/raid1/www/Hosts/bankrupt/CAR

/raid1/www/Hosts/bankrupt/CAR_Public/120116.mbx C L A S S A C T I O N R E P O R T E R Monday, January 16, 2012, Vol. 14, No. 11 Headlines AVIS RENT A CAR: Faces Suit Over IGLTA and NGLCC Discounts BALLY TOTAL: Lifetime Members File Class Action BELL EXPRESSVU: Faces Class Action Over Excessive Late Fees CHARIOT CARRIERS: Recalls 114,000 Bike Trailers & Conversion Kits COVELLLI ENTERPRISES: Faces Discrimination Class Action DEMDACO: Recalls 5,480 Candleholder Collection Tea Light Candles FANNIE MAE: Lenawee County Takes Part in Transfer Tax Suit KOSMOS ENERGY: Sued in Texas for Misleading Investors on IPO MICRON TECHNOLOGY: Paid $45-Mil. Under Price-Fixing Suits Deal MICRON TECHNOLOGY: Still Defends Price-Fixing Suits in Canada PFIZER: Faces Class Action in Canada Over Neurontin(R) Drug QUIBIDS: Faces Class Action Over Deceptive Trade Practices SCOTTRADE INC: Sued Over Illegal Fees on Day Trades STATE OF CALIFORNIA: Settles BUI Class Action for $5.6 Million STATE OF CONNECTICUT: Medicaid Recipients File Class Action SYMANTEC CORP: Accused of Defrauding "Scareware" Consumers TABOO GENTLEMEN'S CLUB: Nude Dancer Files Suit Over Unpaid Wages ********* AVIS RENT A CAR: Faces Suit Over IGLTA and NGLCC Discounts ---------------------------------------------------------- Matt Reynolds at Courthouse News Service reports that in a federal class action, a woman claims Avis Rent A Car violated her civil rights by offering discounted rates to gay and lesbian customers, but not to her. Lynn Evenchik of Pima County, Arizona, says she paid more than $300 for a 1-week car rental from an Avis outlet at San Diego International Airport. Ms. Evenchik says she could have got a discount if she belonged to the Gay and Lesbian Travel Association or the National Gay and Lesbian Chamber of Commerce. She is not, though, so she seeks an injunction and damages under California's Unruh Civil Rights Act. Ms. Evenchik filed a class action "on behalf of consumers who have suffered from this illegal and unfair business practice." "Avis is one of the world's leading automobile rental brands, and maintains numerous locations throughout the State of California, including at least 12 in San Diego County," the complaint states. "In September 2010, Avis entered into a three-year partnership with the International Gay and Lesbian Travel Association ('IGLTA') pursuant to which it provides discounted rental rates to gay and lesbian car renters. Avis' Worldwide Discount ('AWD') Code Q200430 provides such renters with discounts of up to 25 percent off of Avis' regular rates. Similarly, Avis offers discounted rates to members of the National Gay and Lesbian Chamber of Commerce ('NGLCC'). These discount programs are intended to generate additional business for Avis, in return for which Avis pays a commission to the referring organizations. This practice violates California's Unruh Civil Right Act (the 'Unruh Act'), which prohibits businesses from offering discounts to customers based upon, inter alia, their sexual orientation. These unfair and unlawful business practices result in many consumers who are not affiliated with those organizations paying substantially higher rental rates than those made available to gay and lesbian renters who use the above AWD Codes," according to the complaint. Ms. Evenchik says members of the National Gay and Lesbian Chamber of Commerce get discounts of up to 20 percent. She says Avis gives the two organizations a 3 percent commission on rentals booked through their Web sites. "Although Avis offers many discounted rates and AWD [Avis Worldwide Discount] codes, the IGLTA/NGLCC discounts are among the best that Avis makes generally available and is frequently a better rate than small businesses and other affinity groups obtain," the complaint states. Ms. Evenchik says: "On July 7, 2011, plaintiff rented a vehicle from Avis at its San Diego International Airport location for a period of one week. She was charged a total of $311.36 for the rental. Plaintiff alleges on information and belief that she could have obtained a better rental rate by using the IGLTA or NGLCC AWD codes. Plaintiff is not a member of or associated with either of those organizations and was not aware of those discount codes at the time of her rental." Ms. Evenchik is represented by Eric Benink with Krause, Kalfayan, Benink & Slavens, of San Diego. Mr. Benink did not immediately respond to a request for an interview. Avis declined to comment. A copy of the Complaint in Evenchick v. Avis Rent A Car System, LLC, Case No. 12-cv-00061 (S.D. Calif.), is available at: http://www.courthousenews.com/2012/01/11/Avis.pdf The Plaintiff is represented by: Eric J. Benink, Esq. David B. Zlotnick, Esq. Mary K. Wyman, Esq. KRAUSE, KALFAYAN, BENINK & SLAVENS, LLP 550 West C Street, Suite 530 San Diego, CA 92101 Telephone: (619) 232-0331 E-mail: ebenink@kkbs-law.com mwyman@kkbs-law.com BALLY TOTAL: Lifetime Members File Class Action ----------------------------------------------- Jack Bouboushian at Courthouse News Service reports that Bally Total Fitness faces a federal class action accusing it of depriving lifetime members of gym privileges by selling their memberships to L.A. Fitness, and in one case, telling a member he had to drive 5 hours to use his membership. Lead plaintiffs Juan Dorado and Michael Markzon say they both bought lifetime memberships to Bally Total Fitness; Mr. Dorado says he bought four lifetime memberships. "In 2011, Bally sold rights to many of its members and their life- time memberships to defendant LA Fitness (LAF); as