By Jeffrey B. Margulies, Partner-in-Charge of the Los Angeles, CA office of Norton Rose Fulbright US LLP.
The approach of many plaintiff consumer class-action lawyers is not difficult to discern: Concoct a factual theory to support a claim under California’s consumer-friendly laws that survives a motion to dismiss and a motion for class certification. Even if the liability case is highly improbable, the economics of the exposure to a certified class of consumers will compel all but the bravest of defendants to settle, handsomely rewarding the plaintiffs’ lawyers with fees. District courts in the Northern District of California, home to a surfeit of cases over alleged mislabeling of foods and beverages, have allowed many dubious factual claims to proceed.
Yet, even as (or perhaps because) the Ninth Circuit has removed obstacles to consumer class actions such as ascertainability (Briseno v. ConAgra Foods, Inc.) and standing to pursue injunctive relief (Davidson v. Kimberly-Clark Corporation), a trio of recent district court decisions over sodas appears to signal either that the Food Court is growing less tolerant of factually implausible claims, or that the plaintiff’s bar has gone a bridge too far. Continue reading “Trio of Soda Cases Test the Limits of Attorney-Driven Class Action Lawsuits”