Monthly Archives: July 2016

Securities Class Actions Continue To Rise

View Adam Doerr's Complete Bio at robinsonbradshaw.com Earlier this year, we reported that Multiple Studies Show Increase in Securities Class Actions. Cornerstone Research, one of the groups covered in our earlier report, recently issued its 2016 Midyear Assessment. This new analysis, which covers cases filed in January through June of this year, is consistent with several of the trends we reported previously, including the increasing number of securities class actions, the rise in the number of cases against smaller companies, and the increase in the number of Fourth Circuit cases.

Of particular interest is the significant increase in the number of merger & acquisition cases filed in federal courts. In the first half of 2016, there were 24 filings involving M&A transactions – a 167% increase from the second half of 2015. Given the size of this increase, it seems likely that this is related to significant changes in Delaware’s handling of merger objection litigation following the Trulia decision, and we will continue to monitor how this shift impacts merger litigation in federal courts in the Carolinas and the North Carolina Business Court.

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Recent Filings – June Digest

View Amanda Pickens’ Complete Bio at RBH.com Not every class action court filing in North and South Carolina becomes a full-length post on our blog. Here is a recap of June’s filings:

Campbell v. First Nat’l Collection Bureau, Inc., et. al., No. 1:16-cv-02342 (D.S.C. June 29, 2016) (putative class action brought on behalf of consumers residing in South Carolina alleging violations of the Fair Debt Collection Practices Act).

Girard v. Fantasy Far East, Inc., et. al., No.2:16-cv-02209 (D.S.C. June 24, 2016) (purported collective and class action brought under FLSA and state wage and hour laws for an improper “tip pool”).

Higgins v. James Doran Co., Inc., et. al., No. 2:16-cv-02149 (D.S.C. June 23, 2016) (asserting collective and class action claims under FLSA and state wage and hour laws brought by maintenance workers alleging that defendant real estate development companies failed to pay maintenance workers for all work time, including time spent while “on call”).

Rich v. Columbia Miyabi, Inc., et. al., No. 2:16-cv-02148 (D.S.C. June 23, 2016) (purported collective and class action brought under FLSA and state wage and hour laws for an improper “tip pool”).

Stone v. Charleston Miyabi, Inc., et. al., No. 2:16-cv-02129 (D.S.C. June 22, 2016) (collective and class action brought under FLSA and state wage and hour laws for an improper “tip pool”).

Cole, et. al. v. Santa Fe Natural Tobacco Co., Inc., et. al., No. 1:16-cv-00687 (M.D.N.C. June 21, 2016) (putative class action seeking both damages and injunctive relief against defendant cigarette manufacturer alleging that defendant misled consumers by labeling and advertising their cigarettes as “natural,” “additive free,” and “organic”).

Weckesser v. Knight Enterprises, S.E., LLC, No. 2:16-cv-0253 (D.S.C. June 20, 2016) (this is the second of two purported collective and class actions brought under the FLSA and state wage and hour laws alleging that defendant misclassified cable installation technicians as independent contractors and failed to pay overtime and minimum wage).

Bass v. 817 Corp., et. al., No. 2:16-cv-1964 (June 15, 2016 D.S.C.) (purported collective and class action for an improper “tip credit”).

Graham v. Bentsen, et. al., No. 1:16-cv-00612 (M.D.N.C. June 13, 2016) (putative class action on behalf of shareholders of Krispy Kreme Doughnuts, Inc., against the company and its officers and directors alleging violations of Sections 14(a) and 20(a) of the Exchange Act arising out of a proposed merger of its operations with a private Dutch company JAB Holdings, B.V. through its Delaware and North Carolina entities).

Ravey v. TransEnterix, Inc., et. al., No. 1:16-cv-00599 (M.D.N.C. June 9, 2016) (In addition to Bankley, this is the second putative class action filed by shareholders of TransEnterix, Inc., a publicly traded biotech company, alleging 10b-5 and 20(a) claims against TransEnterix, Inc. and two high-ranking executives. The PSLRA deadline to seek appointment as lead plaintiff expires August 1.).

Zajac v. Ice House on Bohicket, LLC, et. al., No. 2:16-cv-01869 (D.S.C. June 9, 2016) (this is the second of two purported collective and class actions asserted against Red Wing brought under the FLSA and state wage and hour laws for an improper “tip credit”).

Zajac v. Red Wing, LLC, et. al., No. 2:16-cv-01856 (D.S.C. June 8, 2016) (purported collective and class action under the FLSA and state wage and hour laws for an improper “tip credit”).

Turzak v. ASB Enter. Inc., No. 2:16-cv-01810 (D.S.C. June 3, 2016) (purported collective and class action under the FLSA and state wage and hour laws alleging that defendant family restaurant failed to pay servers overtime and minimum wage and implemented an improper “tip credit”).

Bankley v. TransEnterix, Inc., et. al., No. 5:16-cv-00313 (E.D.N.C. June 2, 2016) (putative class action on behalf of shareholders of TransEnterix, Inc., a publicly traded biotech company, asserting securities violations for providing allegedly false and/or misleading information about the company’s business in its press releases, shareholder conference calls, and securities filings).

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