well as sold certain Bally clubs to LAF," the complaint states. "Yet, there are geographic areas in the U.S. that do not have LA Fitness facilities. "As of December 1, 2011, there are no longer Bally-owned clubs in the Chicago area, all having been sold to LAF. "In the New York City area, Bally sold to LA Fitness, some of its members (along with their lifetime memberships); however, there are no LA Fitness facilities in New York City. "In Seattle, Bally sold to LA Fitness, some of its members (along with their lifetime memberships); however, LA Fitness facilities in Seattle will not honor the membership if it was purchased in Texas. "For other potential plaintiffs throughout the U.S., there are no LA Fitness facilities nearby at which they can work out. For others, Bally did not assign their contracts to LA Fitness, but did sell all of the Ballys in their geographic area to LA Fitness." Mr. Dorado adds: "LA Fitness is not honoring any of Dorado's lifetime memberships; although it purchased all of the Chicago area Bally clubs. Plaintiff Dorado has been told that he and his family can work out as long as they do so at a Bally facility in Saint Louis, Missouri. Mr. Dorado lives in the Chicago area, approximately 5 hours away." Mr. Markzon says he "has worked out at the same Bally facility in Chicago for the past approximately 11 years." But "LA Fitness is not honoring the membership because it was purchased in Kansas." The men say that in some cases LA Fitness "will not allow access to LA Fitness by former Bally members unless they buy a new membership." Messrs. Dorado and Markzon seek class damages from Bally and LA Fitness for consumer fraud, deceptive business practices, breach of contract and violations of the Honest Services Act. A copy of the Complaint in Dorado, et al. v. Bally Total Fitness Holding Corp., et al., Case No. 12-cv-00137 (N.D. Ill.), is available at: http://www.courthousenews.com/2012/01/11/BallyCA.pdf The Plaintiffs are represented by: Christopher Cooper, Esq. LAW OFFICE OF CHRISTOPHER COOPER, INC. 500 N. Michigan Avenue, Suite 1514 Chicago, IL 60611 - or - 3620 W. 80th Lane Merrillville, IN 46410 Telephone: (312) 371-6752 (219) 228-4396 E-mail: cooperlaw3234@gmail.com BELL EXPRESSVU: Faces Class Action Over Excessive Late Fees ----------------------------------------------------------- Claude Gagnon on Jan. 11 introduced a motion to authorize the institution of a class action against the corporation Bell Expressvu regarding the charging since June 1, 2010 of an annual interest rate of 42.58% on the amounts paid after the expiry date prescribed for payment. The unilateral modification by Bell Expressvu of the annual interest rate applicable on late fees represents a 58% increase compared to the annual interest rate of 26.82% that was charged to its clients before June 1st, 2010. This class action concerns all persons who have paid late fees since June 1, 2010 pursuant to a contract with Bell Expressvu for television services. This new class action follows the decision of the Honourable Lucie Fournier j.c.s. rendered in another case on December 16, 2011 which certified the class action against Bell Canada and Bell Mobility Inc. regarding the charging since June 1, 2010 of an annual interest rate of 42.58% on the amounts paid after the expiry date prescribed for payment. All persons concerned by the present motion to authorize the institution of this class action, may, if they wish provide us with their relevant information by completing the form obtained by consulting the Web site of the petitioner's lawyers at http://www.paquettegadler.com For further information: For any additional information regarding the present press release, you may contact Me Guy Paquette or Me Mathieu Charest- Beaudry, of the law firm Paquette Gadler Inc. at 514-849-0771 or you may also consult the web site of the firm at http://www.paquettegadler.comunder the section Class action. CHARIOT CARRIERS: Recalls 114,000 Bike Trailers & Conversion Kits ----------------------------------------------------------------- The U.S. Consumer Product Safety Commission, in cooperation with Thule Child Transport Systems Ltd., doing business as Chariot Carriers, of Calgary, Canada, announced a voluntary recall of about 44,000 Chariot bicycle trailers and 70,000 bicycle trailer conversion kits. Consumers should stop using recalled products immediately unless otherwise instructed. It is illegal to resell or attempt to resell a recalled consumer product. The bicycle trailer's hitch mechanisms can crack and break, causing the trailer to detach from the bicycle. This poses an injury hazard to children in the bicycle trailer. The firm has received 24 incident reports worldwide, three of which occurred in the United States, involving the bicycle trailers and the conversion kits. No injuries have been reported. Chariot Carriers convert to strollers, jogging strollers and bike, hike or ski trailers. This recall involves Chariot bicycle trailers and bicycle trailer conversion kits. Recalled trailers have serial numbers from 1205-xxxx to 0710-xxxx (representing manufacture dates December 2005 through July 2010) located the left side on the frame. Recalled conversion kits have hitch arms that attach the carrier to the bicycle with model number "20100503" printed on a label attached to the aluminum tube next to the warning label. Older conversion kits without a label, but with a release push button located where the hitch arm inserts into the carrier, are also being recalled. Pictures of the recalled products are available at: