenews.com/2009/10/27/Redbox.pdf The Plaintiff is represented by: James F. Kelly, Esq. Jeffrey A.J. Millar, Esq. BRENT COON & ASSOCIATES, P.C. 12201 Big Bend Blvd., Suite 200 St. Louis, MO 63122 Telephone: 314-822-0732 - and - Thomas G. Maag, Esq. Peter J. Maag, Esq. WENDLER LAW, P.C. 900 Hillboro, Suite 10 Edwardsville, IL 62025 Telephone: 618-692-0011 SMITH-GREEN COMMUNITY: Students Fight Punishment for MySpace Pics ----------------------------------------------------------------- Tim Hull at Courthouse News Service reports that two high school students filed a constitutional class action against their school district and the principal who banned them from extracurricular activities after seeing MySpace pictures of the girls kissing and licking a phallus-shaped lollipop and wearing lingerie decorated with dollar bills. The federal lawsuit seeks to reverse the sports ban and get the unfair policy that gives the principal unfettered power and violates students' constitutional rights. Sophomore plaintiffs T.V. and M.K. say the pictures were taken at a slumber party over the summer, off school grounds. They say they posted them on their MySpace pages because they are "humorous." An unknown person printed the pictures and gave them to Churubusco High School Principal Austin Couch, who suspended the girls from sports for the fall season based on the school's "code of conduct" for extracurricular activities. Named as defendant with Mr. Couch is the Smith-Green Community School Association. The code of conduct state that a principal can exclude a student from extracurricular activities if his or her conduct "in or out of school reflects discredit upon Churubusco High School . . . or creates a disruptive influence on the discipline, good order, moral, or educational environment." The girls say they were allowed to play for part of the season after they went to counseling and apologized to an all-male panel of coaches. They say the policy is unfair because it gives Couch the power to punish without appeal or recourse. The girls say they have been "humiliated" and are afraid to send e-mails and pictures to their friends. They want Mr. Couch and Smith-Green enjoined from punishing students for out-of-school behavior that is "in no way disruptive of school activities," and they want their records expunged. A copf of the Complaint in T.V. and M.K. v. Smith-Green Community School Corporation, et al., Case No. 09-cv-00290 (N.D. Ind.), is available at: http://www.courthousenews.com/2009/10/28/Lollipop.pdf The Plaintiffs are represented by: Kenneth J. Falk, Esq. ACLU of Indiana 1031 E. Washington St. Indianapolis, IN 46202 Telephone: 317-635-4059 SONY COMPUTER: Suit Claims PlayStation Fix Damages Hardware ----------------------------------------------------------- Courthouse News Service reports that Sony offered a download that was supposed to fix a software problem in PlayStation 3, but it actually damaged the hardware, and Sony charges $150 to fix each unit it damaged, a class action claims in San Francisco Federal Court. A copy of the Complaint in Evers, et al. v. Sony Computer Entertainment America, Inc., Case No. 09-cv-5126 (N.D. Calif.), is available at: http://www.courthousenews.com/2009/10/29/VideoGames.pdf The Plaintiffs are represented by: Rosemary M. Rivas, Esq. Mark Punzalam Esq. Tracy Tien, Esq. FINKELSTEIN THOMPSON LLP 100 Bush Street, Suite 1450 San Francisco, CA 94104 Telephone: 415-398-8700 - and - Mila F. Bartos, Esq. FINKELSTEIN THOMPSON LLP The Duval Foundry 1050 30th Street, NW Washington, DC 20007 Telephone: 202-337-8000 - and - Gordon M. Fauth, Jr., Esq. LITIGATION LAW GROUP 1801 Clement Ave., Suite 101 Alameda, CA 94501 Telephone: 510-238-9610 STEINER SPORTS: Suit Alleges Yankees Memorabilia Misrepresented --------------------------------------------------------------- The Cardboard Connection reports that in a most unexpected development the New York Yankees and Steiner Sports are facing a class-action lawsuit in federal court for selling, of all things, misrepresented and refurbished Yankees memorabilia. The lawsuit -- Lefkus v. Steiner Sports Memorabilia, Inc., et al., Case No. 09-cv-08874 (S.D.N.Y.) (Castel, J.) -- focuses on the Bronx Bombers' recent fire sale of seats salvaged from the old Yankee Stadium. The lead plaintiff in the case, John Lefkus, claims that he paid in excess of $2,000 to buy the very seats where he sat during his 23 seasons as a New York Yankees season-ticket holder. In the