Class Actions
Overview
Dozens of lawyers in Locke Lord Bissell & Liddell's Litigation Department are members of the Firm’s Class Actions Practice Group. These seasoned trial lawyers have extensive backgrounds in class action litigation in jurisdictions nationwide. From high profile national cases for Fortune 500 clients to more limited state-wide class litigation, we regularly resolve class action disputes brought against our clients by their customers, competitors, suppliers, investors, shareholders and regulators. We are experienced at all stages of class action litigation, including pursuit of dismissal, denial of certification, summary judgment, decertification, interlocutory appellate work and trial.
We often serve as national counsel for clients facing “bet the company” litigation and coordinate the defense of competing or parallel class cases across the country, as well as multi-district litigation involving both class and individual claims. Our lawyers have the skills and experience to defend any and all types of high stakes class action disputes. The knowledge and experience gained from handling hundreds of class action cases is key to ensuring success in “bet the company” litigation.
Our approach is to work together with our clients to determine the client’s overall goals for resolution of the case and to carefully plan a strategy that will accomplish those goals. We are sensitive to concerns about business reputation and the protection of our clients’ brands.
Our class action practice reaches across the major substantive areas of the law, including:
- Antitrust
- Securities
- Business tort
- Mass tort
- Consumer finance
- Consumer fraud
- Contract
- Franchise laws
- Insurance
- Product liability
- Racketeer Influenced and Corrupt Organizations Act (RICO)
- Debt collection
We represent clients in a host of diverse industries, including:
- Casualty and auto insurance
- Energy and oil field services
- Banking and financial services
- Health care
- High technology
- Investment banking
- Life insurance
- Manufacturing
- Mortgage, credit card and other consumer finance companies
- Pharmaceutical companies
- Real estate investment trusts (REITs)
- Retail
- Video and media
We regularly handle class action litigation in jurisdictions across the United States. Because we have litigated so many purported class action cases, in so many jurisdictions across the country, we understand the determinative legal and factual issues, and we have refined defense strategies to present those issues in the best possible light. Through creative preliminary motion practice, focused discovery and compelling written and oral advocacy, we have achieved many outright victories or dime-store settlements in alleged class cases with enormous stakes.
Our class action practice group is cohesive, cooperative and committed. We enjoy practicing law together, and we bring our collective enthusiasm and talents to bear on solving our clients’ problems. Recognizing that law is a personal service business, we make every effort to understand a class action lawsuit in the broader context of a client’s current and future business plans. We insist on open and frequent communication with our clients so we can recommend the best possible choices on litigation strategies and tactics from the client’s point of view. We vigilantly monitor the costs of litigation and the cost/benefit ratio of discovery and trial versus mediation, arbitration or settlement.
We are a leader in integrating modern technology and litigation management techniques into our class action practice. While we do not advocate a “one-size-fits-all” approach, in appropriate cases we can, for example, integrate our word processing and billing systems with those of our clients, or employ computerized document and data retrieval systems in discovery. We have an organized “e-discovery” group that is highly trained in complex electronic discovery and is pre-trained on latest software utilized by the major e-discovery vendors. We also have a state-of-the-art graphics facility in-house that produces high quality exhibits and other presentation materials, saving clients time and money.
Antitrust
- Currently represent a major oil company in class action litigation in New York, New Jersey, and Texas involving claims that all of the major oil companies have violated the antitrust laws by exchanging information regarding salaries and benefits paid to the managerial, professional, and technical employees of those companies.
- Successfully represented an automobile dealer’s association and more than 700 automobile dealerships in putative class actions in both federal and state court involving antitrust and fraud allegations relating to the collection of vehicle inventory taxes. The United States Court of Appeals for the Fifth Circuit reversed certification of the class. Robinson v. Texas Automobile Dealers Ass’n, 387 F.3d 416 (5th Cir. 2004) cert. denied, 544 U.S. 949 (S.Ct. 2005).