http://www.cpsc.gov/cpscpub/prerel/prhtml12/12085.html The recalled products were manufactured in Canada and sold at specialty bicycle stores nationwide and on various websites from December 2005 through August 2010 for between $400 and $925 for Chariot bicycle trailers and from October 2002 through August 2011 for between $40 and $70 for bicycle trailer conversion kits. Consumers should immediately stop using the recalled bicycle trailers and bicycle trailer conversion kits and contact Chariot Carriers for a free repair kit which the consumer can install. For more information, contact Chariot Carriers at (800) 262-8651 between 10:00 a.m. and 6:30 p.m. Eastern Time Monday through Friday, or visit the firm's Web site at http://www.chariotcarriers.com/ COVELLLI ENTERPRISES: Faces Discrimination Class Action ------------------------------------------------------- Rich Lord, writing for Pittsburgh Post-Gazette, reports that a Panera Bread franchisee had a policy of keeping "fat, black or ugly" people off of the cash registers and out of management positions, according to a lawsuit filed in federal court on Jan. 11 that seeks class action status. The lawsuit by Guy M. Vines, 21, of Castle Shannon, claims that Panera franchisee Covelli Enterprises discouraged managers from hiring African Americans, and then relegated them to menial, back- of-the-shop roles. It follows a lawsuit filed in November by a former Panera Bread manager who said he was fired under pretenses after he objected to such policies. Both Mr. Vines and the former manager are represented by attorney Sam Cordes. "Here there was a policy that we don't promote, nor do we allow people that are black, fat or ugly to work up in the front of our store," said Mr. Cordes on Jan. 11. "If you're black, we don't allow you to work in the front, and we don't promote you into management." Covelli Enterprises responded with a statement from its director of corporate affairs, Allen Ryan. "These complaints represent a coordinated attempt by two disgruntled former employees to discredit the company for a profit motive," Mr. Ryan wrote. "The timing of Mr. Vines's complaint . . . is suspect in that is was filed only a few weeks after his attorney filed a lawsuit against Covelli on behalf of Mr. Vines's former manager whom ironically Mr. Vines's complaint charges with discriminating against him by assigning him to the least desirable tasks within the caf??." Mr. Vines, who is black, worked at Panera at the Galleria in Mt. Lebanon from November 2009 through August 2011, according to the complaint. While he was there, a district manager told a store manager that Sam Covelli, of Covelli Enterprises, might give them both a "death sentence" if he saw Mr. Vines working a cash register, because Mr. Vines was a "that" -- code for an African American. Because Mr. Vines was a good employee, the store manager continued to periodically put him on the cash register, and tried to promote him, the complaint said. He was repeatedly reprimanded, however, and was not allowed to promote Mr. Vines, it said. Mr. Vines eventually was forced to quit because of the policies, the complaint said. "The fact is that Mr. Vines walked off his shift in the wake of being disciplined for repeatedly violating the company's dress code policy and other company policies related to health and safety standards," Mr. Ryan wrote. Mr. Cordes said he now works at another restaurant. He seeks actual, compensatory and punitive damages. Mr. Vines seeks to represent the interests of all African Americans hired at Panera Bread branches owned by Covelli Enterprises, which is based in Warren, Ohio. Mr. Cordes said that the class of plaintiffs does not include overweight or "ugly" people. The earlier lawsuit was filed by Scott Donatelli, who managed the Galleria location from 2007 through mid-2011. Mr. Cordes said he objected to the Covelli Enterprises personnel policies, and was dismissed when he needed extra time off to recover from surgery. Covelli Enterprises filed an answer to the complaint broadly denying accusations of discrimination, and saying the franchisee "maintained policies prohibiting unlawful conduct and [kept] a work environment free from unlawful discrimination." That case is assigned to U.S. District Judge Terrence F. McVerry. DEMDACO: Recalls 5,480 Candleholder Collection Tea Light Candles ---------------------------------------------------------------- The U.S. Consumer Product Safety Commission, in cooperation with importer, DD Traders Inc., doing business as Demdaco, of Leawood, Kansas, and manufacturer, Tien Chi Art Co Ltd. of Xiamen City, Fujian Province, China, announced a voluntary recall of about 5,480 Tea Lights in Carruth Candleholder Collection Sets. Consumers should stop using recalled products immediately unless otherwise instructed. It is illegal to resell or attempt to resell a recalled consumer product. The tea light can burn with an excessive flame height, posing a fire hazard to consumers. The firm is aware of one fire that resulted in minor property damage. There are no reports of injuries. The recalled tea lights were sold as part of the Carruth Candleholder Collection sets. The Carruth candleholder sets are resin votive candle holders with a glass insert that holds a tea light. The stock number is printed on a label on the bottom of the candleholders. The tea lights are white. The following eight models and stock numbers are included in this recall: Butterfly, 17708; Smile, 17709; Sun, 17710; Roots of Love, 17711; Sunflower, 17712; Hummingbird, 17713; Bunny, 17714; Friendship, 17715. Pictures of the recalled