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Consumers are misled by some mass tort drug injury ads: new academic study

By: Alison Frankel

Advertising by personal injury lawyers – or by legal marketing firms working on their behalf – is a perennial grievance of the tort reform crowd. This week, the American Tort Reform Association issued a report claiming that trial lawyers and legal marketing firms trolling for mass torts clients spent about $186 million on broadcast ads just in the second quarter of 2018. Since much of the advertising targets pharmaceutical products with allegedly dire side effects, you frequently hear groups sympathetic to the pharmaceutical industry argue that trial lawyer ads cost lives: Patients see lawyers’ ads, stop taking their medications and, according to tort reform assertions, suffer the consequences.

There’s scant unbiased evidence of this phenomenon, as I told you in a column last year about a House Judiciary Committee hearing on trial lawyer advertising. The one study that claimed to have found actual patients stopped taking medication – the blood thinner Xarelto – in response to trial lawyer ads was sponsored by Janssen Pharmaceuticals, which makes Xarelto.

But a new paper co-authored by University of Oregon law professor Elizabeth Tippett, a key witness at last year’s congressional hearing, offers some empirical evidence that drug injury ads by trial lawyers and legal marketing firms do, in fact, mislead some consumers. And when those ads are deceptively framed as health warnings, Tippett and her co-author found, patients are less likely to refill or renew prescriptions.

“This finding is concerning because it suggests that after viewing drug injury advertisements that appear to be public health warnings consumers may decide to avoid taking the featured medication,” the paper said. “Deceptive drug injury advertisements are likely to be misidentified and serve to increase the perceived risks associated with the medications they feature.”

Tippett and co-author Jesse King of Weber State University conducted two studies, the results of which were posted to the Yale Journal of Health Policy, Law, and Ethics. In one, they sought to distinguish the impact of forthright and “deceptive” ads by showing about 370 consumers two actual ads about the reflux drug Reglan. One of the ads purported to be a public service warning about the drug’s side effects. The other was a more transparent pitch for prospective plaintiffs to contact a law firm. Some consumers were instructed the ads were pro-consumer. Others were told ad sponsors had a profit motive. The study found that uninformed consumers were more likely than those who received the profit-motive instruction to say they would not refill a prescription for the drug.

“Providing information about the purpose of these advertisements was found to increase the likelihood that participants would seek additional information about the medication and to reduce the perceived likelihood of experiencing the primary side effect discussed in the advertisements,” the paper said. “Both of these effects are encouraging.”

In the second study, the researchers wanted to test the corrective impact of pharmaceutical ads on consumers who have seen drug injury ads from trial lawyers and marketing firms. The experiment, which involved ads for the antidepressant Paxil, showed once again that consumers who view ads framed as public health warnings are likely to perceive greater risk from the targeted drug. The corrective pharma company ad did somewhat reduce the impact of the deceptive ad, the study found.

The big takeaway from the two experiments, according to the paper, is that consumers can be tricked by drug injury ads that look like health warnings. “Ad content can have a marked difference in how consumers process the persuasive content of messages and ultimately on their behavioral intentions,” the professors said.

They recommended stepped-up enforcement to mitigate the impact of the deceptive ads. The sort of disclaimer the American Medical Association has called for, the professors said, might help, but their studies found that even a prominent disclaimer “did not mitigate the influence of the deceptive ad on behavioral intentions towards filling a prescription.” Instead, the professors suggested that state bar associations get more aggressive about policing deceptive injury ads from lawyers. Historically, there’s no disciplinary precedent on deceptive ads, the paper said, in part because neither competitors nor consumers have brought complaints. (Competitors don’t want to put a crimp in their own advertising and deceived consumers typically don’t pay close attention to ad sponsors.) But state bars, they said, could “take the initiative to identify the worst offenders and take action against them.”

Even the threat of bar discipline, they acknowledged, wouldn’t stop deceptive ads by legal marketers that don’t practice law. Thorough regulation of deceptive drug injury ads, the professors said, would require help from the Federal Trade Commission, which has power over companies beyond the reach of state bar disciplinary committees.

The profs’ final word: The debate over drug injury advertising needs more study and more facts. Amen to that.

Candy and snack companies sued for packages with empty space instead of extra product

By: Robert Loerzel

“Slack fill” isn’t a phrase you often hear in everyday speech. Most people don’t even know what it means, even though they have experienced it. According to the U.S. government’s definition, “slack fill is the difference between the actual capacity of a container and the volume of product contained therein.” In other words, it’s that empty space you were disappointed to find inside a box of candy you bought at a movie theater—when the box turned out to be only half full. And it’s the air inside a bag of potato chips—all of that space above and around the chips.

