Consumer Protection Litigation

The firm is one of the most experienced law firms in the country in representing consumers in class action lawsuits against businesses and corporations. Class actions are lawsuits in which an individual, or a group of individuals, sues a business on behalf of all individuals who have similar claims against the business. By allowing numerous claims to be brought in one lawsuit, class actions provide redress for harms that might be too small to address through individual lawsuits. The firm typically represents consumers in class actions against corporations that have engaged in fraud, or produced defective and dangerous products.

CPM acted as co-lead national class counsel in predatory lending actions against some of the largest mortgage lenders across the country. In addition, CPM has ongoing cases and investigations, launched by individuals contacting the firm, into predatory lending and credit card practices. The abusive loan practices include excessive interest and loan costs and undisclosed fees.

RECENT CASES OF NOTE

23andMe
American Arbitration Association
This case is about the misleading advertisements that Defendant 23andMe, Inc. (the “Defendant” or “23andMe”) ran for its Saliva Collection Kit and Personal Genome Service (“PGS”) without approval from the U.S. Food and Drug Administration (“FDA”), thereby violating the Federal Food, Drug and Cosmetic Act (“FDC Act”) as well as numerous California statutes and common law.  Plaintiffs allege in their Complaint that 23andMe advertises that its product will provide “health reports on 254 conditions” and help you to “understand your genetic health risks.”  23andMe also boasts that the PGS has the ability to find details regarding your risk for diabetes, coronary heart disease, breast cancer, and other serious diseases and illnesses.  In reality, as alleged in the Complaint, 23andMe failed to conduct FDA required clinical and analytical studies on the supposed accuracy of the PGS and yet still marketed their product as a medical tool that delivers a diagnosis, rather than just a prediction of risk and an overview of genetic traits.  

Hanson v. Pro Solutions
USDC, Northern District of California
CPM represents a homeowner who was pursued by a debt collector, Pro Solutions, for unpaid Homeowners Association (HOA) dues.  The complaint alleges that Pro Solutions violated the Fair Debt Collection Practices Act and other law by attempting to collect fees and charges that were greater than those allowed by law, and engaged in other illegal debt collection activity.

Stoody-Broser v. Bank of America N.A.
USDC, Northern District of California
CPM represents a group of BOA trust customers whose trust investments were directed into higher cost BofA products.

HL Leasing Ponzi Scheme
Fresno County Superior Court
CPM obtained a jury verdict for $46.5 million against the top two senior officers of HL Leasing, Inc. for their involvement in a Ponzi scheme. The jury verdict came three days after the court had entered a directed verdict for $114 million against HL Leasing, Inc., Heritage Pacific Leasing and Air Fred, LLC for a Ponzi scheme in which over 1200 victims lost approximately $137 million. (Jury Verdict 2011)

Credit Counseling Industry Suit names Chase, Money Management International and Others
USDC Central District of California
CPM filed a consumer fraud case against JP Morgan Chase & Co., Chase Manhattan Bank USA, Money Management International (also known as Consumer Credit Counseling Service) and Money Management By Mail, Inc. for fraudulent “debt counseling” and debt collections in the subprime credit industry.  The cases settled for $11.4 million.

Anastasiya Komarova v. MBNA America Bank, N.A.; National Credit Acceptance, Inc.
San Francisco Superior Court
In a rare jury trial against a credit card collection agency, a San Francisco jury ruled in favor of a young woman who was the victim of an abusive campaign to force her to repay a debt she never incurred. Anne Marie Murphy and Justin T. Berger represented Anastasiya Komarova, who was awarded $600,000 from National Credit Acceptance, Inc. in 2008. Komarova had been subjected to nearly a year of hostile telephone calls to her work place and a spurious arbitration proceeding, all over a bogus credit card debt and despite the fact that she repeatedly told the agency she never had an account with the credit card company in question. In issuing its verdict, the San Francisco Superior Court jury described National Credit Acceptance's conduct as "outrageous." The verdict is believed to be one of the largest verdicts in the country by a sole plaintiff alleging credit abuse.

Northern Trust Bank of California
Los Angeles County Superior Court
CPM filed a class action on behalf of beneficiaries of fixed-fee trusts charged excess trustee fees over a 20 year period. The case returned tens of millions of dollars to consumers.

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