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The global tech meltdown in late July has spurred litigation against cyber company CrowdStrike and, now, transportation giant Delta Air Lines. Delta was sued by passengers who claimed that the carrier refused to offer full refunds after delaying or canceling their flights in the wake of last month’s massive computer outage, our colleague Jonathan Stempel reports.
Passengers accused Delta in federal court of breach of contract for failing to provide automatic refunds, and providing partial refunds only if they signed waivers against pursuing further legal claims. They also said in their lawsuit that Delta should compensate them for the cost and inconvenience of rebooking flights, hotels and food, and from being separated from their luggage. Delta declined to comment but has said passengers can request and receive refunds and seek compensation for incidental costs.
The outage stemmed from a software update from CrowdStrike, with disruptions to airlines, banks, hospitals and emergency lines. CrowdStrike shareholders last week hit the Austin-based company with a lawsuit accusing it of defrauding them. Separately, air passengers have sued CrowdStrike for alleged negligence. CrowdStrike’s Quinn Emanuel team fired back at Delta’s claim that it should be blamed for the tech crash.
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- Former U.S. Bankruptcy Judge David Jones will not have his government cell phone records probed in a battle over attorneys’ fees that he approved for his romantic partner’s former law firm, U.S. Bankruptcy Judge Eduardo Rodriguez ruled at a hearing. Jones resigned from the bench in October 2023 after admitting to a long-term, undisclosed relationship with a bankruptcy attorney at the law firm Jackson Walker, which regularly filed cases in Jones’ court.
- Elon Musk’s new suit against ChatGPT maker OpenAI was filed by Marc Toberoff, a lawyer best known for entertainment copyright battles. Musk in June withdrew an earlier version of the case filed by Irell and swapped out the legal team. Toberoff called his lawsuit a “great white” compared to the prior “gold fish.” Musk and Irell did not respond to requests for comment about why they dropped the first lawsuit.
- U.S. public schools have become a battleground for legal fights over the scope of the U.S. Constitution’s protections for religious freedom, our colleagues Liya Cui and Joseph Ax report. Court cases in Louisiana and Oklahoma test the reach of those protections, and lawmakers in 29 states have proposed at least 91 bills promoting religion in public schools this year.
- Paralegals in Texas who are licensed under a proposed new program will be able to provide some legal services to low-income individuals, under rules preliminarily approved by the state’s top court. Joining other U.S. states that have created similar programs, the Texas Supreme Court said in an order that allowing licensed legal paraprofessionals to deliver limited legal services in areas including family law, estate planning and probate law, and consumer debt law will help close the “justice gap” and address unmet civil legal needs.
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That’s the cap on the number of scholarships for baseball players enrolled in U.S. college sports, according to a new antitrust lawsuit that alleges the figure is artificially low. Plaintiffs firm Korein Tillery, representing a former top pitcher, sued the NCAA in federal court in Colorado, seeking damages and an injunction. The NCAA is preparing to pay $2.8 billion to resolve a series of class actions from current and former students seeking compensation tied to their athletic service. The new case seeks class action status for baseball players and other sports.
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Dog and cat owners who claim they were duped into overpaying for “prescription” dog and cat food told the U.S. Supreme Court that two pet food companies are barking up the wrong tree in a jurisdictional dispute the justices will hear in October. Royal Canin and Purina framed the case as a chance for the justices to clarify that plaintiffs whose state-court cases have been removed to federal court can’t sneak back to state court by amending their complaints to drop any references to federal laws. But in a surprising new brief, the pet owners’ lawyers at Keller Postman contend the Supreme Court should instead use the case to ditch the “incoherent” and “unworkable” 2005 precedent that allows defendants to remove cases asserting state-law claims that raise federal issues. Alison Frankel has the story.
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“No reasonable consumer would plausibly spin free-roaming hens on a grassy, open field from the term ‘farm fresh.’“
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—U.S. District Judge Charles Kocoras in his ruling dismissing a lawsuit claiming Kroger misled consumers by using the familiar “farm fresh” label to describe eggs that came from caged hens in industrial settings. The plaintiff said he paid a premium price for eggs with the label and would have paid less or not bought them had he known their origins. Siding with the grocer, Kocoras distinguished “farm fresh” from descriptors such as “cage-free,” “free-range” and “pasture-raised” that actually describe the living conditions of hens.