- Currently represent a major pharmaceutical company in drug pricing litigation brought by states and private plaintiffs in Texas, West Virginia and Arizona.
- Obtained dismissal of numerous price fixing cases involving retrospectively rated insurance policies, as well as defeat of certification.
- Successfully defended, at trial, a paper manufacturer against claims of industry-wide price-fixing brought by consortium of state attorneys general.
- Obtained dismissal of an antitrust class action lawsuit alleging a conspiracy to boycott.
Securities
- Represented the outside directors of an aerospace company in a nationwide class action. The class members alleged securities violations under Rule 10(b)(5). This case resulted in a significant opinion from the United States Court for the Northern District of Texas that is regularly cited in securities litigation. In re LTV Secs. Litig., 89 F.R.D. 595 (N.D. Tex. 1981).
- Obtained judgment for an individual director in a securities fraud class action case alleging misstatements in press releases and periodic reports, along with insider selling.
- Obtained dismissal of a software company in a nationwide class action filed on behalf of a group of investors who alleged securities violations under Rule 10(b)(5).
- Obtained dismissal of credit rating company in securities fraud case brought by noteholders in In re Re Towers Financial Corporation litigation.
- Represented a securities brokerage firm in a nationwide class action brought by investors in several limited partnerships alleging securities fraud and seeking over $500 million in damages. The case was settled favorably.
- Successfully defended credit rating company in securities fraud case arising from failure of a major Canadian life insurance company.
- Represented a securities brokerage firm in a nationwide class action involving securities fraud allegations. The class sought damages of $75 million. The case was settled favorably.
- Obtained dismissal of a national accounting firm in a nationwide class action alleged securities violations under Rule 10(b)(5).
- Defeated shareholder class action claims filed against a telephone company arising out of a “merger squeezeout.”
- Represented the former CEO of a manufacturer of wireless and mobile transaction-based wireless automation systems, in a nationwide class action brought by the company's shareholders. The class alleged securities violations under Rule 10(b)(5). As a discovery sanction, the court granted entered a default judgment on liability in favor of our client. In re Telxon Corp. Secs. Litig. 2004 WL 3192729 (N.D. Ohio July 16, 2004).
- Defeated class certification in a securities fraud case that arose out of a Ponzi scheme.
- Obtained dismissals of companies, directors and financial advisors in securities class action suits alleging misrepresentations in prospectuses and periodic reports.
- Represented a group of outside directors of a lending institution in a nationwide class action brought by the company's shareholders. The class alleged securities violations under Rule 10(b)(5). The case was settled favorably.
- Successfully defended companies and their management in proxy contest litigation.
- Successfully defended management personnel in derivative suits asserting breaches of fiduciary duty in corporate transactions.
- Defeated class certification and obtained summary judgment for the former CFO of a multi-national industrial manufacturing corporation in a case alleging violations of both the 1933 and 1934 Acts.
Business Tort
- Represented an oil exploration company in a nationwide class action involving common law claims for fraud relating to energy investments. The class sought $500 million in damages; the case was settled favorably.
Mass Tort
- Represent insurance carriers in mass tort litigation involving breast implants, tobacco, thimerosal, PPA, Baycol and other products.
- Regularly represent insurance carriers and airlines in mass tort litigation arising out of airline crashes in the United States, Phillipines and other countries.
- Represent insurance carriers in asbestos, environmental and health hazard claims.
- Successfully defeated class certification in several asbestos cases.
- Represented an international supplier of specialty minerals, to oversee and coordinate silicosis claims made by hundreds of claimants.
Consumer Finance
- Obtained summary judgment for national mortgage lender in a nationwide class action alleging violations of RESPA (for cite see WR Starkey case on Yoxall resume on website)
- Obtained summary judgment against national mortgage company in class action alleged deceptive trade practices clams (for cite see Hawthorne v. Countrywide on Mowrey resume on website)
- Obtained summary judgment for three national mortgage companies in putative class actions alleging discriminatory lending practices.