products are available at: http://www.cpsc.gov/cpscpub/prerel/prhtml12/12084.html The recalled products were manufactured in China and sold by home decorating and gift stores nationwide from January 2010 to November 2011 for about $14. Consumers should immediately stop using the tea light candle and contact Demdaco for a free replacement tea light. For additional information, consumers should contact Demdaco toll-free at (888) 336-3226 between 8:00 a.m. and 5:00 p.m. Central Time Monday through Friday or visit the firm's Web site at http://www.demdaco.com/ FANNIE MAE: Lenawee County Takes Part in Transfer Tax Suit ---------------------------------------------------------- Daily Telegram reports that Lenawee County is taking part in a class action lawsuit seeking to force two federal loan agencies to pay property transfer taxes. Lenawee County commissioners were briefed on the dispute on Jan. 10. Genesee County started the class action against Fannie Mae and Freddie Mac, the federal mortgage loan agencies that are refusing to pay state and local transfer taxes, said county treasurer Marilyn Woods. "The amount of transfer tax that we would be receiving is substantial," said register of deeds Vicki Daniels. The federal agencies are refusing to pay taxes when they foreclose on mortgaged properties and when they resell the real estate. The state treasurer has ruled the federal agencies cannot exempt themselves from the transfer taxes, said Ms. Woods. Ms. Daniels said some counties are refusing to record deeds without the payments. Lenawee and other counties are recording the deeds and sending the documents to Lansing to deal with the unpaid taxes. KOSMOS ENERGY: Sued in Texas for Misleading Investors on IPO ------------------------------------------------------------ Courthouse News Service reports that Kosmos Energy misled investors in its $594 million initial public offering, making materially false statements about gross oil production from the Jubilee field and concealing design defects that cost the company hundreds of millions of dollars to remediate and will keep the wells from producing for several years, a class of investors claim. A copy of the Complaint in Brady v. Kosmos Energy Ltd., et al., Case No. 12-00251 (Tex. Dist. ct., Dallas Cty.), is available at: http://www.courthousenews.com/2012/01/11/kosmos.pdf The Plaintiff is represented by: Theodore C. Anderson, Esq. Robert M. Behrendt, Esq. KILGORE & KILGORE 3109 Carlisle Street, Suite 200 Dallas, TX 75204 Telephone: (214) 969-9099 MICRON TECHNOLOGY: Paid $45-Mil. Under Price-Fixing Suits Deal -------------------------------------------------------------- As of December 1, 2011, Micron Technology, Inc. paid $45 million into an escrow account in accordance with its $67 million settlement resolving price-fixing lawsuits, according to the Company's January 10, 2012, Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarter ended December 1, 2011. At least sixty-eight purported class action price-fixing lawsuits have been filed against the Company and other DRAM suppliers in various federal and state courts in the United States of America and in Puerto Rico on behalf of indirect purchasers alleging a conspiracy to increase DRAM prices in violation of federal and state antitrust laws and state unfair competition law, and/or unjust enrichment relating to the sale and pricing of DRAM products during the period from April 1999 through at least June 2002. The complaints seek joint and several damages, trebled, in addition to restitution, costs and attorneys' fees. A number of these cases have been removed to federal court and transferred to the U.S. District Court for the Northern District of California for consolidated pre-trial proceedings. In July, 2006, the Attorneys General for approximately forty U.S. states and territories filed a lawsuit in the U.S. District Court for the Northern District of California. The complaints allege, among other things, violations of the Sherman Act, Cartwright Act, and certain other states' consumer protection and antitrust laws and seek joint and several damages, trebled, as well as injunctive and other relief. On October 3, 2008, the California Attorney General filed a similar lawsuit in California Superior Court, purportedly on behalf of local California government entities, alleging, among other things, violations of the Cartwright Act and state unfair competition law. On June 23, 2010, the Company executed a settlement agreement resolving these purported class-action indirect purchaser cases and the pending cases of the Attorneys General relating to alleged DRAM price-fixing in the United States. Subject to certain conditions, including final court approval of the class settlements, the Company agreed to pay approximately $67 million in aggregate in three equal installments over a two-year period. As of December 1, 2011, the Company paid $45 million into an escrow account in accordance with the settlement agreement. MICRON TECHNOLOGY: Still Defends Price-Fixing Suits in Canada ------------------------------------------------------------- Micron Technology, Inc. continues to defend price-fixing class action lawsuits pending in Canada, according to the Company's January 10, 2012, Form 10-Q filing with the U.S. Securities and Exchange Commission for the quarter ended December 1, 2011. Three putative class action lawsuits alleging price-fixing of DRAM products also have been filed against the Company in Quebec, Ontario, and British Columbia, Canada, on behalf of direct and indirect purchasers, asserting violations of the Canadian