lawsuit Mr. Lefkus says that instead of receiving the actual seats he paid for he was sent to randomly selected refurbished stadium seats. The Yankees sold the stadium seats for $1,500 per pair, advertising them as "authentic, unrefurbished Yankee Stadium seats." In fact, Mr. Lefkus even paid an extra $500 premium to buy his specific seats. Mr. Lefkus says that despite bearing the trusted tamperproof MLB authentication seal, the seats he received appeared to be dismantled during the demolition of the stadium "and later reassembled without regard to which seat parts went with which seats." According to the lawsuit the stadium seats received by the plaintiff included both new and old parts, were stripped and repainted a different color and even featured different armrests. Mr. Lefkus also alleges that Steiner Sports put the incorrect seat number on one of the newly produced seats and tried to pass off a non-aisle seat as an aisle seat. The newly levied lawsuit seeks over $5 million in damages from the New York Yankees, Yankee-Steiner Collectibles, Steiner Sports Memorabilia, and Steiner Sports Marketing, claiming they engaged in deceptive practices, breach of warranty, and false advertising. The Plaintiff is represented by: Elke Andrea Hofmann, Esq. Amanda Claire Scuder, Esq. Ralph M. Stone, Esq. SHALOV STONE & BONNER & RUCCO LLP 485 Seventh Avenue, Suite 1000 New York, NY 10018 Telephone: (212)-239-4340 STUDENT LOAN XPRESS: Forgiving $112 Million in Student Loans ------------------------------------------------------------ Joe Harris at Courthouse News Service reports that Student Loan Xpress will forgive $112.7 million in debt to students who attended a now-bankrupt helicopter school. The agreement settles a 12-state class action and concludes an 18-month investigation of Silver State Helicopters. Silver State Helicopters operated 34 flight schools throughout the country and Student Loan Xpress was its preferred student lender. Silver State closed in 2008, leaving most of its students owing Student Loan Xpress substantial amounts of money for training and certification they never received. Student Loan Xpress must forgive up to 75 percent of the amount borrowed by most Silver State students. The percentage will be based upon the number of flight certifications each student earned. Student Loan Xpress is also prohibited from providing any negative credit information to credit agencies about the settling students, and is required, when acting as a preferred lender to a nonaccredited school or institution, to provide written disclosures to each prospective student borrower that the loan does not constitute an endorsement of the school or of the quality of education offered. Student Loan Xpress is a subsidiary of CIT Group, Inc. The Oct. 10, 2009, edition of the Class Action Reporter provided coverage about CIT's public disclosures in this matter. SWITCH & DATA: Sahreholder Wants Equinix to Pay More Money ---------------------------------------------------------- Courthouse News Service reports that Switch & Data Facilities shareholders say the company is selling itself too cheaply to Equinix and its subsidiary, Sundance Acquisition, for $689 million or $19.06 a share, in Delaware Chancery Court. A copy of the Complaint in Gibbs v. Switch & Data Facilities Company, Inc., et al., Case No. 5027 (Del. Ch. Ct.), is available at: http://www.courthousenews.com/2009/10/29/SCA.pdf The Plaintiff is represented by: Seth D. Rigrodsky, Esq. Brian D. Long, Esq. Timothy J. MacFall, Esq. RIGRODSKY & LONG, P.A. 919 N. Market St., Suite 980 Wilmington, DE 19801 Telephone: 302-295-5310 - and - Lionel Z. Glancy, Esq. Richard A. Miniskas, Esq. GLANCY BINKOW & GOLDBERG LLP 1801 Avenue of the Stars, Suite 311 Los Angeles, CA 90067 Telephone: 310-201-9150 TARGET CORP: Denies Alegations in Ill. "Airborne" Lawsuit --------------------------------------------------------- Amelia Flood at The St. Clair Record reports that Target denies that it violated the Illinois Consumer Fraud Act by selling a generic form of the immune supplement "Airborne." The Minnesota-based retailer filed its answer in Buehlhorn v. Target, Case No. 08-L-667 (Ill. Cir. Ct., St. Clair Cty.) (Young, J.), on Oct. 13, 2009. As reported in the Class Action Reporter on Sept. 15, 2009, the Plaintiff amended his complaint to expand the class to include Florida, Minnesota and California consumers. Target objected, but the request was granted. TEXAS: Motorists Challenge Secret