Jennifer A. Riley – Class Action Defense

May 19, 2026May 19, 2026 by Gerald L. Maatman, Jr.

California Supreme Court Rules That A Smash-And-Grab Hardware Theft, With No Access To Sensitive Records, Does Not Automatically Result In Multi-Million Or Billion Dollar Liability Under California Privacy Laws

By Gerald L. Maatman, Jr., Jennifer A. Riley, Ryan T. Garippo, and Jamar D. Davis

Duane Morris Takeaways: On May 14, 2026, in J.M. v. Illuminate Education, Inc., No. S286699, 2026 Cal. LEXIS 2657 (May 14, 2026), the California Supreme Court held that the California Court of Appeal decision to deny a demurrer was improper for an incorrect application of privacy laws. This decision emphasizes why defendants should confirm whether a plaintiff sufficiently pled a cause of action that aligns with the remedies that he or she seeks to recover. Further, the opinion clarifies that injury under the Confidentiality of Medical Information Act, Cal. Civ. Code § 56, et seq. (“CMIA”) depends on whether the company subjects medical information to a substantial risk of unauthorized use or access, not whether the unauthorized user actually views sensitive data.

Case Background

Illuminate Education, Inc. (“Illuminate”) is a technology company that helps educators determine the academic progression of an individual student, as well as their areas of potential improvement. The company uses data from individual students, including medical data, to make these determinations. Illuminate provided its services to the Ventura County Office of Education, under which Plaintiff (a minor) was a student. Plaintiff provided his medical information to the Ventura County Office of Education, which then provided Plaintiff’s health data to Illuminate.

In 2022, Illuminate became aware of suspicious activity related to its systems. Illuminate promptly initiated an investigation. The investigation confirmed an unauthorized user gained access to Illuminate’s records, including students’ medical information. Illuminate sent a notice to the guardians of the affected students, including Plaintiff, informing them of the scope of the potential disclosure. The notice made it clear that Illuminate found no evidence that the unauthorized user (or users) was successful in actual or attempted misuse of the data.

After the breach, Plaintiff alleges that he received several mail solicitations at an address provided to only the Ventura County Office of Education. As a result, Plaintiff filed a class action lawsuit alleging that Illuminate, as health care provider, negligently managed the students’ medical records under the CMIA and failed to expediently disclose the data breach to those affected under the Customer Records Act, Cal. Civ. Code § 1798.80, et seq. (“CRA”).

The trial court sustained Illuminate’s demurrer, without leave to amend, after Plaintiff twice failed to cure deficiencies in his pleadings. The Court of Appeal reversed that decision, holding that the trial court abused its discretion by sustaining the demurrer, because Plaintiff may have been able to cure the defects in his complaint if a different legal analysis was applied.

Following that decision, the California Supreme Court set out to resolve the disagreement.

The California Supreme Court’s Decision

The California Supreme Court’s analysis hinges on its statutory interpretation, involving the plain reading of the statutes and their legislative histories. Generally, this analysis fell into three distinct categories.

First, Justice Goodwin Liu, writing for the California Supreme Court, reasoned that Plaintiff failed to establish a valid claim under CMIA because he could not allege that Illuminate was a “provider of health care” under California Civil Code section 56.06. Relying on the text of section 56.06, the Supreme Court explained there are two ways for a business to qualify as a “provider of health care”: (1) a covered business maintains medical records to make the information available to either an individual or a health care provider upon request of the individual or provider; or (2) a covered business makes medical information available for an individual or a health care provider upon request to allow an individual to manage their information, or to help diagnose or treat the individual.

The Supreme Court also confirmed this interpretation by relying on the legislative history of the statutes. The Supreme Court observed that the legislative history confirmed that the legislature was concerned with situations where diabetics used a data platform to record glucose levels, or where people with hypertension used platforms to track their blood pressure. Relying on the legislative history, the Supreme Court observed that Plaintiff never alleged that Illuminate created a repository of student records that allowed the students to create their own records, or to access and share those records at their discretion. Instead, Plaintiff asserted that Illuminate stored medical information to help educators monitor, evaluate, and address student needs. As a result, Illuminate was not a “provider of health care,” because it did not make medical records available upon request of the individual or provider.

The Supreme Court also quickly addressed Plaintiff’s inability to satisfy the alternative method for determining whether Illuminate is a “provider of health care” because Plaintiff never alleged that Illuminate “provides medical information to health care providers or individuals for diagnosis and treatment of an individual.” Illuminate Education, 2026 Cal. LEXIS 2657, at *12. As a result, and after quickly dispensing with a few other arguments, the Supreme Court concluded that Illuminate was not a “provider of health care” under the CMIA.

Second, in addition to analyzing whether Illuminate was a “provider of health care,” the Supreme Court also determined whether Plaintiff had alleged sufficient injury to state a claim under the CMIA. The Supreme Court disagreed with Illuminate’s argument that injury requires an unauthorized person to view medical data, and ruled that a plaintiff alleges injury by claiming that the medical information was exposed to “a significant risk of unauthorized access or use.” Id. at *29.

