Category Archives 2nd Circuit

A scientist who was accused of falsifying data in research on the purported health benefits of red wine has reportedly sued the University of Connecticut, claiming that it wrongfully dismissed him and violated his civil rights in doing so. Das v. Univ. of Conn. Bd. of Trustees, No. 13-6039748 (Conn. Super. Ct., Hartford, filed March 5, 2013). Dipak Das alleges that he was not allowed to introduce exhibits and testimony or to cross-examine witnesses during his five-day dismissal hearing, the culmination of an investigation that apparently found that he had fabricated and falsified data. He also alleges that the university notified 11 scientific journals before the investigative report on which the termination was based had been completed to advise them that he had “committed research misconduct,” and that the university did this “as a means of coercing the plaintiff into settling by harming his reputation and standing in the scientific community.”…

During oral argument before a Second Circuit Court of Appeals panel, the Food and Drug Administration (FDA) reportedly argued that it had “no obligation” to complete proceedings that the agency initiated to withdraw approval from certain uses of antibiotic drugs in livestock. Natural Res. Def. Council v. FDA, No. 12-2106 (2d Cir., argued February 8, 2013). Assistant U.S. Attorney Ellen London said, “It’s completely discretionary as to when to enforce the law as to certain drugs,” in urging the court to reverse a district court order requiring it to hold the withdrawal proceedings announced in 1977 notices. According to a news source, one of the panel judges appeared to agree with FDA’s position, suggesting that it could, in theory, be forced to divert resources from high priorities on the basis of lawsuits filed against it. More information about lower court rulings in the case appear in Issues 432 and 442 of this…

The North American Olive Oil Association has brought an unfair competition and false advertising action against The Gourmet Factory claiming that it sells its Capatriti® brand as “100% Pure Olive Oil” when it is actually made from “leftover olive skins and pits using a combination of chemical solvents and high temperatures.” N. Am. Olive Oil Ass’n v. Kangadis Food Inc., d/b/a The Gourmet Factory, No. 113-868 (S.D.N.Y., filed February 6, 2013). The process apparently creates a byproduct referred to as “pomace,” and the complaint alleges that products containing pomace may not be marketed and labeled as olive oil under “an array of olive-oil making conventions, standard industry practices, international regulations, and federal and state laws.” The association allegedly purchased tins of the defendant’s product from store shelves in New York and New Jersey and shipped them to an expert in Italy for testing, which purportedly confirmed the presence of chemicals and…

A company that issued Citrus and Allied Essences Ltd. a commercial umbrella insurance policy in 2006 and 2007 has filed suit in a New York state court seeking a declaration that it is not obligated to defend the food-flavoring company in suits by those alleging respiratory injury from diacetyl exposure or to pay damages. Cont’l Cas. Co. v. Citrus & Allied Essences Ltd., No. 650158/2013 (N.Y. Sup. Ct., N.Y. Cty., filed January 17, 2013). According to the complaint, Citrus and its other insurers have claimed that the primary insurance policies for those years have been exhausted by settlements with plaintiffs in the underlying lawsuits. According to the umbrella insurer, however, because the bodily injury did not take place during the policy period, those other policies have not been exhausted. The insurance plaintiff also seeks to recover the amount it paid under a reservation of rights to cover a “shortfall” to…

The NAACP’s New York state branch and the Hispanic Federation have joined those arguing in court that New York City’s restrictions on the size of sugary beverages sold by certain vendors, such as corner stores and delis, should not take effect on March 12, 2013. During the January 23 hearing, opponents, including several City Council members, apparently argued that the rule should have been adopted by the elected City Council rather than the mayor’s appointed health board and that it was too narrow, exempting certain other types of beverages and excluding convenience stores and supermarkets, to be fair. The American Beverage Association and groups including movie theater owners and Korean grocers were expected to oppose the rule, but the issue is reportedly complex for minority advocates in light of high obesity rates in the African-American and Hispanic communities. Still, these groups claimed in an amicus brief that the rule will…

