Chen v. Knabb, et al.. (Cal. Super. Ct., Alameda Cty.) Counsel for Plaintiff in shareholder-derivative action based on board of directors’ approval of sale of $10 million of stock in Pegasus Wireless Corporation to Pegasus’s CEO and subsequent repurchase of $6.96 million of stock for the original sale price after stock price plummeted from $8 to less than $1 a share. Case was among several shareholder-derivative suits and shareholder class actions based on alleged director misconduct, but the only one to survive two bankruptcy petitions and multiple dispositive motions that led to dismissal of other actions.  Although key Defendants (former Pegasus CEO and CFO) failed to appear and were subsequently found liable for stock fraud in SEC action and jailed for criminally violating federal securities laws, Fazio | Micheletti LLP successfully negotiated settlement of all claims. (Defendants represented by Fenwick & West LLP.)

Wilson v. Airborne Health, Inc. (C.D. Cal.) Co-lead counsel in nationwide class action involving false-advertising and consumer-deception claims against seller of Airborne Effervescent Health Formula.  Defendants marketed the product as a “Miracle Cold Buster” that could prevent colds if taken just before boarding a crowded plane or any other environment that expose people to “germs,” and claimed that the second-grade school teacher who “invented” Airborne actually cured the common cold — something that still eludes the scientific community. The case was resolved by a settlement agreement that created a fund of more than $23 million — a record amount for a false-advertising case — which was used to reimburse consumers who purchased Airborne without the need for proof of purchase; remainder of funds donated to non-profit organizations that benefit consumers. (Defendants represented by Weil Gotshal & Manges LLP and Nevers Palazzo Maddux & Packard LLP.) Documents Available: Settlement Agreement

Howard v. Ford Motor Co. (Cal. Super. Ct., Alameda County) Lead counsel for plaintiffs in 30-million-member class action based on defendant’s violations of Consumers Legal Remedies Act and Unfair Competition Law by concealing safety-related defect from government regulators and millions of consumers. Case was one of six related actions pending throughout the United States, which involved appearances before several federal courts, including the Judicial Panel on Multidistrict Litigation and the Ninth Circuit Court of Appeals, as well as the California Court of Appeal (three times) and the California Supreme Court (twice). Equity phase of trial resulted in the first judicially-mandated automotive recall in a private lawsuit in U.S. history, and an order requiring Ford to provide restitution to all California class members. Case was resolved on favorable terms in nationwide settlement, including full reimbursement of all repair and replacement costs without the need for receipts or other proof of purchase, a warranty extension (from five years or 50,000 miles to 10 years or 100,000 miles), and the establishment of a $5 million fund for use in conducting safety research by George Washington University’s National Crash Analysis Center. (Defendant represented by O’Melveny & Myers LLP, Snell & Wilmer LLP, and Wheeler Trigg & Kennedy LLP.)  Documents Available: Order Granting Class Certification;  Statement of Decision; Settlement Agreement

Bauer v. Toyota Motor Sales, Inc. (Cal. Super. Ct, Los Angeles County)  Lead counsel for plaintiffs in action alleging defendant violated California consumer-protection statutes by concealing defects in windshields installed in Scion xB sport utility vehicles.  The case was resolved by settlement, which provided full reimbursement of windshield replacement/repair costs to each owner of class vehicles. (Defendant represented by Quinn Emanuel Urquhart & Sullivan LLP.) 

In re Tobacco Cases II (Cal. Supreme Court) Represented Public Citizen, Inc., and the Center for Auto Safety as amicus curiae in support of plaintiffs/appellants in appeal challenging order dismissing claims under California’s Unfair Competition Law on grounds that Proposition 64 imposed strict new standing and reliance requirements, and mandated that named plaintiff’s claims must be identical to those of proposed class members. Plaintiffs prevailed. (Defendants represented by Munger Tolles & Olson LLP, Dechert LLP, Loeb & Loeb LLP, Reed Smith LLP, and DLAPiper LLP.)  Documents Available: Amicus Brief; Opinion and Order

Mazza v. Am. Honda Motor Co. (9th Cir.) Represented Public Citizen, Inc., as amicus curiae in case in appeal of District Court’s order certifying nationwide class and applying California law to claims by all class members.  Case is pending.  (Defendant represented by Lewis, Brisbois Bisgaard & Smith LLP.) Documents Available:  Amicus brief filed with Ninth Circuit. 

Daniel v. American Honda Motor Co. (Cal. Super. Ct, Los Angeles County) Lead counsel for plaintiffs in nationwide class action based on violations of Consumers Legal Remedies Act and Unfair Competition Law in connection with sale of vehicles with defective windshields (which crack spontaneously or with slight impact), costing up to $500 to repair. Case was resolved on favorable terms in nationwide settlement: All class members entitled to full reimbursement for windshield repairs and to a warranty extension that virtually doubled class members’ coverage. (Defendant represented by Lewis Brisbois Bisgaard & Smith LLP.)  Documents Available: Settlement Agreement