“This is one of those issues that gets consumers riled up. They feel cheated,” says Edgar Dworsky, a former Massachusetts assistant attorney general who’s now a consumer advocate in Boston running the Consumer World website.

But does feeling cheated justify suing? Some people clearly think so. According to a 2017 report by the U.S. Chamber Institute for Legal Reform, plaintiffs lawyers filed at least 29 lawsuits in 2015 alleging that companies cheat shoppers with deceptively large packages—followed by another 37 slack-fill cases in 2016. Those tallies are mostly federal cases, without counting potentially dozens of state lawsuits.

“I think it’s only grown since we wrote that report,” says Cary Silverman, a partner at Shook, Hardy & Bacon in Washington, D.C., who co-authored the U.S. Chamber report with James Muehlberger, a partner in his firm’s Kansas City, Missouri, office. “They’re nuisance lawsuits,” Silverman says. “They are extremely easy to bring. Go over to the supermarket and shake a box. And if it rattles, that’s a lawsuit. … It makes a mockery of the civil justice system.”

But Ryan J. Clarkson, managing attorney at the Clarkson Law Firm in Los Angeles, says he has a higher purpose in mind when he represents plaintiffs against candy companies. “Slack-fill litigation is important to make sure manufacturers are using packaging that is not false, deceptive or misleading,” he says. “It’s all about corporate accountability.”

Maia Kats, director of litigation for the Washington, D.C.-based Center for Science in the Public Interest, says many slack-fill cases have merit. “Clearly, if you are a chip manufacturer and you blow up the chip bag three or four times, you are doing so for a reason—that is, to give the impression to consumers that they are receiving more product than they are actually receiving,” says Kats, whose group has not filed any slack-fill lawsuits. “The motivation is to encourage purchases at a higher price point, and that’s classic consumer deception.”

As an example of such deception, Clarkson points to Jujyfruits. In a federal lawsuit in San Francisco, Clarkson won preliminary approval on June 26 for a $2.5 million settlement with Ferrara Candy. Clarkson’s client, Thomas Iglesias, sued after spending $4 on a box of Jujyfruits at a movie theater concession stand in San Francisco and discovered that the box was roughly half full. Illinois-based Ferrara has agreed to pay up to $7.50 each to shoppers who purchased boxes or bags of Jujyfruits, Lemonhead, Jaw Busters and other candies in the past five years. And Ferrara says its packages will have less empty space in the future: Boxes will be 75 percent full of candy, while bags packaged within boxes will be 50 percent full. “We think it’s an excellent result for consumers,” Clarkson says.

MEASURING EMPTY SPACES

Slack-fill lawsuits, which often seek class action status, hinge on the U.S. Food and Drug Administration’s definition of “nonfunctional slack fill.” FDA rules recognize several reasons why it’s permissible for companies to leave some empty space in packages. For example, food may settle inside a box during shipping. Or some air may be necessary to protect the food.

As Dworsky explains, “The potato chip manufacturers will tell you: ‘We blow up the bag to create this cushion, so when all the bags are packed in a carton, you have this cushion to help protect the chips from breaking.’ My sense is that’s a legitimate reason.” When shoppers file lawsuits complaining about empty space in packages, it’s up to the courts to determine whether there’s a legitimate explanation for that slack fill.

“We’ve been able to prevail in some cases where we pointed out the weight on the packaging,” says Kenneth K. Lee, a partner at Jenner & Block in Los Angeles. “But other courts have said: ‘That’s not enough. It’s too hard to tell for some consumers to figure out exactly how much is in there.’ ”

Lee has successfully defended New Jersey-based food conglomerate Mondelez International Inc. against three slack-fill lawsuits that complained about the packaging of Sour Patch candies, Swedish Fish and Go-Paks of Mini Oreos and other cookies. Lee says he often asks judges to use common sense. “What we pointed out a lot of times is that if you just pick up the box of food or candy … you can feel the product shifting and moving,” he says. “So you know it’s not filled to the absolute brim.”

U.S. District Judge Sara L. Ellis seemed sarcastic in a Feb. 28 ruling in Chicago, when she tossed a lawsuit against Fannie May Confections Brands. She noted that plaintiffs Clarisha Benson and Lorenzo Smith “were saddened to discover upon opening their boxes of Mint Meltaways and Pixies that the boxes were not brimming with delectable goodies.” The judge dismissed these “barebones allegations.”