A New York resident has filed a putative nationwide class action against the company that makes Red Bull energy drinks, alleging that the product does not, as advertised, “give you wings,” that is, provide more benefit than a cup of coffee. Careathers v. Red Bull GMBH, No. 12-369 (S.D.N.Y., filed January 16, 2013). According to the complaint, the defendants allegedly base their claims that the product will “significantly improve a consumer’s physiological and mental performance beyond what a simple cup of coffee or caffeine pill would do” on scientific studies. The plaintiff claims, “there is no genuine scientific research and there are no scientifically reliable studies in existence that support the extraordinary claims of Defendants.” The complaint outlines the beverage’s history and development, beginning as tonic created in Thailand in the 1980s, and cites research that analyzed energy drink ingredients and concluded, “With the exception of some weak evidence for…

Ruling that the named plaintiff’s claims are not typical of those of the putative class in a false-labeling suit brought against the companies that made and marketed Skinnygirl Margaritas®, a federal court in New York has denied his motion for class certification. Rapcinsky v. Skinnygirl Cocktails, L.L.C., No. 11-6546 (S.D.N.Y., decided January 9, 2013). The named plaintiff, a Massachusetts resident, allegedly purchased the product in that state as a gift for his wife who had indicated that she had been served the beverage during a party with friends and liked it. He brought the suit under New York statutes that apply to products purchased in New York and involve deceptive acts or practices involving in-state residents. He also claimed common-law breach of warranty. According to the court, the laws invoked do not protect the plaintiff’s purchases. While his alleged injury may be the same as class members, the plaintiff, “having not…

Soft drink manufacturers and restaurateurs have reportedly requested that the court reschedule oral arguments in their challenge to a New York City prohibition on the sale of sweetened beverages in sizes that exceed 16 ounces. N.Y. Statewide Coal. of Hispanic Chambers of Commerce v. NYC Dept. of Health & Mental Hygiene, No. 653584/2012 (N.Y. Sup. Ct., filed October 12, 2012). Additional details about the case appear in Issue 458 of this Update. According to a news source, the industry interests seek oral argument before January 2013, claiming it will take up to three months to “retool” their operations to comply with the new requirements, which will take effect in March 2013, if upheld by the court. City attorneys have apparently decided not to oppose the request, noting that everyone’s interest will be served if the matter is “resolved sooner rather than later.” See Reuters, December 5. 2012.

Green Mountain Coffee Roasters Inc. investors have reportedly filed a consolidated securities action against the company, claiming that they were misled about demand for Keurig and K-Cup products. La. Mun. Police Emp. Ret. Sys. v. Green Mountain Coffee Roasters, Inc., No. 11-00289 (D. Vt., filed October 29, 2012). The Louisiana Municipal Police Employees’ Retirement System sued the company for U.S. securities law violations in November 2011 when Green Mountain’s shares fell 34 percent in a single day, losing $3.1 billion in market value, after quarterly sales fell short of analysts’ expectations. A group of pension funds, seeking to represent all company investors, allege that “[u]nbeknownst to investors, and contrary to defendants’ statements that they were barely able to ship orders as they came in, Green Mountain Coffee Roaster’s warehouses were overflowing with unused and expiring coffee products that were not being sold to consumers.” The company is facing increasing competition as…

The Second Circuit Court of Appeals has certified to the New York Court of Appeals questions arising under state employment law in a dispute over the distribution of tips in Starbucks stores. Barenboim v. Starbucks Corp., No. 10-4912; Winans v. Starbucks Corp., No. 11-3199 (2d Cir., questions certified October 23, 2012). A federal district court determined that Starbucks properly distributed pooled tips to shift supervisors and that Starbucks was not required to include assistant store managers in its tip pools. The appellants in the consolidated appeals are a putative class of baristas who allege that shift supervisors are “agents” under New York Labor Law § 196-d and ineligible to share tips, and a putative class of assistant store managers who claim they are entitled to share in the tip pools because they perform the same tasks as baristas and have only limited management authority. The plaintiffs in both cases sought review…

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