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U.S. Lawmakers Probing Wells Fargo Scandal Blast Arbitration Pacts

Wells Fargo & Co customers aiming to sue the bank over bogus accounts opened in their names may be in for an unpleasant surprise: the fine print requires them to take their claims to an arbitrator instead of a court. Continue Reading Below Mandatory arbitration rules inserted into account-opening agreements prohibit customers from joining class actions or suing the third-largest U.S. bank in …


What Makes Chipotle ‘Wage Theft’ Lawsuit Possible

The Fair Labor Standards Act of 1938, or FLSA, protects workers by (1) requiring a minimum wage, (2) mandating overtime pay for work exceeding 40 hours in a workweek, (3) prohibiting child labor, and (4) requiring employers to keep accurate time records. There’s a problem, though. Consider an individual worker with a solid wage claim.


Op-Ed: Class Wage-And-Hour Litigation Is an Ongoing Threat

Employers face countless labor and employment challenges every day. Wage-and-hour compliance issues are near the top of that list because employers have experienced an increase in the number of class- and collective-action lawsuits filed against them, and that trend is likely to continue. Understanding the dynamics of class and collective actions and what …


When Banks Play Unfairly, Consumers Want Chance to Be Heard in Court

The vast majority of consumers want to know they can seek their day in court if they get in a beef with a bank. That’s the main takeaway of a report last week from the Pew Charitable Trusts, which examined so-called mandatory arbitration clauses in bank contracts. These are the provisions that say you can’t sue or join a class-action lawsuit, and if you want to settle a dispute, you have to …


CFPB Arbitration Rule Will Enrich Trial Lawyers, Not Protect Consumers

Today, the Consumer Financial Protection Bureau closes the comment period on its proposed rule to enrich trial lawyers at the expense of consumers. The Bureau misleadingly styles its proposal as one to regulate arbitration agreements. The truth is that the proposal is very intentionally designed for the singular goal of promoting class action lawsuits—the number one policy priority of the trial …



Volkswagen Goes Silent on Fraud in Canada. Owners Left With Lemons.

Waqes Mubarik found out he was one of the unlucky ones in 2015 when the Volkswagen scandal broke out. His 2015 Passant diesel was equipped with one of the so-called defeat devices designed to cheat on emissions tests. “I’ve been a loyal customer to Volkswagen for years,” the physician’s assistant said on the phone from Barrie, Ontario.


Long Beach Cops Accused of Targeting Gay Men in Class-Action Suit

In April, 50-year-old Rory Moroney was arrested at Long Beach’s Recreation Park. One officer involved—an undercover cop who posed as an amorous stranger— claimed that Moroney was masturbating and exposing himself in public. Moroney, on the other hand, said that he was simply …



Strange Praises SCOTUS Decision Limiting Lawsuits

Attorney General Luther Strange recently hailed a U.S. Supreme Court decision clarifying that persons filing lawsuits must be able to prove actual harm. The ruling serves to place limits on costly class action lawsuits based on technical violations of the law in which persons have suffered no actual damage. On May 16, the Supreme Court ruled 6-2 in favor of the on-line company …