Trew v. Volvo Cars of North America, LLC (E.D. Cal..) Lead counsel for plaintiffs in nationwide class action based on fraudulent concealment of safety defect in Electronic Throttle Module (“ETM”) in nearly half a million Volvo cars and light trucks, in violation of California’s False Advertising Law, Unfair Competition Law, and Consumers Legal Remedies Act. Case was resolved on favorable terms for plaintiffs: Volvo agreed to reimburse all current and former owners of affected vehicles with 100 percent of all costs they incurred in connection with repair or replacement of ETMs (which costs up to $1,200 each), for up to $50 in towing or car-rental charges, and an extension of the ETM warranty from four years or 50,000 miles to 10 years or 200,000 miles. (Defendant represented by O’Melveny & Myers LLP.)  Documents Available: Opinion and Order Denying Motions: Settlement Agreement

Graham v. DaimlerChrysler Corp. (Cal. Supreme Court) Represented Friends of the Earth as amicus curiae in support of the plaintiff involving challenge to the application of catalyst theory of recovery in cases that benefit the public at large. Plaintiff prevailed. (Defendant represented by Gibson Dunn & Crutcher LLP and Bryan Cave LLP.)  Documents Available: Amicus Brief; Opinion and Order 

Davis v. American Honda Motor Co. (Cal. Super. Ct, Placer County) Represented Center for Auto Safety and two law firms as co-counsel with Trial Lawyers for Public Justice in challenge of order sealing record containing sanctions decision. Sanctions were imposed against defense expert in product liability case; expert was found to have destroyed evidence, which led to striking of defendant’s answer. Sanctions decision was sealed as part of global settlement with plaintiff, but sanctioned expert then used sealing order as a basis for refusing to answer questions about destruction of evidence and as a threat against lawyers asking questions about sealed sanctions order. Motion granted, record unsealed, and order issued clarifying that sanctions order cannot be used offensively. (Defendant represented by Loeb & Loeb LLP.) Downloadable Documents Available: Brief in Support of Motion to Unseal Sanctions Order; Opinion and Order Granting Motion

Wornow v. Register.com, Inc. (New York Supreme Ct., New York County) Lead counsel for plaintiffs in worldwide class action based on defendant’s unlawful and deceptive billing practices. Case was resolved by settlement, which provided for a $2 million claims fund for reimbursement of class members, and established cy pres fund that resulted in distribution of approximately $700,000 to Computers for Youth, a New York-based non-profit organization that provides computers and technology education to under-privileged children in the New York area. (Defendant represented by Skadden Arps Meagher Slate & Flom LLP.)  Documents Available: Final Order Approving Settlement

Carden v. General Motors Corp.(Cal. Super. Ct, Santa Clara County) Lead counsel for plaintiffs in statewide (240,000-member) private-attorney-general action based on defendant’s violations of California’s Unfair Competition Law and Consumers Legal Remedies Act. Case was resolved on favorable terms for plaintiffs. (Defendant represented by Bingham McCutchen LLP and Sedgwick Detert Moran & Arnold LLP.)

Mattison v. eBay, Inc.. (Cal. Super. Ct, Santa Clara County) Lead counsel for plaintiffs in nationwide class action based on alleged billing fraud and termination of membership without providing proper notice and opportunity to defend against charges that led to termination. Case settled on behalf of individual representatives only, and resolution included changes in certain disclosure statements, satisfaction of named plaintiffs’ claims, and establishment of charitable fund on behalf of individual named plaintiffs only. Plaintiffs’ counsel donated approximately $250,000 in fees and litigation expenses to non-profit consumer-advocacy organizations. (Defendant represented by Cooley Godward LLP.)

Hernandez v. [Anonymous] Bank (Milwaukee Cir. Ct.) Lead counsel for plaintiffs in action alleging financial institution engaged in fraud and breached mortgage agreements by terminating interest payments on tax and insurance impound accounts. Case was resolved by settlement that reinstated interest payments and provided 100 cents on the dollar for all missed interest payments to all affected mortgagees. (Defendant represented by Reinhart Boerner & Van Dueren S.C.)

CNX Media, Inc. v. Travelocity, Inc. (Cal. Super. Ct, San Francisco County) Co-counsel for plaintiff media company in case against former corporate parent involving claims of unfair competition, breach of contract, and breach of fiduciary duty. Case was resolved on favorable terms by settlement. (Defendant represented by Gibson Dunn & Crutcher LLP.)

Legal Staffing Partners, Inc. v. LookSmart Ltd. (Cal. Super. Ct, San Francisco County) Lead counsel for plaintiffs in nationwide (90,000-member) class action based on defendant’s breach of contract, fraud, and violations of Unfair Competition Law in connection with internet advertising. Firm withdrew from case before settlement became final. (Defendant represented by Gibson Dunn & Crutcher LLP.)

McDermott v. Mark Nutritionals, Inc. (Cal. Super. Ct, San Francisco County) Lead counsel in statewide class action based on defendant’s violations of Consumers Legal Remedies Act and Unfair Competition Law in connection with marketing and sales of “overnight” weight-loss product. Case stayed after Food and Drug Administration intervened as a plaintiff and defendant filed petition for bankruptcy. (Defendant represented by Morrison & Foerster LLP.)

In re Synthroid Marketing Litigation (N.D. Ill.) Co-counsel in antitrust/unfair competition action filed in California and later consolidated in Multidistrict Litigation venued in Northern District of Illinois. Case was resolved on favorable terms by settlement. (Defendants represented by Pillsbury Wintrhop LLP and Mayer Brown & Platt LLP.)