- Successfully resolved a putative class action in the United States Bankruptcy Court for the District of Maryland alleging that one of the nation’s largest mortgage lenders violated the automatic stay along with several other federal statutes, including the Fair Debt Collection Practices Act, by failing to properly allocate pre-petition and post-petition payments and, as a result, serving invalid notices of default and seeking to lift the automatic stay to enforce invalid payment obligations. Plaintiffs’ claims against the Company were settled on favorable terms.
- Successfully defended a national mortgage company in putative class actions in Texas, Mississippi, and Louisiana involving customers affected by hurricanes Katrina and Rita.
- Obtained dismissals and/or defeated class certification motions for banking, consumer finance and retail clients in dozens of class actions alleging violations of the Truth in Lending Act and state consumer fraud laws. See, e.g., Personius v. HomeAmerican Credit, Inc. d/b/a “Upland Mortgage”, 234 F. Supp. 2d 817 (N.D. Ill. 2002).
- Represented a nationwide mortgage lending firm, in a putative RESPA class action relating to primary and pool mortgage insurance. The district court granted a motion to dismiss based on lack of standing and injury and the United States Court of Appeals for the Fifth Circuit affirmed. Moore v. Radian Group, Inc. , 233 F. Supp. 2d 819 (E.D. Tex. 2002), aff'd, 69 Fed. Appx. 659, No. 02-41462 (5th Cir. May 30, 2003).
- Obtained summary judgment in several putative class action cases alleging mortgage lenders engaged in unauthorized practice of law by charging document preparation fees in connection with mortgage loans, including the first reported decision in such a case in Illinois, Michalowski v. Flagstar Bank, FSB, No. 01 C 6095, 2002 WL 113905 (N.D. Ill. Jan. 25, 2002).
- Represented another mortgage company in two putative class actions asserted under Real Estate Settlement Procedures Act and Texas law relating to mortgage document preparation fees. The United States Court of Appeals for the Fifth Circuit reversed both District Courts’ certification of nationwide class actions. O’Sullivan v. Countrywide Home Loans, Inc., 319 F.3d 732 (5th Cir. 2003)
- Obtained summary judgment in Fair Credit Reporting Act case involving allegations related to prescreened offers of credit. Murray v. GMAC Mortgage Corp., No. 05 C 1229, 2007 WL 2317194 (N.D. Ill. July 23, 2007).
- Settled nationwide class action in Fair Credit Reporting Act case involving allegations related to prescreened offers of credit.
- Represented Peltier Enterprises, Inc., an automobile dealer, in a putative class action relating to automobile dealer financing. The trial court required the parties to conduct a trial on the claims of the two named parties. The jury returned a total defense verdict for the defendants. After the trial court certified a class action, the court of appeals reversed the certification. Peltier Enterprises, Inc. v. Jonray A. Hilton, 51 S.W.3d 616 (Tex. App. – Tyler 2000, pet. denied).
- Represented automobile dealers in a similar putative class action relating to automobile dealer financing. The trial court stayed the cases based on the Peltier decision. The trial court thereafter dismissed the lawsuit. The defendants settled the cases thereafter with the individual plaintiffs on a favorable basis.
- Obtained summary judgment for national mortgage lender in case alleging that lender charged a full day’s interest on the day mortgage loans were paid off, and recovered our client’s attorneys’ fees pursuant to Illinois Supreme Court Rule 137.
- Obtained dismissals for a title insurance company in several federal and state class actions asserting violations of the Real Estate Settlement Procedures Act, Consumer Fraud Act, common-law fraud, breach of contract and unjust enrichment, one of which resulted in the opinion in Echevarria v. Chicago Title & Trust Co., 256 F.3d 623 (7th Cir. 2001).
- Currently represent mortgage companies in nationwide putative class actions alleging RESPA and Texas state law violations relating to alleged “mark-ups” and mortgage “up-charges.”