And she also set up a sort of Catch-22 for shoppers who want to sue: After you’ve purchased one package and discovered that its contents are more meager than expected, that serves as your warning about future purchases. “Already aware of Fannie May’s alleged deceptive practices, plaintiffs cannot claim they will be deceived again in the future,” Ellis wrote.

In Jefferson City, Missouri, U.S. District Judge Nanette K. Laughrey made the same point when she granted a summary judgment for the Hershey Co. on Feb. 16. Robert Bratton was suing the chocolate-maker, complaining about the space in Reese’s Pieces and Whoppers packages. But Bratton testified that he’d bought these candies hundreds of times over a decade—even though he knew the boxes were 30 to 40 percent empty. “I had a good idea that that’s what I was going to get, yes, ma’am,” he said, pointing out that he didn’t have much choice when he was at a movie theater with his children. “I needed to buy the candy and … Whoppers and Reese’s is what I generally get for the kids. … I can’t take outside food into the theater. So I’m kind of stuck with what they have.” This testimony led the judge to conclude that Bratton “cannot demonstrate that he was injured by any purportedly deceptive practice by Hershey.”

JUICY INCENTIVES

Such rulings may discourage slack-fill lawsuits, but settlements like Ferrara Candy’s agreement in the Jujyfruits case may offer an incentive for litigants. When that settlement comes up for final approval on Oct. 25, Clarkson’s firm will seek $750,000 in fees, plus costs and expenses, while asking for Iglesias to get $5,000. Silverman, the lawyer who co-wrote the U.S. Chamber report, criticizes these fees as exorbitant, pointing to them as an example of how money motivates frivolous lawsuits. But Clarkson says it’s fair payment for his firm’s work, including the hiring of experts. “If we lose at any stage, we run the risk of getting paid nothing,” he says.

David Greenstein of Los Angeles says he’s filed roughly 75 slack-fill cases over the years. “I’m almost 80 years old, and I remember growing up when you could trust what was in a box,” he says.

A former lawyer who was disbarred after pleading guilty to charges involving insurance fraud, Greenstein usually files his lawsuits without legal representation. “I would describe myself as a prolific plaintiff,” says Greenstein, author of the e-book Sue and Grow Rich: How to Handle Your Own Personal Injury Claim Without an Attorney. And he’s won some settlements and court victories.

In 2016, the California company Adams & Brooks was permanently enjoined from selling 4-ounce bags of P-Nuttles Butter Toffee Peanuts in the state after Greenstein sued in Orange County Superior Court, complaining that the company’s bags were 40 percent empty.

Greenstein was not awarded any money. “I get settlements, but they are not a lot of money,” he says, adding that money isn’t his main motivation. “When I see now how companies are just screwing over people with slack fill, … I figured I can do something.”

Silverman says many slack-fill lawsuits end in private settlements, with their details shrouded in secrecy. Few slack-fill cases have achieved class action status, but even the possibility of that happening is enough to scare companies into paying plaintiffs to go away, he says.

“These suits are just going to continue unless companies are willing to fight them out a little bit,” he adds.

But consumer advocate Dworsky says slack fill is a perfect illustration of why class actions are necessary. “No individual consumer is going to say: ‘I’m going up against Procter & Gamble because of the way they package this product.’ I mean, they have lost a dollar or two. But are they going to spend thousands on hiring a lawyer to make their point? You can only do it if you gather up people. You absolutely need consumer class actions.”

Arizona attorney general seeks to intervene in ‘serial litigator’ case

By: Marian Johns

As part of an effort to stop an attorney who has filed nearly 2,000 disability lawsuits in Arizona in recent years, state Attorney General Mark Brnovich has filed a motion to intervene in a federal appeal related to what he calls the “serial litigator.”

The Arizona Attorney General’s Office recently announced its filing of the motion to intervene in Peter Stronjnik’s appeal to the Ninth Circuit Court after a U.S. District Court judge dismissed 15 of Stronjnik’s lawsuits and consolidating the remaining suits for appeal.

“The federal court has responded with sharp criticisms for  Strojnik’s litigation tactics, calling these suits ‘cookie-cutter lawsuits, right down to the same typographical errors,’ while noting Strojnik engaged in ‘unethical extortion of unreasonable attorney’s fees,'” the Attorney General’s Office said in a statement.

According to the Attorney General’s Office, Strojnik filed nearly 2,000 disability lawsuits in Arizona and demanded large settlement amounts, some from small business in the state that do not have legal counsel. The Attorney General’s Office said it has intervened and obtained a dismissal for more than 1,000 of the lawsuits, although Stronjnik filed 140 new suits in federal court.