Competition Act and other common law claims. The claims were initiated between December 2004 (British Columbia) and June 2006 (Quebec). The plaintiffs seek monetary damages, restitution, costs, and attorneys' fees. The substantive allegations in these cases are similar to those asserted in the DRAM antitrust cases filed in the United States. Plaintiffs' motion for class certification was denied in the British Columbia and Quebec cases in May and June 2008, respectively. Plaintiffs subsequently filed an appeal of each of those decisions. On November 12, 2009, the British Columbia Court of Appeal reversed, and on November 16, 2011, the Quebec Court of Appeal also reversed, the denial of class certification and remanded the cases for further proceedings. PFIZER: Faces Class Action in Canada Over Neurontin(R) Drug ----------------------------------------------------------- Notice of certification of a class action relating to the drug Neurontin(R) (gabapentin) is being disseminated on Jan. 11. The action alleges that use of Neurontin(R), a prescription anticonvulsant that is commonly prescribed for off-label uses, results in an increased risk of experiencing suicidal behavior. The action applies to all Canadians who were prescribed and ingested the drug Neurontin(R) prior to August 5, 2004. Among the issues the court approved for determination at trial are whether Neurontin(R) is ineffective and/or defective or unfit for the purpose for which it was intended and sold, and whether Pfizer breached a duty to warn class members or materially misrepresented any of the risks of harm from using Neurontin(R). Another issue approved for determination is whether the class can elect to require Pfizer to account for all or part of the gross revenue or net income received from the sale of Neurontin(R). Class members are represented by the law firm Siskinds LLP in London, Ontario, and the law firms Dunn & Company and Hanson Wirsig Matheos in Vancouver, British Columbia. Michael J. Peerless, a partner with the law firm Siskinds LLP, said that "We are very pleased that individuals across Canada who experienced suicidal behavior from using Neurontin(R), and their family members, will be allowed to go forward with their claims on a class basis. We look forward to taking the next steps in this litigation and to continue pressing forward in representing the claims of these individuals." It is too early at this stage to quantify the claims of class members if the action is successful, but it is anticipated that the amount will be significant. Any Canadians who have used Neurontin(R) are encouraged to visit http://www.classaction.caor call Joan Stewart at 1-800-461-6166 ext. 2382. Michael J. Peerless, Esq. can be reached at: Siskinds LLP 680 Waterloo Street P.O. Box 2520 London, Ontario N6A 3V8 Telephone: 519-660-7866 E-mail: mike.peerless@siskinds.com QUIBIDS: Faces Class Action Over Deceptive Trade Practices ---------------------------------------------------------- Brett Bundale, writing for Herald Business, reports that a penny auction Web site registered in Nova Scotia is becoming one of the most popular -- and controversial -- online bidding companies. QuiBids of Oklahoma bills itself as a fun and fast-paced auction Web site where consumers can score coveted retail products at absurdly low prices. But critics have assailed the Web site as a scam, and it has been targeted by a class action lawsuit alleging deceptive and unfair trade practices. The hubbub has raised questions about the company's foray into Canada and its decision to register in Nova Scotia. QuiBids public relations director Jill Farrand says the company chose to register in this province after weighing different options. But Geoffrey Loomer, a professor at Dalhousie University's Schulich School of Law, said U.S. companies often register in Nova Scotia for liability and tax reasons. "A Nova Scotia unlimited liability company is a very common vehicle used by U.S. parent companies to bring their business into Canada because of tax reasons," Mr. Loomer said. "There is not really a Canadian tax advantage, but there is a significant U.S. tax advantage." Mr. Loomer said registering as a limited liability company also effectively shields QuiBids in the U.S. from legal responsibility. For example, if the Canadian arm of the business faces a lawsuit, the U.S. assets would not be at risk. Also, Nova Scotia, unlike some other provinces, does not require the principals of the company to live here. According to the province's Registry of Joint Stock Companies, QuiBids' president, chief operating officer, director and secretary all live in Oklahoma City. The only local contact is Charles Reagh, a lawyer at Stewart McKelvey in Halifax. QuiBids began operating in 2009 in the U.S. and last year in Canada, the United Kingdom and Australia. Although the Better Business Bureau in Canada hasn't received any complaints about the penny auction Web site, the Oklahoma arm of the business council has processed more than 700 complaints. But most of those were the result of a buyer's misunderstanding of the auction Web site's design and policies, according to a report by the Oklahoma bureau. Don MacKinnon, president and CEO of the Better Business Bureau in Halifax, said it's "buyer beware" when it comes to penny auction Web sites. "The consumer has to be very careful before jumping into these things because this is how these companies make money," he said. "Buyers should make sure they know what they are getting into and read the rules and fine print before getting involved." QuiBids uses a