Tollway Invoicing Fee ------------------------------------------------------- David Lee at Courthouse News Service reports that a class of motorists says the Texas Department of Transportation has no right to charge a $1 invoice fee for drivers who use the state's ZipCash video toll system. The class claims the state gave drivers no notice of the fee and has no statutory authority to charge it. Lead plaintiff Mary Kemp says she drove the State Highway 121 toll road in September 2007 and did not have change to pay the toll upon exit, nor did she have a toll tag in her car, which is tied to a pre-established account. She decided to use the remaining payment option, the video toll lanes that result in a bill being sent to her home. Kemp says that based on the signs on the tollway exit, she believed she would be billed 60 cents. But the state added the undisclosed $1 invoice fee. She calls that fraud and an unconstitutional taking, deceptive trade and a consumer law violation. She also sued the TexasTollways, the Texas Turnpike Authority and the State of Texas. She seeks refunds, an injunction and costs. A copy of the Complaint in Kemp v. Saenz, et al., Case No. 09-cv-02020 (N.D. Tex.), is available at: http://www.courthousenews.com/2009/10/28/TexasTolls.pdf The Plaintiff is represented by: Thomas M. Corea, Esq. Kenneth P. Trosclair, Esq. THE COREA FIRM, P.L.L.C. 1201 Elm Street, Suite 4150 Dallas, TX 75270 Telephone: 214-953-3900 UNILEVER: Class Action Suit Complains Margarine Isn't Natural ------------------------------------------------------------- Karina Brown at Courthouse News Service reports that a federal class action claims Unilever markets its margarine as "healthy" though it contains toxic trans fats. Unilever pushes I Can't Believe It's Not Butter!, Country Crock and Imperial Margarine as cholesterol-free alternatives to butter and promotes it as "natural" and "nutritious," though it knows trans fats are unnatural and dangerous, according to the complaint. Trans fats (trans-isomer fatty acids) are found in trace amounts in red meat, but most of the trans fats humans consume are byproducts of the hydrogenation process, according to the complaint in Los Angeles Federal Court. Created in 1901, artificial trans fats were initially regarded as a "wonder product" because they are cheap and can be stored indefinitely, the lawsuit states. But the class claims trans fats were later found to contribute to cardiovascular disease, type 2 diabetes and cancer. California, New York City and Denmark have all banned or restricted the use of the artificial substance, the class claims. The class wants damages and an order directing Unilever to replace its misleading marketing campaign with a "corrective" one. A copy of the Complaint in Red, et al. v. Unilever United States, Inc., and Unilever PLC, Case No. 09-cv-07855 (C.D. Calif.), is available at: http://www.courthousenews.com/2009/10/30/Margarine.pdf The Plaintiffs are represented by: Gregory S. Weston, Esq. THE WESTON FIRM 5127 Lotus Street San Diego, CA 92107 Telephone: 619-255-7098 - and - Jared H. Beck, Esq. BECK & LEE BUSINESS TRIAL LAWYERS 28 West Flagler St., Suite 555 Miami, FL 33130 Telephone: 305-789-0072 WEST VIRGINIA: Disabled Kids' Program Cuts Lead to Class Action --------------------------------------------------------------- Ryan Abbott at Courthouse News Service reports that West Virginia is cutting medical benefits for disabled and mentally retarded children without due process, a class action claims in Federal Court. Parents of children eligible for benefits under the Children with Disabilities Community Service Program are getting letters stating generic reasons for the termination of their in-home nursing assistance, according to the complaint. The letters give parents no idea why the assistance that some have received for years is being reduced or taken away altogether. The class claims the state's notification process violates the due process clause of the Constitution. It wants West Virginia enjoined from arbitrarily cutting benefits. It also asks the court to force the state to come up with a better way of notifying people when their benefits are being reduced. A copy of the Complaint in Tammy W. v. Hardy, et al., Case No. 09-cv-1170 (S.D. W.Va.), is available at: http://www.courthousenews.com/2009/10/29/WVaKids.pdf The Plaintiff is represented by: Bren J. Pomponio, Esq. Daniel F. Hedges, Esq. 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