Trial Lawyers Are Behind Rhode Island’s Global Warming Lawsuit Against Big Oil

By: Michael Bastasch

Rhode Island’s global warming lawsuit against 21 oil companies is being coordinated with trial lawyers who stand to make millions, if not billions, of dollars on similar lawsuits across the country.

The plaintiffs firm Sher Edling LLP is handling six other lawsuits filed by California cities and counties against oil companies, including ExxonMobil, Chevron and BP. Sher Edling handles these cases in exchange for a percentage of any court winnings, called a contingency fee.

Rhode Island Attorney General Peter Kilmartin announced legal action against oil companies on Monday, alleging the defendants knew “for nearly 50 years that greenhouse gas pollution from their fossil fuel products has a significant impact on the Earth’s climate and sea levels.”

However, Kilmartin’s press release does not mention the fact coordinating with trial lawyers to pursue legal action over global warming. Kilmartin announced the climate lawsuit at an event with Rhode Island politicians, including Democratic Sen. Sheldon Whitehouse.

Kilmartin, a Democrat, did not respond to The Daily Caller News Foundation when asked about contingency fees Sher Edling could reap if the court rules in the state’s favor.

Kilmartin joined a group of state attorneys general, led by former New York AG Eric Schneiderman, dedicated to enforcing the goals of the Paris climate accord, which the Trump administration plans to withdraw from in two years.

Rhode Island will become the first state to sue oil companies for the alleged damages caused by global warming, but they are only the latest state officials to turn to trial lawyers.

Sher Edling is handling climate lawsuits for California local governments against oil companies, arguing, as with Rhode Island, the damage allegedly caused by global warming violates state nuisance laws.

Kilmartin’s complaint further alleges oil companies “concealed the dangers, sought to undermine public support for greenhouse gas regulation, and engaged in massive campaigns to promote the ever-increasing use of their products at ever greater volumes.”

The suits mimic tactics used against the tobacco industry, which is exactly what Democratic politicians have been advocating for. Whitehouse, for example, has called on the Justice Department to launch anti-racketeering investigations into fossil fuel companies.

“The Ocean State has so much at stake in the fight against climate change,” Whitehouse said in a joint statement with Kilmartin.

“I commend Attorney General Kilmartin for his leadership in holding some of the world’s most powerful corporations responsible for the damage they’re inflicting on our coastal economy, infrastructure, and way of life,” he added.

However, a federal judge dismissed a similar lawsuit brought by San Francisco and Oakland against five major oil companies, also including Exxon, Chevron and BP.

U.S. District Judge William Alsup, a Clinton appointee, dismissed the lawsuits in late June, ruling the “scope of plaintiffs’ theory is breathtaking.”

“It would reach the sale of fossil fuels anywhere in the world, including all past and otherwise lawful sales, where the seller knew that the combustion of fossil fuels contributed to the phenomenon of global warming,” Alsup ruled.

Sher Edling did not respond to TheDCNF’s request for comment.

Halo Top is being sued for over $5 million for ‘routinely’ under-filling its pints ‘for years’

By: Madison Roberts

Two customers in California think part of the reason Halo Top is so “guilt-free” is because they aren’t fully filling their pints.

In a class action lawsuit, Youssif Kamal and Gillian Neely allege that the light ice cream brand has been “routinely” under-filling their ice cream packages, and that customers aren’t getting what they pay for, The Daily Meal reports.

“Halo Top underfills its ‘pints’ of ice cream,” the complaint reads. “Dramatically so at times, and as a course of business. Purchasers of the premium-priced ice cream simply have no idea how much ice cream they will get each and every time they buy a Halo Top ‘pint.’ And Halo Top has been doing this for years.”

The 13-page complaint is addressed to Eden Creamery, LLC, Halo Top’s parent company, and extensively details complaints about Halo Top’s “misleading advertising.” The complaint alleges that so much of Halo Top’s promotional value relies on being low-calorie “per pint,” but each pint contains a different amount of ice cream.

“Although Halo Top markets and sells its ice cream in pints, it does not actually deliver a pint of ice cream to its customers,” it reads.

The complaint is being filed on behalf of more than 100 people from multiple states, and they are seeking over $5 million, exclusive of interests and costs for the missing ice cream.

“We have never and would never ‘underfill’ our pints,” a spokesperson from Halo Top told PEOPLE in a statement. “Product settling can occur from time to time due to everything from heat fluctuations to altitude changes during shipping and handling.”