pay-to-participate model that requires users to buy bids to take part in auctions. Although items that are up for auction only increase by a penny at a time, each bid actually costs the bidder 60 cents. An Apple iPad, for example, could be won for as little as $25.50. But because each of the 2,550 bids costs 60 cents, QuiBids actually takes in more than $1,500 for a product that retails for less than half that amount. Mr. Farrand said the auction Web site is well-received by participants everywhere it is offered. "We've had a lot of acceptance from consumers," she said. "Over the past couple of years, we've had really a lot of success. Of course we have our challenges to overcome, but we've done really well." However, a class action lawsuit filed against QuiBids in 2010 claimed that the Web site was unfair and more akin to a casino than an auction. Mr. Farrand dismissed charges that the Web site is misleading or similar to gambling. "It's unfortunate we have those criticisms, but we do want to be as transparent as possible," she said. "One of our goals is to inform our customers, so everywhere on our site we explain how we operate, (and) we have the QuiBids 101 section that gives tips on how to participate on our site. "But we're definitely not a gambling site," Mr. Farrand added. "No one ever has to walk away empty-handed or out of money." The auction Web site also has a Buy It Now feature that allows unsuccessful bidders to take the total amount of a failed bid and apply it toward the retail price of the item, plus fees, taxes and shipping and handling. SCOTTRADE INC: Sued Over Illegal Fees on Day Trades --------------------------------------------------- Joe Harris at Courthouse News Service reports that Scottrade illegally collected extra fees on day trades, a class action claims in St. Louis County Court. Lead plaintiff Irina Borzakovskaia says Scottrade let its pattern day-trading customers trade without regard to the equity in their account, in violation of Financial Industry Regulatory Authority (FINRA) rules. "By failing to follow FINRA rules plaintiffs were harmed and/or Scottrade was otherwise enriched by collecting fees on trades that should not have been allowed," the complaint states. The SEC defines a pattern day trader as one who executes four or more day trades in five business days in a margin account, if the number of day trades are more than 6 percent of the customer's total trading activity for that same five-day period. FINRA rules contain minimum equity requirements and limit buying power for pattern day traders. Ms. Borzakovskaia and two other named plaintiffs say Scottrade allowed them to make trades without regard to those rules from 2008 to Jan. 8, 2010. The class consists of all Scottrade customers who engaged in pattern day trading who were allowed to make trades in violation of FINRA rules. They seek disgorgement of Scottrade's profits from the trading fees and actual and punitive damages for negligence, breach of fiduciary duty, breach of contract, unjust enrichment and violations of the Missouri Merchandising Practices Act. Scottrade and four Scottrade officials are named as defendants. A copy of the Complaint in Borzakovskaia, et al. v. Scottrade, Inc., et al., Case No. 12SL-CC00084 (Mo. Cir. Ct., St. Louis Cty.), is available at: http://www.courthousenews.com/2012/01/11/Scottrade.pdf The Plaintiffs are represented by: Julia M. Lutovich, Esq. LUTOVICH LAW, LLC 8151 Clayton Road, Suite 200 St. Louis, MO 63117 Telephone: (314) 898-3054 E-mail: julia@lutovichlaw.com - and - Jack B. Spooner, Esq. SPOONER LAW, LLC 7733 Forsyth, Suite 2000 Clayton, MO 63105 Telephone: (314) 725-4300 E-mail: jspooner@primary.net STATE OF CALIFORNIA: Settles BUI Class Action for $5.6 Million -------------------------------------------------------------- The Los Angeles Times reports that the California Department of Motor Vehicles will pay $5.6 million to settle a class-action lawsuit over its practice of suspending the driving privileges of people who have been convicted of boating under the influence. The case stems from the 2005 arrest and conviction of a man for boating under the influence on the Colorado River. After DMV suspended his driver's license and required him to attend a class on alcohol addiction -- the same penalties issued for driving under the influence -- he sued to contest the practice. In March 2007, a Superior Court judge ruled that the DMV was misinterpreting state law and barred the department from suspending driving privileges for BUI convictions. After several more years of litigation, the two sides agreed to settle the case last year. The $5.6 million settlement was approved on Jan. 9. After attorney's fees, the money will go to the 753 boaters who had their driving privileges suspended after BUI convictions. STATE OF CONNECTICUT: Medicaid Recipients File Class Action ----------------------------------------------------------- Christine Stuart at Courthouse News Service reports that Connecticut has so "systematically stripped of workers" its Department of Social Services that the state can no longer "process Medicaid applications in a timely manner," delaying or denying medical aid to nearly 5,000 people, according to a federal class action. Lead plaintiff Paul Shafer says he is "one of nearly 5,000 Connecticut residents whose applications for Medicaid have been pending well beyond the 45-day time period generally required for the processing of Medicaid applications. At the end of November 2011, nearly 55 percent of all of the Medicaid applications were pending beyond the federally