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Third Circuit affirms that certified class may include members who are unable to demonstrate any legal injury.
On July 22, 2015, the U.S. Court of Appeals for the Third Circuit ruled that a Rule 23(b)(3) plaintiff class action satisfies the Article III standing requirement that plaintiffs demonstrate an “injury in fact” so long as a named class representative meets that requirement. Under the ruling, a certified Rule 23(b)(3) class may include unnamed class members who cannot demonstrate that they have suffered an injury in fact. However, this new ruling makes clear that litigation classes may be certified without a showing that the unnamed class members satisfy the Article III injury in fact requirement. The ruling also provides a much expanded supporting rationale for its holding. Read More ›
Fraud claims are generally ill-suited for class action treatment. In nearly any class action involving fraud, plaintiffs face an uphill battle in establishing class-wide exposure to the alleged misrepresentations, which is only an initial element of the claim. A recent federal court decision (Simmons v. Author Solutions, LLC, No. 13cv2801, 2015 WL 4002243 (July 1, 2015)) nicely illustrates the difficulty plaintiffs face. Read More ›
DOL Proposes New Requirement That Workers Earn At Least $50,440 Per Year To Qualify For White Collar Exemptions
On June 30, 2015, the U.S. Department of Labor (“DOL”) released its long awaited proposed rule changes to the “white collar” overtime regulations under the Fair Labor Standards Act (“FLSA”). Although the DOL previously indicated they would simplify the FLSA’s often difficult to administer “duties test,” the DOL so far has left that test untouched. Instead, the DOL proposes to raise the salary level from which an employee can qualify for a “white collar” exemption from overtime pay requirements from $23,660 per year to approximately $50,440 per year. The DOL predicts this will cause employers to change the exempt status of nearly 5 million workers who are currently exempt from overtime requirements to non-exempt status – requiring the payment of overtime. The proposed rule still needs to undergo a public comment period before it can be implemented as a final rule. Read More ›
The Financial Services Blog offers the latest information on banking development and litigation trends. Topics range from commercial and consumer lending through bankruptcy, lender liability defense, and the Dodd-Frank Act through Regulations JJ.
Community Banks need to be aware of the risks posed by cryptocurrencies like Bitcoin, because their prevalence will only increase, writes the Federal Reserve Bank of San Francisco. Wallace Young, the Director of the Federal Reserve Bank of San Francisco, in the recent article “What Community Bankers Should Know About Virtual Currencies” in Community Banking Connections, outlines four risks undertaken by community banks that interact with businesses in the virtual currency ecosystem: Compliance, Reputational, Credit, and Operational. Read More ›
Continuity or Change? How the Supreme Court changed the law for lenders under the FHA without changing it at all.
After leaving the public, press, regulators, and lenders lingering for six months, the Supreme Court finally produced its 5-4 opinion in Texas Department of Housing & Community Affairs v. The Inclusive Communities Project, Inc., a blockbuster case in which the Court concluded that the Fair Housing Act permits statistically-based disparate impact claims. The Supreme Court’s opinion is important for two reasons. First, it finally puts the Supreme Court’s seal of approval on FHA disparate impact claims, a theory of liability that has been universally recognized by the federal courts of appeals. Second, it will likely embolden plaintiffs to file more suits using a disparate impact theory, which means lenders should evaluate their current policies and practices, especially discretionary pricing policies, to avoid engaging in practices that could be interpreted as discriminatory. Read More ›
Regional and community Banks often serve as Issuer Banks by providing credit and debit cards to their customers. They also can often face losses because of downstream merchant data breaches that expose the credit and debit cards to misuse. The well known data breach of Target in late 2013 and Home Depo in 2014 are but two very public examples. Read More ›
The International Services Group Blog is a resource for business leaders within the international commerce industry. Frost Brown Todd's international lawyers discuss the latest challenges for international trade and regulation, as well as solutions for those challenges.
An administrative judge recently handed down a stunning $605,250 fine against an employer for improperly completing its I-9s. The decision, U.S. v. Hartmann Studios, Inc. (OCAHO Case No. 14A00008, July 15, 2015), serves as a reminder that employers need to be taking I-9 compliance as seriously as the government, and that preventative measures such as extensive training and self-audits can help companies avoid the government’s crosshairs. Read More ›
On July 1, 2015, China issued Interim Measures for Internet Advertising Supervision and Management, with a deadline of July 30 for public comment. Read More ›
In February 2015, China’s State Administration of Foreign Exchange (SAFE) simplified procedures for foreign investors in certain respects. This is another step forward in making foreign direct investment into China less time consuming and bureaucratic. The two most important measures were these:
- Revocation of foreign exchange registration with SAFE – this can now be accomplished directly with qualified banks. SAFE will take on an indirect supervisory role through its supervision of FDI-related foreign exchange of the banking sector. How this will unfold in practice remains to be seen, so watch for the implementation of CXircular 13 to commence on June 1.
- Revocation of the registration requirement to confirm a foreign investor’s investment when it acquires an equity interest owned by a Chinese party - this relates to both cash and non-monetary forms of acquisition. The practical effect should be to provide more flexibility to contracting parties in the timing and price adjustments possible for acquisitions of interests of Chinese equity holders by foreign purchasers.
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