Food Navigator consulted lawyers on the matter and stated that Halo Top will likely base their defense on “slack fill,” which refers to the empty space in a container that serves a functional purpose, like protecting a product during storage or transport. But the website notes that the laws would not protect a company that purposefully fills a package “substantially less than its capacity” or any type of slack fill that doesn’t serve a functional purpose.

Legal Finance Companies Descend On Florida Convention To Build Relationships With Trial Lawyers

By: Maya Siobhan Redding

As Florida trial lawyers gathered last week for an annual meeting featuring an array of trending litigation seminars, another industry set up shop at the convention hall site.

The Florida Justice Association’s annual convention held June 19-22 attracted 41 vendors, including a group of “lawsuit lenders” – businesses that provide cash advances to plaintiffs in exchange for a percentage of any eventual settlement or recovery.

Among the dozens of vendors were six lawsuit lenders, also known as “litigation funders” – Oasis Financial, Client Legal Funding, HMRFunding, LawCash, Momentum Funding and Fast Funds.

Jennifer Arend, marketing manager of Client Legal Funding, said that maintaining strong relationships with attorneys is a constant for the industry.

“We strive to have personal relationships with the attorneys because we don’t do any direct marketing to clients,” Arend said. “Our clients are the attorneys. We want to have that one-on-one relationship with them so when something does happen and their clients fund with us or we fund their case, they can call us one-on-one and talk about the case with them.”

In spite of the industry’s growth, controversy persists, particularly as litigation lenders defend criticism that plaintiffs who receive funds are forced to pay exorbitant interest rates and administrative fees.

The industry doesn’t agree with identifying as lending companies, as the investments are not guaranteed to be paid back in the instance the attorney loses the case.

Members of the industry advise plaintiffs to seek other options such as borrowing from friends and family before signing a contract with them, as it should be treated as an emergency option, they say.

“It’s non-recourse so if they lose, we lose,” said Eileen Lagunas, SE field director of Oasis Financial. “A lot of this business is attorney relationship-driven because of the fact that our interest is much higher than a traditional bank. They’re exorbitantly higher and that’s why if you’re coming to us, it’s the worst-case scenario. I don’t pitch it otherwise or else I don’t feel right.”

In Florida, a man is challenging the structure of these agreements. Last year, he sued Certified Legal Funding, seeking relief under Florida’s Deceptive and Unfair Trade Practices Act, the Consumer Finance Act and the Interest, Usury and Lending Practices Act.

The funding agreements between Taylor and CLF totaled $10,839.82 for two separate advances. According to Taylor’s complaint, CLF charged him 51 percent interest, a $600 processing fee and a $345 origination fee, which was charged every six months.

CLF has removed the case to Tampa federal court under the Class Action Fairness Act of 2005. It has also filed a motion to dismiss the case.

Taylor is seeking to represent a class of consumers from 24 states whose agreements, he says, are all governed by Florida law.

“The interest rates contracted for by CLF are in excess of those permitted to be charged pursuant to the CFA and the Usury Act,” his complaint says. He has not responded yet to CLF’s motion to dismiss.

Florida’s neighbor to the north will soon decide the issue. Earlier this year, the Georgia Supreme Court agreed to hear the appeal of a Court of Appeals decision that said these agreements are not loans and not subject to usury laws.

Other regulatory developments include a settlement between the Colorado Attorney General’s Office and two funders – Oasis and LawCash. Years ago, the AG’s office determined the products were loans, leading to a court fight.
A South Carolina agency determined the same in 2014, and class actions similar to Taylor’s have been filed by customers.
Arend says her company, Oasis, offers a more financially feasible option for those needing funding and striving to settle their cases.

“We’re immensely different from a lot of the other funding companies because our company will entertain reductions. What a lot of the other companies don’t understand is that if at the end of the case there is only X amount, there is no way to settle a case if no one is bending on that amount,” she said.

“If a client owes $200,000 but the settlement is only $100,000, there’s no way they can settle if they can’t pay everyone back. We would never want to step in and keep them from setting a case.”

There’s a link between personal injury cases and lawsuit lending companies, as plaintiffs who have allegedly endured life-altering injuries often need immediate financial assistance, as well as surgical funding. The industry has to deal with claims of companies taking advantage of people in desperate times, being that some companies operate with no cap on interest rates.

However, many of the companies present emphasized on being client-driven and providing options that serve everyone involved.

“We never over-fund a case. We want the plaintiff to walk away with money in their pocket when it’s all said and done,” said Bernard Lebs, regional sales manager of LawCash. “If we get a check for $3,000 and a plaintiff gets a check for $500, it’s kind of upside-down. These are non-recourse advances. They are not a loan. There are no payments being made on a monthly basis.