mandated time limits. As a result of the defendant's failure or refusal to process Medicaid applications in a timely manner, he has been unable to access Medicaid coverage for his anti-seizure medication or other medically necessary treatment for his seizure disorder." Class representatives Mr. Shafer and Joshua Harder sued Connecticut Department of Social Services Commissioner Roderick Bremby. Mr. Harder says he is "one of the thousands of individuals whose applications for Medicaid have been approved, subject to a designated 'spend-down' requirement. Every month, several hundred such 'medically needy' individuals are newly found to be eligible for Medicaid subject to this requirement. Although plaintiff Harder provided documentation in October 2011, in the form of medical bills, of compliance with his 'spend-down' requirement for the six month period between July 1 to December 2011, he was not provided Medicaid benefits. As a result of the defendant's failure or refusal to provide Medicaid benefits in a timely manner to persons who have demonstrated compliance with their respective 'spend-down' requirements, Plaintiff Joshua Harder has been unable to access Medicaid coverage for his needed medical treatment. Neither of the named plaintiffs has received timely or adequate notice of a reason for the delay in the processing or the receipt of their Medicaid benefits." Under the Medicaid spend-down requirement (42 C.F.R. 435.831(d)), "'medically needy' individuals receive a notice from DSS every six months advising them that they are eligible for Medicaid once they satisfy the designated spend-down amount for that period, an amount which is equal to the amount by which their income exceeds the medically needy income limit in their part of the state plus any applicable disregard, multiplied by six," the complaint states. "The notices advise these 'medically needy' individuals that their Medicaid benefits will be activated upon the submission of any medical bills for the current six month period, or any unpaid medical bills from a previous period, meeting or exceeding their particular spend-down amount, and that, upon such submission, they will be eligible for full Medicaid benefits until the end of that six month period, at which point a new spend-down period will begin with potentially a different spend-down amount. "In response to these notices, 'medically needy' recipients routinely present medical bills to demonstrate satisfaction of their spend-down amounts. "The same DSS eligibility workers who process Medicaid applications commonly process medical bills submitted in an attempt to satisfy spend-down amounts. "Because of their high caseloads, these workers are not able to timely process these medical bills to determine that spend-down amounts have been satisfied, resulting in eligible recipients waiting weeks or months for the calculation to be completed and Medicaid benefits to be provided. "Sometimes, the processing of medical bills submitted to establish satisfaction of Medicaid spend-downs is so untimely that the end of the six month spend-down period arrives before the DSS worker has been able to review the medical bills submitted." The complaint was filed by two attorneys with New Haven Legal Assistance. A spokesman for the Connecticut Department of Social Services said that filing a lawsuit was not the best way to handle the situation. "We are disappointed that legal services has chosen to file a lawsuit that will consume precious time and resources, rather than working with us on practical approaches to re-investing in DSS," David Dearborn said in a statement. "It's common knowledge that the agency has dealt with major, double-digit percentage staffing losses over the last decade and increasing monthly Medicaid (19.5%) and SNAP (81.0%) caseloads over the past five years. To meet these critical needs, we are working with the Office of Policy and Management to refill existing vacancies and hire additional staff; and we have begun the process of upgrading the entire IT infrastructure." Legal Assistance attorney Shelley White replied: "We realize of course that the state has had budgetary problems. But even under these circumstances, states must comply with federal law if they want to continue to receive hundreds of millions of dollars of federal reimbursement under Medicaid. One of the most basic requirements of federal law is that applications for Medicaid must be processed timely, in a specified number of days, so that Medicaid is actually available when needed." Ms. White's co-counsel Sheldon Toubman added that "previous administrations seemed to not value the essential benefit programs administered by DSS and thus severely cut back on its staffing in successive budgets. It is unfortunate that Governor Malloy's Administration and his Commissioner of Social Services inherited such a severely hobbled agency. "However, given his commitment to preserving the safety net, we are optimistic that Governor Malloy will step up to the plate and recognize the need to reverse these cutbacks and thus avoid jeopardizing federal funds." DSS spokesman Mr. Dearborn countered: "As Commissioner Rod Bremby has emphasized, we can't correct and resolve issues resulting from lack of investment over the past decade in a matter of months. However, the commissioner and agency are committed to doing so as promptly and as cost-effectively as possible." Mr. Toubman bristled at the notion that the lawsuit would tie up resources, saying this has been an issue for years. As for the IT system, he said the earliest those improvements will be made is 16 months from now. "How does that help someone today can't get onto Medicaid?" Mr. Toubman asked in a telephone interview. He said what the state needs now is more staff. He suggested that many workers retired last October and could be hired back. Plaintiffs seek declaratory and injunctive relief, enjoining the state from failing or refusing to process applications for Medicaid and failing to provide Medicaid benefits to eligible people within the time frames required by federal law. A copy of the Complaint in Shafer, et al. v. Bremby, Case No. 12- cv-00039 (D. Conn.), is available at: http://www.courthousenews.com/2012/01/11/SocServ.pdf The Plaintiffs are represented by: Sheldon Toubman, Esq. NEW HAVEN LEGAL ASSISTANCE ASSOC. 