Reebok will have to pay $25 million to settle charges brought against them by the Federal Trade Commission that it used deceptive advertising by making claims about fitness shoes without backing up those claims with scientific evidence. The company will also be facing a class-action lawsuit against the company in which consumers who purchased the "toning shoes" will seek to have their money refunded.
Communications giant AT&T is engaged in talks to purchase rival provider T-Mobile to the outrage of some of its customers who have joined in a class action lawsuit to stop the merger. In an attempt to end arbitration claims made by the group of eight customers, AT&T has filed lawsuits seeking injunctions against the customers alleging abusive actions.
Attorneys who represent businesses have been watching to see how the recent U.S. Supreme Court ruling in the giant Wal-Mart sex discrimination case might affect pending class-action employment litigation. In the weeks following the case, the class-action status of several plaintiff groups who have filed lawsuits against their employers has been upheld. These decisions have prompted some businesses to complain that judges have been interpreting the Supreme Court's recent ruling too narrowly.
On Monday, the U.S. Supreme Court ruled that the sex discrimination lawsuit brought by several women on behalf of 1.5 million current and former female employees of Wal-Mart could not proceed as a class action. The decision to dismiss the class-action lawsuit was unanimous. If it would have been allowed to proceed, the lawsuit would have been the largest class action to ever proceed against a private employer. Had the lawsuit gone forward and succeeded, it could have cost Wal-Mart billions of dollars in damages.
On Tuesday, the U.S. Supreme Court will hear an appeal by Wal-Mart Stores Inc. that will ask the court to stop an employee discrimination lawsuit from proceeding against the company on a class-action track. Several former and current female employees brought a sex discrimination lawsuit against Wal-Mart in 2001, and they are seeking to pursue the lawsuit on behalf of all former and current female employees of Wal-Mart, which could mean up to 1.6 million plaintiffs.
A class action lawsuit was filed against Verizon Wireless that claims the company improperly bills consumers for "unidentified, unwarranted and recurring" charges for its "Get It Now" download service. The lawsuit alleges that the mobile phone company is violating the Federal Communications Commission (FCC) Truth-in-Billing Act.