“The advances that we give are usually paid back to us at settlement. There are some cases that settle at what we don’t think it should have settled for. We may have to take a small reduction to help the plaintiff out as well. We do what we have to do to make the client happy and make it right.”

Law Professor: “Lawsuit Lenders are Like Sharks to Shipwrecks”

A law professor at Roger Williams University School of Law said “lawsuit lenders are like sharks to shipwrecks” who “capitaliz[e] on tragedy” in a response to a defense of the industry in Crain’s New York Business.

Professor Jenna Wims Hashway, who wrote Litigation Loansharks: A History of Litigation Lending and a Proposal to Bring Litigation Advances Within the Protection of Usury Laws, pushed back on an argument that said plaintiffs would be hurt by lawsuit lending regulation. She said it isn’t regulation, but “the usurious, extortionate rates of interest charged by this unregulated industry that hurt consumers the most.”

The lawsuit lending industry has been the subject of intense media scrutiny after reports of abuses in the New York Times and New York Post. Professor Hashway called it “low-risk, usurious profiteering, directed at vulnerable consumers.

Now the Personal Injury Lawyers Have Scooters in Their Sights

By: Anousha Sakoui & Edvard Pettersson

Bird Rides Inc. and other scooter startups have drawn fire from pedestrian advocates, politicians and annoyed citizens. Now they have a new nemesis: personal-injury lawyers.

In recent months, people hurt riding (or hit by) scooters in San Francisco and Los Angeles have been calling legal firms to file claims. Smelling opportunity, firms have even carved out dedicated spots on their websites urging people to file scooter-related claims. “Our thought when we first saw them “flying” around Santa Monica and haphazardly abandoned on city sidewalks: This is an accident waiting to happen,” blared McGee Lerer & Associates.

Los Angeles abounds with personal-injury lawyers on the hunt for cases. “Lawyers will be lawyers when there’s the potential for some money to be made,” says John Perlstein, a 25-year veteran who litigates accident claims referred to him by other attorneys. “Most of them are trying to keep the doors open and hope for a million-dollar case to come their way.” There are no records so far of lawsuits being filed against Bird or its rival Lime, but lawyers say it’s just a matter of time.

The scooters began appearing in many parts of the U.S. last year. They can be unlocked with a smartphone for a buck, cost 15 cents a minute to rent and reach 15 miles an hour. The machines have proved popular—and polarizing. The companies see them as a logical next step to the transportation revolution started by Uber and Lyft. Foes consider the scooters an annoying fad among tourists and tech workers, who zip around imperiling themselves and others.

Investors, who have poured hundreds of millions of dollars into scooter startups,  expect the machines to become a lasting feature of the urban landscape. Both Bird and Lime are in the process of raising large investment rounds to fuel their expansion. Though the scooter revolution is on hold in San Francisco while operators apply for permits, the machines are expected to re-appear within weeks as the city conducts a pilot program. They continue to weave through the traffic in Santa Monica and other cities. Accidents happen.

Catherine Lerer, one half of McGee Lerer’s husband-and-wife legal team, says she got the first scooter-related call about five months ago. A 16-year-old boy had been injured falling from a Bird scooter, and the family wanted to make a claim. The phone has been ringing ever since. Many of the mishaps involve young riders who broke a collar bone or an arm in a single-rider accident, when the brakes locked or they lost control of the scooter, Lerer says.

Los Angeles lawyers expect there to be more scooter incidents in LA, where the automobile famously rules, than in San Francisco, where cyclists, runners and cars compete for lane space. “Local drivers aren’t as used to sharing the road and also tend to drive more aggressively,” says Robin Saghian, a personal injury lawyer with Omega Law Group in Beverly Hills.

In addition, scooter riders can be more reckless crossing intersections at fast speeds, which increases the chance of an accident, he says. “We’re getting about 2 to 5 calls a week and it’s getting more common,” Saghian says. The inquiries about scooter-related accidents, including by pedestrians who get hit by a scooter, have jumped since his firm posted a blog about the issue on its website in April.

The McGee Lerer lawyers say they’ve heard of accidents involving single scooter crashes due to malfunctioning tires or brakes, road hazards, as well as pedestrians hurt tripping over scooters left on paths. They’ve seen children riding the scooters, people riding tandem without helmets, riders zipping along sidewalks and scooters left abandoned in the middle of sidewalks.

California requires riders to wear helmets, have a driver’s license and refrain from carrying passengers, riding on sidewalks or leaving scooters on their sides. Santa Monica will soon vote on a pilot program to rein in scooter rental companies like Bird, according to the Los Angeles Times. The proposals would cap the number of scooters and apply tougher penalties for rule breaking. A rental company could lose its permit if it endangers public health or safety.