- Successfully defended several national marketing companies against class actions alleging violations of the federal Telephone Consumer Fraud Act.
- Obtained dismissal of mortgage lender in case alleging that sellers and appraisers fraudulently represented the value of properties plaintiff invested in, mortgage brokers committed fraud by tendering the fraudulent appraisals to mortgage lenders, mortgage lenders were vicariously liable for the actions of the mortgage brokers and for failing to confirm the opinions of value offered by the appraisers, and mortgage servicers were vicariously liable for the alleged misconduct of the mortgage lenders.
- Currently represent a national mortgage company in a putative class action on behalf of Chapter 7 and Chapter 13 bankruptcy debtors alleging the overcharge of fees and expenses in connection with the resolution of automatic stay proceedings.
- Won summary judgment for a furniture retailer in a class action alleging violations of the truth-in-lending and consumer fraud acts relating to the disclosure of credit application fees in consumer credit sales.
- Obtained favorable settlement of case involving nationwide allegations that large golf equipment retailer’s credit card processing system had violated FACTA (Fair and Accurate Credit Transactions Act).
- Won summary judgment for a nationwide mortgage lending firm in a state court class action alleging nationwide classes relating to mortgage servicing practices.
- Won dismissals for consumer finance companies in state and federal class actions alleging consumer fraud and TILA violations arising out of the sale of credit insurance policies.
- Represented a credit card company in a putative class regarding late fees. The case settled on a favorable basis for our client.
- Obtained dismissal of a case alleging that insurance coverage was unlawfully force placed upon plaintiffs’ property.
Consumer Fraud
- Obtained the denial of class certification in a putative nationwide class action brought in St. Clair County, Illinois relating to consumer rebates.
- Won dismissals for a national furniture retailer in three related class action lawsuits alleging that it violated consumers’ constitutional rights to due process and committed wrongful replevin without notice.
- Represented telephone service provider in a mandamus proceeding stemming from a purported statewide class action seeking refunds of residential telephone bill charges. In a unanimous opinion, the Texas Supreme Court declared that the trial court lacked jurisdiction over the claims and that the Texas Public Utility Commission had exclusive original jurisdiction over individual customers’ telephone bill charges. The alleged damages were estimated in the hundreds of millions of dollars and likely exceeded one billion dollars industry-wide in Texas. In re Southwestern Bell Tel. Co., L.P., S.W.3d , 2007 WL 2457771, 50 TEX. SUP. CT. J. 1178 (Aug. 31, 2007).
- Enforced arbitration clause in consumer credit agreement in connection with consumer’s claim against major retailer that it improperly collected sales tax for garment alterations, resulting in abandonment of case.
- Obtained dismissal for a truck engine manufacturer in a class action brought on behalf of purchasers of extended engine warranties, alleging breach of warranty, fraud and deceptive trade practices.
- Served as national counsel for a major retailer in a number of class actions filed throughout the country, and consolidated by the Panel for Multidistrict Litigation in Alabama federal court, alleging federal and state-law claims regarding installment sales contracts, and negotiated a global settlement after winning dismissals of several of the cases.
- Won dismissal of claims against an insurance carrier in a class action alleging violation of the Consumer Fraud Act related to selling life insurance to Spanish speaking consumers without an English-to-Spanish translation of terms.
- Obtained summary judgment for an international consumer products company in a number of copycat nationwide class action lawsuits alleging violations of the Illinois Consumer Fraud Act in connection with the labeling of liquid soap products.
- Won dismissal for an international consumer products company in a nationwide class action lawsuit alleging violations of the Illinois Consumer Fraud Act in connection with the labeling and marketing of its toothbrushes.
- Negotiated a favorable settlement for a restaurant chain in a class action alleging misrepresentations as to the quantity of beer in glasses distributed throughout its restaurants.