426 State Street New Haven, CT 06510-2018 Telephone: (203) 946-4811 E-mail: stoubman@nhlegal.org - and - Shelley White, Esq. New Haven Legal Assistance Assoc. 426 State Street New Haven, CT 06510-2018 Telephone: (203) 946-4811 E-mail: swhite@nhlegal.org SYMANTEC CORP: Accused of Defrauding "Scareware" Consumers ---------------------------------------------------------- James Gross, individually and on behalf of all others similarly situated v. Symantec Corporation, a Delaware corporation, Case No. 5:12-cv-00154 (N.D. Calif., January 10, 2012) is brought to obtain redress for, and put an end to, Symantec's alleged defrauding of consumers across the country through the deceptive design and sale of certain of its software products. Through a common deceptive scheme, Mr. Gross alleges, Symantec uniformly defrauds consumers into purchasing the three products at issue in this lawsuit -- PC Tools Registry Mechanic, PC Tools Performance Toolkit and Norton Utilities, collectively the "Scareware" -- which Symantec represents as capable of identifying and fixing a wide range of PC errors, privacy threats, and other computer problems. He contends that the Scareware does not conduct any diagnostic testing on the computer, and instead, invariably report, in an extremely ominous manner, that harmful errors, privacy risks, and other computer problems exist on the user's PC, regardless of the real condition of the computer. Mr. Gross is a citizen of the state of Washington. Symantec is a Delaware corporation with headquarters in Mountain View, California. Symantec is one of the world's largest developers of computer security software, and also sells a variety of products that it claims will increase the speed, performance and stability of a consumer's personal computer, protect against privacy risks, remove harmful errors and "clean up" hard drives. The Plaintiff is represented by: Sean P. Reis, Esq. EDELSON MCGUIRE, LLC 30021 Tomas Street, Suite 300 Rancho Santa Margarita, CA 92688 Telephone: (949) 459-2124 Facsimile: (949) 459-2123 E-mail: sreis@edelson.com - and - Jay Edelson, Esq. Rafey Sarkis Balabanian, Esq. Ari J. Scharg, Esq. Benjamin H. Richman, Esq. Chandler R. Givens, Esq. EDELSON MCGUIRE, LLC 350 North LaSalle Street, Suite 1300 Chicago, IL 60654 Telephone: (312) 589-6370 Facsimile: (312) 589-6378 E-mail: jedelson@edelson.com rbalabanian@edelson.com ascharg@edelson.com brichman@edelson.com cgivens@edelson.com TABOO GENTLEMEN'S CLUB: Nude Dancer Files Suit Over Unpaid Wages ---------------------------------------------------------------- Dan McCue at Courthouse News Service reports that a nude dancer filed a federal class action against a nightclub, claiming it does not pay its dancers at all, but charges them to work, and adds escalating fees for private dances they perform. Tammy M. Blake sued Taboo Gentlemen's Club and its manager Casey McGee. She says she danced under the stage name "Brooke" from March 2010 until January 2011 at the club, which "engaged in the business of serving food and spirituous beverages and featuring all nude and semi-nude exotic dancers." Ms. Blake says she worked 7 1/2-hour shifts, 4 to 5 days a week, but the "defendants did not pay plaintiff any wages for work duties she performed," nor did they pay the other dancers. Instead, she says, the club made dancers pay it $10 for each night shift they worked and $5 for each day shift. The money came from the dancers' personal tips. In addition, dancers had to cough up $10 for each "private dance" they did, $40 for each 20-minute "champagne room" dance, and $65 for each half-hour "champagne room" dance. That money too came from their tips. The complaint does not elucidate the nature of the champagne room or its dances. Ms. Blake says the club did not pay minimum wage, and added injury to the insult by fining them $10 to $25 for being late to work, and $50 for missing work without notice. She seeks unpaid wages, costs, and statutory liquidated damages for labor violations. A copy of the Complaint in Blake v. Taboo Gentlemen's Club LLC, et al., Case No. 12-cv-00002 (N.D. W.Va.), is available at: http://www.courthousenews.com/2012/01/11/Dancers.pdf The Plaintiff is represented by: Garry G. Geffert, Esq. 114 S. Maple Ave. P.O. Box 2281 Martinsburg, WV 25402 Telephone: (304) 262-4436 E-mail: geffert@wvdsl.net - and - Gregg C. Greenberg, Esq. THE ZIPIN LAW FIRM, LLC 8403 Colesville, Road, #610 Silver Spring, MD 20910 Telephone: (301) 587-9373 E-mail: ggreenberg@zipinlaw.com ********* 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. Noemi Irene A. Adala, Joy A. Agravante, Ivy B. Magdadaro, Psyche A. Castillon, Julie Anne L. Toledo, Christopher Patalinghug, Frauline Abangan and Peter A. Chapman, Editors. Copyright 2012. All rights reserved. ISSN 1525-2272. 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