Earlier this year, after a local woman collided with a motor vehicle and wound up in hospital, Bird began asking riders to wear helmets, supply a driver’s license and prove that they’re at least 18 years old. It’s not clear how strictly these rules are enforced. Lime asks users to wear head protection, too, and was offering riders a free helmet if they have an account balance of $10 or more.

Bird also specifies that riders agree to use the scooters at their own risk and limits its own liability to $100. Perlstein says a waiver won’t bar claims for gross negligence. He also says Bird may be an easy target because as a startup it’s unlikely to have an in-house legal team willing to fight protracted lawsuits. Like Uber and Lyft, the scooter company may be more willing to settle before a lawsuit is filed, he says.

Bird, which is based in Santa Monica, declined to comment. San Mateo-based Lime says it hasn’t been sued and is unaware of incidents involving people using its scooters.

Lawyers say winning damages won’t be simple. Pedestrians who claim they were injured dodging a scooter on the sidewalk typically have no one to sue because the riders are long gone. Riders hit by cars probably have the strongest cases. “I have been turning away a lot of callers because I need to have an insurance company to go after,” Lerer says.

She expects the number of accidents to increase, particularly on college campuses and heavily touristed precincts. “It’s like the plague,” Lerer says. “It’s spreading so fast.”

Senate considering bill to add restrictions on legal advertising

By: John Breslin

Legislative moves to restrict legal broadcast advertising in California are now with the Senate, where a bill sits after passing in the Assembly.

AB 3217, which passed the Assembly 71-0, with seven non-votes, aims to curb the excesses of legal advertising by forcing attorneys to include notices that prescription drugs and medical devices can also be beneficial.

Physicians are backing the bill, which was amended, somewhat weakened, say supporters, as it made its way through the Assembly.It was read for the first time in the Senate May 17.

The bill states that an advertisement may be considered materially misleading if it understates the benefits of Federal Drug Administration-approved medications or medical devices, or overstates the risks.

Further, a commercial can be considered misleading if a material fact is omitted by the law firm.

It reads, “An advertisement may be considered materially misleading if it materially understates the benefits of a drug or device, or materially overstates the risk associated with the drug or device.” It is at second reading in the Senate.

Nationally, advertising by lawyers making claims about prescription drugs and medical devices are in the top two for spending.

Of nearly $1 billion spent on legal advertising each year, around $100 million goes toward commercials about prescription drugs and medical devices, according to a widely cited report by the U.S.Chamber of Commerce’s Institute for Legal Reform.

Theodore M. Mazer, president of the California Medical Association, said he and his organization support the bill on the grounds of patient safety.

The fear, which has circulated for some time, is that some patients may be so scared by the advertisements that they stop taking their medication, Dr. Mazer told the Northern California Record.

“They are selecting bad things without mentioning all the benefits,” said Mazer. “This is potentially harming people, modern day ambulance chasing.”

It is, and has been, an issue for doctors, and the advertising has gone too far, he added.

Mazer said he was disappointed at an amendment that removed the requirement that any legal advertisement include a warning that consumers should consult with their doctor before ceasing taking medication.

“But attorney firms have been put on notice that there will be consequences if these advertisements are not open, honest, and complete,” Mazer said.

“This is a liability issue for doctors if patients discontinue treatment; the lawyer is not liable.”

According to the FDA, ads for lawsuits involving prescription drugs have caused patients to stop taking their medications which has resulted in at least six deaths and more than 50 serious medical events, including strokes and blood clots. These statistics are for blood thinner drugs only.

The FDA states that as of the end of 2016, it had received 61 “adverse event reports,” in which a patient or multiple patients taking blood thinners had seen lawsuit ads naming Pradaxa, Xarelto or an ad using the term “bad drug.”

Supporters of the bill, including the Civil Justice Association of California (CJAC), welcomed its passage through the Assembly.

CJAC President John Doherty had described unfettered legal advertising as akin to the “wild west.”

“We have $1 billion worth of trial attorney advertising a year,” Doherty previously told the Northern California Record, “and this is not a situation where consumers are looking for attorneys, it is attorneys looking for clients.”

He added, “It is like the wild west, and they can make almost any claim.”

Echoing the concerns raised by the CMA, Doherty said the danger is that consumers, or patients, will watch these commercials and stop taking their medications or using medical devices.

