Insights on Class Action Defense

For the last several years, consumer class actions targeting “greenwashing” have become increasingly common. In 2024, Lululemon Athletica Inc. and Lululemon USA Inc. were on the receiving end of such a lawsuit, but they recently prevailed on a motion to dismiss.

Online arbitration provision for a web-based application is enforceable, reversing a lower court decision and essentially blocking a proposed class action.

Store credits not redeemable for cash are not unclaimed property under California’s Unclaimed Property Law.

On March 18, retailer Sears Holdings Corp. was hit with a $5.5 million lawsuit in Illinois’ Cook County Circuit Court by clothing company Sprockets Clothing Inc. (which is now known as SCI Apparel Inc.).

Macy’s, Inc. and subsidiary Bloomingdale’s, Inc. were recently served with a class action complaint alleging that the retail chains misled consumers with a “phantom pricing scheme” that inflated the savings available on items marked for sale.

In 2013, David and Katina Spade purchased a mattress from Select Comfort Corp. (doing business as Sleep Number) that featured remote control operation of the height of the foot and head portions of the mattress.

Consumer class actions against fashion retailers are on the rise, and the most recent target is Saks Fifth Avenue.

Video game developer Activision Blizzard, Inc. recently won a key victory in the ongoing battle over the right of publicity when a California state court judge dismissed former Panamanian dictator Manuel Noriega’s well-publicized lawsuit.

The French luxury goods conglomerate LVMH Moët Hennessy Louis Vuitton S.A. (LVMH) recently settled its long-running court battle with eBay, Inc. over the online auction website’s alleged distribution of counterfeit luxury goods.

In the last year, more than 17 class actions have been filed against retailers based on their alleged collection of ZIP codes from their customers.