Contract
- Represented a software company in a nationwide class action in which plaintiffs alleged breach of warranty, breach of contract, and DTPA claims in connection with the sale of certain DOS and Windows versions of dental office management software.
- Defeated a plainitff’s effort to certify a nationwide class in a case brought against a major office supply retailer relating to alleged failure to honor rebates. Plaintiff then dismissed the case.
- • Represented DHL in nationwide arbitration class action involving claims of independent contractors concerning alleged underpayments spanning thirteen years. Case was favorably settled with significant involvement in fledgling arbitration class action settlement procedures.
Franchise Laws
- Currently represent a major oil company in oil and gas class actions throughout the country relating to alleged failure to pay proper royalties.
- Currently represent a gas company in class actions seeking additional royalties from the sale of natural gas by alleged royalty owner class members.
- Represented a gas public utility company in a statewide class action filed against it in Hidalgo County, Texas. The class consists of a group of municipalities in the state who have franchise agreements with the public utility. The class members allege that franchise fees have been underpaid as a result of the transportation of third party gas to industrial users by way of the utility's distribution system.
Insurance
- Obtained dismissal of class action case pending in Madison County, Illinois against major insurance company challenging pricing practices.
- Defended several life insurance companies in sales practices class actions brought in state and federal courts on behalf of all United States policyholders, and separate class actions on behalf of Mexican, Central, and South American policyholders.
- Obtained dismissal of class action pending in Madison County, Illinois challenging defendants’ practices concerning payment of medical claims.
- Obtained dismissal of class action pending in St. Clair County, Illinois attacking defendants practices with respect to PPO payments.
- Obtained summary judgment for a nationwide mortgage company in a putative class action asserting alleged violations of the Texas Insurance Code.
- Obtained dismissal of major insurance company in a class action lawsuit filed in Tennessee state court challenging the pricing of insurance.
- Represented a life insurance company in a nationwide class action involving claims for fraud relating to "vanishing premium policies." The class consisted of all purchasers of the insurance policies claimed to be defective.
- We are defending a national reinsurance company in eight separate putative class actions initiated by groups of doctors, hospitals and lawyers that purchased insurance through an allegedly insolvent Virginia-based malpractice insurer or certain of its Tennessee-based risk retention groups. The plaintiffs have alleged claims of RICO, conspiracy, fraud, suppression, negligence, unjust enrichment and conversion arising out of agreements our client entered into while the primary reinsurer to the insolvent insurer. We have prevailed on motions to dismiss one class of plaintiffs for lack of standing to pursue claims, while significantly limiting the damages available to the remaining class plaintiffs based on standing. We have also prevailed on motions to dismiss the putative class claims for failure to state a claim.
- Defended putative class action claims in Madison County, Illinois attacking a substantive review by insurance companies of invoices and services of health care providers.
- Achieved summary judgment for an automobile insurance carrier in state and federal class actions alleging unfair claim practices and consumer fraud in the use of non-OEM parts to repair automobiles.
- Represented an insurer putative class action relating to alleged discrimination in automobile insurance rates.
- Represented insurance companies in class actions with respect to automobile insurance coverage and claims handling.
- Represented an insurance company in a putative statewide class action for claims related to insurance practices in the automobile lending industry.
- Successfully defended individual directors and officers of a mutual insurer in a class action and derivative claims for their alleged “demutualization” of the mutual and conversion of its surplus.
- Served as national counsel for an insurance company in class actions related to force placed single interest insurance policies, obtaining one dismissal and negotiating individual settlements in several other cases.
- Defeated motion for class certification for travel insurance carrier in case arising out of September 11 related travel restrictions.
- Negotiated nuisance settlement for an insurance carrier in a class action involving the rating of teenage drivers.
Product Liability
- Represented Henry Schein, a dental software company, in a putative nationwide class relating to software. In a now oft-cited opinion, the Texas Supreme Court reversed the lower courts’ certification and affirmance of the class action. Henry Schein, Inc. v. Stromboe, 102 S.W.3d 675 (Tex. 2002).
