United States: Class Actions

A federal court dismissed a securities fraud class action against a payment technology company, finding that plaintiffs failed to adequately demonstrate that alleged misstatements about routing volume caused the stock price decline following DOJ antitrust disclosures. The court held that expert opinions cannot substitute for well-pleaded facts when establishing loss causation, and that a 6.6% price drop followed by quick recovery was insufficient to support the claim.

California businesses facing a wave of class action threats under the state's Invasion of Privacy Act may soon find relief as lawmakers advance a revised bill aimed at curbing aggressive demand letters. With over half a billion dollars already extracted through settlements, the legislative push to eliminate private enforcement of the pen register provision has gained momentum in committee, though significant work remains before the summer recess deadline.

The Ninth Circuit's reversal in Cocom v. ABM Aviation provides crucial guidance for California employers on drafting enforceable arbitration agreements. This ruling clarifies how courts should interpret arbitration scope language and distinguishes problematic unlimited agreements from properly limited employment-focused ones. The decision offers practical lessons on avoiding unconscionability challenges while maintaining effective arbitration programs.