Daily Dicta: For Kirkland Team, This Trial Totally Sucked (But Not in the Way You Think
Advertisements are fleeting. Do you really want to go to trial four years down the road over a misleading claim? If you're vacuum cleaner maker Dyson Inc., the answer is yes.
June 13, 2018 at 02:03 PM
6 minute read
After all, ads are fleeting. Do you really want to fight over a 30-second spot four years down the road? If you're vacuum cleaner maker Dyson Inc., the answer is yes. On Monday, Dyson and its lawyers from Kirkland & Ellis led by Gregg LoCascio prevailed before a federal jury in Chicago, which found rival SharkNinja, represented by Jones Day, engaged in false advertising. The jury awarded $16.4 million in damages for ads that ran during a four-month period in 2014. Because the conduct was willful, enhanced damages and legal fees may still be added to the total. “Dyson prides themselves on their products and innovation,” LoCascio said. “They were willing to go to trial and publicly prove their case—and to spend the time and effort and money to let us do it.” Founded by British inventor Sir James Dyson—whom we can thank for developing the bag-less vacuum cleaner—Dyson entered the U.S. market in 2002 touting its “cyclone” technology, and quickly established itself as a market leader. According to the complaint, competitor Shark promoted its (allegedly inferior) vacuums “as being 'as good as' Dyson's vacuums, but at a lower price.” But when Shark in infomercials, TV and print ads and product packaging began claiming independent tests showed that its Shark Rotator Powered Lift-Away Vacuum “has more suction and deep-cleans carpets better than Dyson's best vacuum,” Dyson cried foul. Unbeknownst to the rest of the world, there are standards governing how vacuum cleaners are supposed to be tested. (That would be ASTM F608, in case you're wondering.) One rule is that the testers have to follow the instructions in the user's manual. According to Dyson, the Shark testers did not—at Shark's request, they allegedly used the “turbo” mode on all carpets, which produced misleading results. Shark “never had 'independent' testing to support its better carpet cleaning claim, because [the tester] was not 'free from outside control' in connection with the tests,” argued the Kirkland team, which included Robin McCue and Megan New. As the case headed to trial, LoCascio suggested that the court allow the jurors to ask questions—something which he'd never done before, but had long been interested in trying. Opposing counsel John Froemming of Jones Day and U.S. District Judge Gary Feinerman both agreed. Letting jurors submit written questions after witnesses testify is one of those ideas litigators have been talking about for 20 years as a way to modernize the jury system, but it's still not standard in most jurisdictions. LoCascio was enthusiastic about the experience, noting that the questions “provided a window into what [the jurors] were thinking” and what they didn't understand. It also kept the panel engaged throughout the 10-day trial. “Some of the best admissions and most telling testimony came from jury questions,” he said. |
Shout-Out: Cravath's $11B Save for Credit Suisse
A team from Cravath, Swaine & Moore led by partner Richard W. Clary scored a major win for Credit Suisse—and the rest of the banking industry—on Tuesday before the New York State Court of Appeals, in a decision that sharply curtails the statute of limitations for certain fraud cases. The allegations are familiar: The New York Attorney General sued Credit Suisse in 2012, alleging that the bank committed fraudulent and deceptive acts in connection with the creation and sale of residential mortgage-backed securities in 2006 and 2007. According to the AG's office, Credit Suisse led investors to believe that they had “carefully evaluated–and would continue to monitor” the quality of loans underlying the RMBS. Or not. In reality, many of the loans were flawed, and the shoddy securities helped trigger the 2008 financial crisis. The state sought $11 billion in damages. But did the AGs office wait too long to sue under New York's anti-fraud law, the Martin Act? The state argued that its suit is timely because the relevant statute of limitations is six years, but the Cravath team countered it's actually only three years. In a split opinion , New York's highest court ruled the claims are time-barred, siding with Cravath in ruling that the statute of limitations is three years. Oddly, this exact issue had not come up before. “Despite the scope and detail of the statutory scheme, there is no provision stating the applicable statute of limitations and, although the Martin Act is nearly a century old, we have never had occasion to consider the issue,” wrote Chief Judge Janet DiFiore. For more on the case, see coverage by my colleagues at The New York Law Journal: NY Court of Appeals Dismisses AG's Martin Act Claims Against Credit Suisse |
What I'm Reading
READ THE DECISION: Judge OKs AT&T-Time Warner's $85B Merger Take a bow, Daniel Petrocelli. Merrill Lynch to Pay $15.7 Million, Enhance Compliance After Misleading Customers “Merrill Lynch failed in its obligation to supervise traders who allegedly used their access to market information to take advantage of the bank's own customers.” Gorsuch, Embracing Originalism, Mustered No Support in Solo Dissent Poor Neil Gorsuch. Not even the court's most steadfast originalist, Justice Clarence Thomas, would join his dissent. Judge Forrest, Again, Orders Subpoena Compliance in Trump Fundraiser's Qatari Suit The suit is brought by Boies Schiller client Elliott Broidy, the GOP fundraiser best known for hiring Michael Cohen to pay off a Playboy Playmate. Lawyer's Conflict of Interest in Campus Sex Assault Case Leads to One-Year Suspension Things you can't do: Represent a group of sexual assault victims, and then represent a man that one of them accused of sexual assault in a defamation suit. South Florida Law Firm That Served Drinks to Alcoholic Employee Isn't Responsible for Her Death Wait what? The firm allegedly served alcohol during work hours and “encouraged employees to drink … to entice them to work additional hours and produce more work product.”
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllTrick or Treat? How an Office Halloween Party Convo Led to a Quinn Associate's Appellate Argument
Litigators of the Week: 5 Weeks Into Countrywide Trial, Quinn and Patterson Belknap Bring Home $1.84B Settlement for Ambac
Litigators of the Week: Hogan Lovells Flips Citi's Big Loss Over a Half a Billion Bucks in Mistakenly Wired Funds
Litigators of the Week: This Paul Hastings Duo Flipped the Conviction of a Trader Accused of Manipulating LIBOR
Trending Stories
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250