Collective & Group Actions for Victims of Financial Crime

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9th Circuit calls timeout in giant class-action lawsuit against Qualcomm

Appeals court ponders waiting until after a decision in a related case before ruling

A U.S. Ninth Circuit Court of Appeals panel has paused further action in Qualcomm’s efforts to shrink the size of one of the largest consumer class-action lawsuits ever filed.

The three-judge panel, which heard oral arguments in December, postponed the case on Wednesday. The judges are considering whether they should go forward now or delay a decision until a separate panel of judges rules on whether Qualcomm violated anti-monopoly laws in a parallel case.

The judges hearing the class-action case requested both sides submit written arguments by March 20 on whether the appeal should be postponed. The court moved without Qualcomm or lawyers for smartphone buyers requesting a delay.

The San Diego company aims to overturn a lower court’s decision to allow a class of 250 million smartphone buyers nationwide to sue, claiming they were overcharged because of Qualcomm’s illegally inflated patent license fees.

Qualcomm contends such a large, diverse and unwieldy class of consumers would make it impossible for the company to exercise its due process rights to challenge whether consumers were harmed.

Billions in damages could be at stake. The lawsuit covers 1.2 billion cellphone sales over eight years.

The class-action is centered on U.S. District Court Lucy Koh’s ruling in May that Qualcomm violated anti-monopoly laws in a case brought by the U.S. Federal Trade Commission.

Qualcomm contends Koh made legal errors in the FTC case. It is appealing Koh’s decision, which is being heard by a separate 9th Circuit panel. Oral arguments were held in February. A decision is pending.

In the class-action, 9th Circuit Judge Ryan Nelson appeared sympathetic to Qualcomm’s arguments about the class size. He questioned lawyers about whether the lawsuit would still hold up if Qualcomm won a reversal of the FTC antitrust case. Qualcomm’s attorneys believed an antitrust reversal would derail the class-action suit.

Qualcomm declined to comment Thursday. The company’s shares ended trading down 3 percent at $79.17 on the Nasdaq exchange.

Source: https://www.sandiegouniontribune.com/business/technology/story/2020-03-05/appeals-court

Nygard company restructures finances in midst of sexual assault class-action lawsuit against owner

Nygard Group of Companies is financially restructuring its business to avoid bankruptcy, a company spokesperson said, as fashion mogul Peter Nygard faces several sexual assault allegations in New York.

Two weeks ago, the company announced Nygard was stepping down from the company and would divest his ownership stakes. Then on Tuesday morning, Nygard company filed a notice of intention (NOI) to file a proposal under the Canadian Bankruptcy and Insolvency Act, a spokesperson said in a statement sent to media.

This does not mean the company is going bankrupt, but that the company is seeking protection while it restructures its finances.

Given the lawsuits, “damage was certain to occur,” the spokesperson said.

Those damages include losing a top customer and one of the company’s financial lenders seeking immediate payment, the spokesperson said.

“The company will be working with several professional advisers during the process, including a trustee who will assist with the development of a restructuring plan, and in general, oversee the NOI process as a whole,” the spokesperson said.

The spokesperson twice stressed in the statement that it’s “business as usual” at the company and its stores while the financial restructuring takes place.

On top of being accused of rape in a class-action civil lawsuit, police in the Bahamas are investigating allegations made by four women — who are part of the class-action — regarding an alleged “sex trafficking ring.”

FBI investigators have raided Nygard’s offices in New York, but did not confirm that it was related to the allegations.

Nygard also faces legal action from Sitrick and Co., a Los Angeles-based public relations firm.

In October 2018, a California arbitrator ordered Nygard to pay what’s owed to the Los Angeles firm for work it did, plus interest and legal fees.

Nygard did not pay, so in July, Sitrick took the matter to the Manitoba Court of Queen’s Bench, which ordered Nygard to pay roughly $1.6 million.

None of the accusations have been proven in court and no criminal charges have been laid.

Source: https://www.cbc.ca/news/canada/manitoba/nygard-company-restructuring-sexual-assault-class-action-1.5492128

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