- Currently represent a major wireless telephone company in class action litigation in Dallas County, Texas involving claims that certain models of Nokia telephone handsets do not properly work on the PCS network.
- Currently represent a major pharmaceutical company in class action litigation in Texas and Illinois involving claims of addiction and other damages from the use of OTC products.
- Achieved dismissals or summary judgment in nationwide class actions alleging fraud, mislabeling and failure to warn for one of the nation’s largest consumer products manufacturers.
- Represented a software manufacturer in a nationwide class action involving purchasers of allegedly defective software. Although the class was certified by the trial court, the trial court subsequently decertified the class after the Texas Supreme Court agreed to review the class certification by way of writ of mandamus. Thereafter, plaintiffs non-suited the case.
- Obtained dismissal of several putative national class actions against a manufacturer of personal watercraft, alleging product handling defects and seeking recovery under breach of warranty and consumer fraud theories.
- Negotiated a favorable nationwide class settlement on behalf of a leading manufacturer of pickup truck bedliners in a series of class actions brought against the bedliner industry in a series of class actions brought against the bedliner industry in state and federal courts across the United States, resolving the suits in exchange for funding a modest education campaign and through standardized warning labels.
- Defeated class certification in several cases against an international pharmaceutical company in state and federal actions involving DES, and managed to decertify the only plaintiffs’ class that was ever certified in DES litigation.
- Successfully defended major pharmaceutical company in numerous cases relating to exposure to silicone gel filled breast implants. Locke Lord Bissell & Liddell LLP attorneys were also instrumental in obtaining the first directed verdict in the country for a breast implant manufacturer, achieved after the plaintiff's causation experts were excluded on Daubert grounds.
- Represented defendants in numerous actions brought against manufacturers and international growers by approximately 18,000 foreign agricultural workers. The plaintiffs alleged they were exposed to a pesticide containing the chemical dibromochloropropane, commonly known as DBCP, during the course of their employment as banana workers in Central and South America, the Caribbean, West Africa, Southeast Asia, and the Philippines. The plaintiffs, who contended that their exposure to DBCP caused severe personal injuries, including sterility, brought suits in numerous counties across Texas and in a number of other states.
- Frequently defend major auto manufacturer in nationwide class action litigation involving claims of safety defects (including airbag safety, truck brake performance and SUV fuel tanks), advertising misrepresentations, and diminished product performance allegations.
- Represented a major insurer in litigation involving a temporomandibular joint (“TMJ”) replacement prosthesis. The litigation involved several thousand claimants who contended that the prosthesis caused degeneration of the mandibular condyle and fossa. Our specific responsibilities included participation in over 100 mediations and a complex class action settlement. Additionally, the firm was involved in a major insurance coverage claim aimed at allocating in excess of $100,000,000 in settlements among various insurers over several years of policy coverage.
Racketeer Influenced & Corrupt Organizations (RICO)
- Defeated class certification of racketeering, fraud, breach of contract and other claims on behalf of one of the nation’s largest casualty insurance providers in a number of related class actions alleging a fifteen year, industry-wide conspiracy to evade regulation.
- National counsel for large defendant in Sandwich Chef of Texas, Inc. v. Reliance Indemnity Ins. Co., et al., 319 F.3rd 205 (5th Cir. 2003), resulting in a Fifth Circuit opinion reversing class certification in case alleging conspiracy to defraud.
Debt Collection
- Obtained summary judgment in national class action case brought against debt collector pursuant to Fair Debt Collection Practices Act.
- Represented a nationwide mortgage company in federal court in a putative class action alleging violations of the federal and state debt collection laws. The case was settled favorably.
- Defeated several class action claims filed against a large furniture retailer alleging violation of the federal Bankruptcy Code arising out of debt collection practices.
- Represented two credit reporting services in two separate statewide class action cases against claims asserted under the Texas Debt Collection Act. The cases were settled favorably.
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