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- U.S. District Judge Karen Marston in Philadelphia will hold a status conference in product liability litigation involving Ozempic and similar drugs. The court is expected to hear updates from lawyers about the status of discovery among other pending issues. DLA Piper and Kirkland are leading defense teams, and the plaintiffs are represented by firms including Seeger Weiss and Motley Rice.
- In San Francisco, Chief U.S. District Judge Richard Seeborg will consider Oracle’s agreement to pay $115 million to settle a lawsuit accusing the database software and cloud computing company of invading people’s privacy by collecting their personal information and selling it to third parties. Oracle denied any wrongdoing.
- “Fortnite” maker Epic Games will face off against Apple at a discovery hearing before U.S. Magistrate Judge Thomas Hixson in San Francisco. Epic’s lawyers at Cravath are vying to hold Apple in contempt for allegedly violating a court order governing the iPhone maker’s AppStore. Apple, represented by Weil and Gibson Dunn, has denied wrongdoing.
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Court calendars are subject to last-minute docket changes.
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- The third trial over claims that discontinued heartburn drug Zantac ended in a mistrial when jurors could not agree about whether Boehringer Ingelheim was responsible for an Illinois man’s cancer. The mistrial means that the plaintiff can take his case to trial again. Boehringer has said Zantac does not cause cancer.
- Intel shareholders accused the tech giant in a proposed class action of fraudulently concealing problems that led to weak second-quarter results and prompted the chipmaker to suspend its dividend and to plan cutting its workforce by 15%. Plaintiffs firm Robbins Geller filed the lawsuit in San Francisco federal court.
- The 5th Circuit sharply questioned both sides in a fast food franchise operator’s challenge to the Labor Department’s longstanding practice of using workers’ salaries to determine whether they are eligible for overtime pay. A panel heard oral arguments in a bid by Robert Mayfield, who owns fast food restaurants around Austin, Texas, to revive a lawsuit claiming Congress never authorized the Labor Department to use salaries as a proxy for whether workers have management duties.
- The 1st Circuit rejected a challenge by the Satanic Temple to Boston’s custom of inviting religious leaders to deliver prayers or sermons at the start of city council meetings, a practice it challenged after it was refused an opportunity to participate. The court said the Satanic Temple failed to show that councilors violated the First Amendment by inviting speakers based on their religions, saying the record showed they based invites on speakers’ contributions to the local community.
- U.S. District Judge Brian Cogan declined to grant a new trial to Genaro Garcia Luna, a former top Mexican law enforcement official convicted last year on U.S. corruption charges, after he tried to bribe a fellow jail inmate to lie that the government’s case was tainted.
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- Dentons brought on former CFTC commissioner Mark Wetjen in D.C. He most recently was at Patomak Global Partners. (Dentons)
- Eversheds Sutherland added partner Todd Meyers in Atlanta as co-head of the firm’s U.S. restructuring and insolvency team. He was previously at Kilpatrick Townsend. (Eversheds)
- McGuireWoods added D.C.-based partners Kevin Madagan and Clint Narver, who focus on healthcare and life sciences counseling and enforcement. Madagan was previously at Reed Smith, and Narver joins from the DOJ’s consumer protection branch. (McGuireWoods)
- Cozen O’Connor hired construction litigation partner J. Michael Schiff in San Diego from Andrews Myers. (Cozen)
- Burr & Forman brought on Atlanta-based partners Al Hill and Nida Rizvi from Taylor English, and Robert Thomas from Andersen, Tate & Carr. (Burr & Forman)
- Thompson Hine hired business litigation partner Ernest Badway in New York from Fox Rothschild, where he was once a co-chair of the firm’s securities and other practices. (Thompson Hine)
- Thompson Coburn picked up employee benefits and ERISA partner Michael Graham. He joins the firm in Chicago from Willkie. (Thompson Coburn)
- Saul Ewing hired insurance partner William Latza in New York. He previously was general counsel for insurance at Lemonade. (Saul Ewing)
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Companies are increasingly turning to voluntary carbon markets to buy and sell carbon credits to achieve their decarbonization goals as part of their overall environmental, social, and governance strategies. A recent policy statement from the White House seeks to provide guidance on responsible VCM participation. Levi McAllister of Morgan Lewis reviews the White House’s statement and offers key takeaways.
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