The National Trial Lawyers Association also cited the Institute for Legal Reform when it issued its conclustion that  legal television advertising nationally has boomed in recent years, rising by 68 per cent in the eight years to 2016. It has doubled its share of the local spot television market during the same period, the NTLA stated.

The association pointed out that a number of law firms spend more than $10 million a year. Three, Akins Mears, Morgan and Morgan, and Pulaski & Middleman spent approximately $25 million.

“My hope is that the bill will lead those putting forth these advertisements to more carefully consider how they characterize both the upside and downside of drugs and medical devices,” sponsor Assemblymember Marc Berman, the sponsor of the bill, said prior to it passing the Assembly.

Woman loses suit alleging she thought Diet Dr Pepper would help her lose weight

By: Tomas Kassahun

In a ruling made on March 30, the U.S. District Court Northern District of California dismissed the case of a woman who alleged Diet Dr Pepper’s advertising made her believe the soft drink would help consumers lose weight.

“I agree with its contention that it is not plausible that a reasonable consumer would believe that drinking Diet Dr Pepper would assist in weight loss, beyond the fact that it has no calories,” Judge William H. Orrick wrote.

According to the March 30 court opinion, Shana Becerra believed that Diet Dr Pepper would help in weight loss or healthy weight management due to the use of the term “diet,” but she then learned that artificial sweeteners used in Diet Dr Pepper may cause weight gain.

Becerra filed the lawsuit on behalf of herself and a class of California consumers seeking damages and relief as well as an injunction to stop Dr Pepper/Seven Up Inc. from marketing its Diet Dr Pepper as “diet.”

Dr Pepper moved to transfer the case to the U.S. District Court for the Eastern District of Texas, but the California court said the case belongs in California because “it has a California plaintiff who was injured in California and chose this venue.”

The court, however, granted Dr Pepper’s request to dismiss the plaintiff’s second amended complaint entirely.

According to the opinion, Dr Pepper “uses the term ‘diet’ to market Diet Dr Pepper because the product is sweetened with a non-caloric artificial sweetener, aspartame, rather than sugar.”

Becerra alleged aspartame does not contain calories, “but scientific research demonstrates … that it is likely to cause weight gain.”

Becerra filed suit on behalf of herself and a California class, alleging false and misleading advertising in violation of California’s False Advertising Law, Consumers Legal Remedies Act and Unfair Competition Law, as well as breach of both express and implied warranties.

Dr Pepper said the claims should be dismissed because the claims are expressly preempted by Congress and the Food and Drug Administration approves the use of “diet” as part of a soft drink brand name, like “Diet Dr Pepper,” in the Nutrition Labeling and Education Act of 1990.

“The NLEA does not affirmatively approve of the use of ‘diet’ in soft drink brand names like ‘Diet Dr Pepper,’ but instead exempts it from certain labeling requirements to which other nutrition level and health-related claims are subjected,” Orrick wrote.

The opinion added that federal law prohibits state food labeling requirements that are not identical to federal requirements, but the Food, Drug and Cosmetic Act and California law contain identical prohibitions on false or misleading labeling.

“Given that California law is entirely consistent with and indeed identical to the NLEA, there is no preemption of plaintiff’s claims,” the opinion stated.

Dr Pepper also moved to dismiss plaintiff’s FAL, CLRA and UCL claims on the grounds that they are barred by California’s safe harbor doctrine, but the court said California’s safe harbor doctrine does not bar plaintiff’s claims.

“California’s safe harbor doctrine does not apply because no statute or regulation ‘affirmatively permits’ the use of the term ‘diet’ in soft drink labels,” the opinion stated. “Instead, the NLEA makes it ‘merely not unlawful’ to use the term ‘diet’ if certain conditions are met; compliance with a federal statute or regulation does not establish express authorization.”

Dr Pepper also said the claim of deception is invalid because “no reasonable consumer would be misled by the term ‘diet’ in the context of a diet soft drink, nor do the studies and articles referenced in the complaint establish that Diet Dr Pepper actually causes weight gain.”

The court agreed.

“A reasonable consumer knows that this is and always has been true of soft drinks generally – ‘diet’ soft drinks are simply lower calorie or calorie-free versions of their sugar-laden counterparts,” Orrick wrote. “A reasonable consumer would have no basis to infer anything more from Diet Dr Pepper’s label or advertising than that it is a calorie-free soft drink.”

In regards to the claims for breach of express and implied warranty, the court said “the term “diet” as it appears on Diet Dr Pepper’s label does not create an express warranty to consumers that the product will assist with weight loss.”

The judge denied the motion to transfer, granted the motion to dismiss and allowed Becerra to file an amended complaint within 20 days.

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