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Case ID: 3564 | Consumer Products | 07/20/2004
The Illinois Appellate Court has upheld a ruling favorable to the plaintiffs in a class action filed against Blockbuster Entertainment, Inc., on behalf of persons who have been charged excessive fees after April 1, 2001, when they failed to return videos, returned them in damaged condition, or returned videos past their due date. The action seeks unspecified compensatory damages, and an order forcing the company to change its policies.
During this litigation, several other similar state class-action lawsuits have been pending against Blockbuster, and in April 2001, Blockbuster entered into a nationwide settlement in the case of Scott v. Blockbuster, No. D. 162-535 (Jefferson County, Texas). As part of that settlement agreement, Blockbuster agreed to revise its membership application and its policies and practices regarding charges for unreturned videos and other rental items. After the settlement, the plaintiffs in the Illinois case filed an amended complaint alleging that if the Texas settlement were upheld, it would not affect claims arising after April 1, 2001 -- the end of the Texas settlement period. The plaintiffs renewed their allegations regarding Blockbuster's fee policies constituting unlawful penalties at that time. Blockbuster then filed a motion to dismiss the Illinois lawsuit, arguing that the Texas settlement agreement would prevent any further claims that the company was charging excessive fees. Blockbuster also argued that its new membership application provides for the resolution of disputes through a binding arbitration agreement and filed a motion to compel arbitration and stay the court proceedings. The trial judge denied Blockbuster's motion to compel arbitration, finding that the arbitration agreement provided an illusory remedy to consumers where consumers would have to pay a fee greater than the value of their underlying claim and be barred from participating in a class action. The judge found that by imposing this "negative cost-claim disparity" and prohibiting a class action, the arbitration agreement essentially immunized Blockbuster from arbitration-based challenges to its policies regarding extended viewing fees and non-return fees. The appeals court agreed. The action has been remanded to the lower court for further litigation. At Lawcash.com, it is our goal to keep you informed about important legal cases, class actions and settlements. Our lawyers offer free legal evaluations in tort cases, class actions, personal injury, and other lawsuits because we are dedicated to helping you resolve your legal complaints. Other Consumer Products Cases of Interest A national class action has been filed in Illinois against Sprint Communications Company, L.P. The action is brought on behalf of all U.S. residents, who are not Sprint customers, but who have had unauthorized charges added to their phone service by Sprint. The action is brought under the federal Communications Act and federal common law and seeks disgorgement of profits, penalties, compensatory damages and injunctive and declaratory relief. Do you ever wonder how much it really costs to make that CD that you are listening to, even including company overhead? The parties have reached a tentative settlement apparently valued at $16.38+ million in an action filed against music clubs Columbia House Company and BMG Music Service on behalf of music club members who bought CDs from them between January 1, 1995, and December 22, 2000. Persons eligible to participate should contact class counsel for more information. Kahn Gauthier Swick is investigating possible legal actions on behalf of persons who contracted hepatitis A in outbreaks this fall in Pennsylvania, North Carolina, Georgia and Tennessee. The outbreak in Pennsylvania was the largest, with 615 cases as of November 25, including three deaths. Some 300 people were sickened in the other three states. A class-action lawsuit recently filed alleges that five manufacturers of sunscreen have made false and misleading claims about the cancer-protective benefits of the products. The products, which include Coppertone, Banana Boat and Hawaiian Tropic, create a false sense of security that actually endangers people who use sunscreen, the suit states.
Several class actions have been filed against gym franchiser Bally Total Fitness Holding Corporation (NYSE:BFT) and certain of its officers and directors by stockholders who purchased the company's common stock between August 3, 1999, and April 28, 2004. The actions claim that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. A settlement valued at 65 Million dollars has been reached in the consolidated action concerning alleged efforts by drug manufacturer Smith Kline Beecham to delay or impede the release of generic versions of the antidepressant drug Paxil, in order to continue selling the name brand drug at higher cost. On November 18, 2004 court ordered notification of potential claimainst began. Notices will be mailed, and are scheduled to appear in newspapers and magazines all over the United States, leading up to a hearing on March 9, 2005, when the Court will consider whether to approve the settlement. |
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