Author Archives: Adam Pulver

Consumer lawyer sued for malicious prosecution by Ashley Furniture

Earlier this month, I shared a decision sanctioning consumer lawyer Spencer Sheehan for bringing what a New York federal court concluded was a frivolous lawsuit against Starbucks based on its labeling of coffee as “100% Arabica.” I noted that Ashley Furniture, a furniture company that had been sued by Sheehan in Florida, had filed an […]

Eleventh Circuit rejects nondelegation-doctrine challenge to Universal Service Fund with two concurrences

In 1996, Congress directed the FCC to create a fund by which it ensures that Americans throughout the country have access to telecommunications services, to be funded by contributions from carriers. The FCC relies on the Universal Service Administration Company (USAC) to help administer the fund, including by calculating necessary contributions that are submitted to […]

3rd Circuit Won’t Force Arbitration Where Defendant Won’t Follow AAA Rules

Rosario Hernandez sued MicroBilt after a verification report the company issued inaccurately stated she was on a government watch list, leading to her being denied a loan. Citing a mandatory arbitration agreement in her loan application, MicroBilt moved to compel, and Hernandez dismissed her court complaint and submitted her claims to the AAA for arbitration. […]

Consumer lawyer sanctioned for frivolous Starbucks labeling lawsuit

Attorney Spencer Sheehan brought a class action in the Northern District of New York, arguing that Starbucks’ representation that a specific blend of coffee was “100% Arabica Coffee” was misleading, since it suggested there were no additives, including  potassium.  The district court dismissed the complaint, noting that there was no allegation that there actually was […]

Court approves CFPB settlement re training provider’s abusive loan practices

In July, the CFPB and 11 states filed an adversary complaint in bankruptcy court against Prehired — a company that operated a private, for-profit vocational training program for software sales representatives. Promising entry-level wages of over $100,000, Prehired charged $30,000 for its program and encouraged students to enter into income share loans. The CFPB alleged […]

8th Circuit rejects always-on-sale pricing lawsuit

If items are always on sale, are they really on sale at all? This is the question underlying the plaintiff’s claim in Hennessey v. The Gap, a case in which an Eighth Circuit decision issued yesterday, affirming the dismissal of a consumer class action. The named plaintiff sued the Gap and Old Navy, alleging that sale […]

7th Circuit Stays Order Compelling Samsung to Pay Mass Arbitration Fees it Agreed to Pay

Corporate defendants have long pretended that their interests in mandatory, individual arbitration clauses are directed at the fact that arbitration provides an efficient, adequate forum for consumers to vindicate their claims for relief– not in effectively blocking consumers from obtaining any meaningful relief. As more and more plaintiffs have been taking such defendants at their […]

11th Circuit Agrees That FCRA Statutory Damages Do Not Require Proof of Actual Damages

The Fair Credit Reporting Act provides that consumers that establish a consumer reporting agency has willfully failed to comply with the statute’s requirement may recover either (1) their actual damages, or (2) “damages of not less than $100 and not more than $1,000.” In Santos v. Healthcare Revenue Recovery Group, LLC, Experian argued that, in order […]

Senate advances CRA repeal measure of CFPB small business lending rule

In March, as a result of a lawsuit brought by the California Reinvestment Coalition, the CFPB finalized a rule under Section 1071 of the Consumer Financial Protection Act, requiring lenders to collect and report information about small business credit applications. Today, by a vote of 53-44, the Senate voted to invalidate the measure under the […]

Third Circuit finds confusing collection letters provide standing, but not informational standing

Jamie Huber brought a putative class action under the FDCPA, alleging that confusing collection letters she received from Simon’s Agency, Inc. were misleading and deceptive. A district court certified a class, and granted summary judgment in its favor. In so doing, it found that Ms. Huber had standing based on an informational injury, and that […]