The CMIA requires covered entities to “preserve[] the confidentiality” of medical information. Cal. Civ. Code § 56.101(a). The Supreme Court stated that “confidentiality” requires “keeping information private or secret” and clarified that this obligation applies regardless of whether an unauthorized party actually views the data. Illuminate Education, 2026 Cal. LEXIS 2657, at *26. (“[W]e reject the rule that no breach of confidentiality has occurred until medical information is actually viewed by an unauthorized person.”). Instead, the determination of whether a covered entity failed to preserve the confidentiality of data depends on a factor-based analysis that considers the “form, duration, and extent of the data breach, as well as any mitigation efforts by the covered entity.” Id. at *30. Thus, a plaintiff need not allege that his or her data was “actually viewed” by a third party, because that person is “unlikely to know what an unauthorized party has done with their data unless they suffer actual damage” and instead “[a]ll relevant circumstances must be considered” when determining whether confidentiality was breached. Id.

Third, for the CRA claim, the Supreme Court ruled that Plaintiff did not state a cause of action against Illuminate because Plaintiff was not a customer within the meaning of the statute. To bring suit under the CRA, a plaintiff must establish that he or she is a “customer” within the meaning of the statute. Boorstein v. CBS Interactive, Inc., 222 Cal. App. 4th 456, 467 (2013). A customer is “an individual who provides personal information to a business for the purpose of purchasing or leasing a product or obtaining a service from the business.” Cal. Civ. Code § 1798.80(c). Here, the Supreme Court found that Plaintiff never alleged that he provided any personal information to Illuminate to purchase or lease a product, or obtain a service from Illuminate. The Supreme Court observed that the Ventura County Office of Education purchased Illuminate’s services and provided the student information, not Plaintiff. Moreover, the Supreme Court disregarded Plaintiff’s argument that he was the “ultimate” customer of Illuminate because the CRA “does not authorize suit by all consumers or beneficiaries; it authorizes a civil action for an injured ’customer.’” Id. at *32.

In the end, the Supreme Court reversed the judgment of the Court of Appeal and remanded the matter for further proceedings.

Implications For Companies

This decision emphasizes the importance of ensuring that a plaintiff has sufficiently pled all causes of action asserted. When the CMIA or CRA are involved, companies must consider whether they are, in fact, a covered entity in order to determine whether they are subject to the statutes’ reach.

Further, to assert injury under the CMIA for a data breach claim, the analysis hinges on the risk of unauthorized use, not what an unauthorized user is able to do with the data. Thus, it is imperative that companies take all reasonable steps to retain the confidentiality of sensitive records, making an extra effort to ensure that hardware is secure.

For CRA claims, companies need to pay special attention to which entities solicit or contract for their services as attention to these details can potentially thwart a potential CRA claim.

In short, organizations that use such medical data, and operate in California, should take note of this decision because it impacts their defenses both positively and negatively going forward.

May 19, 2026May 19, 2026 by Gerald L. Maatman, Jr.

Announcing The New Duane Morris Higher Education Class Action Review – 2026!

By Gerald L. Maatman, Jr. and Jennifer A. Riley

Duane Morris Takeaway: We are proud to announce the release of the first-ever Higher Education Class Action Review – 2026, a comprehensive examination of the rapidly evolving world of litigation involving colleges and universities.

Class action lawsuits against colleges and universities have multiplied in both frequency and complexity over the last several decades. What began as isolated disputes involving admissions practices or employment discrimination has evolved into a broad spectrum of high-stakes litigation touching nearly every aspect of institutional operations. Institutions now confront class claims involving tuition and fee refunds, antitrust allegations, Title IX compliance, financial aid practices, student privacy, labor and employment disputes, disability accommodations, consumer protection statutes, data breaches, and the use of emerging educational technologies.

The COVID-19 pandemic accelerated many of these trends, producing an unprecedented wave of litigation that tested the contractual, fiduciary, and ethical obligations universities owe to students, faculty, and employees alike. At the same time, plaintiffs’ attorneys increasingly recognized that educational institutions possess the precise characteristics that make them attractive targets for aggregate litigation: substantial assets, expansive data systems, and policies affecting large populations.

As a result, colleges and universities now operate in an environment where a single institutional decision can trigger nationwide claims involving thousands of individuals and expose institutions to extraordinary legal and reputational risk.

Yet higher education remains unlike any other industry. Universities occupy a unique legal and cultural space shaped by academic freedom, shared governance, nonprofit missions, constitutional obligations, and public trust. Courts are often tasked with balancing these longstanding traditions against modern doctrines of consumer protection, employment law, privacy regulation, and mass tort procedure.

The Higher Education Class Action Review – 2026 explores the procedural frameworks governing class certification, the substantive legal theories most frequently asserted against educational institutions, and the strategic considerations that shape litigation outcomes. Designed for attorneys, university counsel, administrators, policymakers, academics, and risk management professionals, the book provides a detailed roadmap for understanding the rapidly expanding role of class action litigation in education.

The Higher Education Class Action Review – 2026 offers readers a timely and authoritative guide to one of the most consequential developments in modern education law. Get your eBook copy today!

Stay tuned to the Class Action Weekly Wire for more news and information about the Higher Education Class Action Review – 2026.

May 12, 2026May 12, 2026 by Gerald L. Maatman, Jr.

Announcing The First Edition Of The Insurance Class Action Review – 2026!

By Gerald L. Maatman, Jr. and Jennifer A. Riley

Duane Morris Takeaway: The rise of class action litigation has fundamentally transformed the modern legal landscape, and we are proud to announce the publication of the Insurance Class Action Review – 2026, a comprehensive new resource examining the evolving risks, trends, and defense strategies shaping class action litigation across the insurance sector.

The class action mechanism is unparalleled among procedural rules in terms of its impact on the American legal system. Its ability to exponentially expand the potential damages associated with a single claim has elevated class litigation into one of the most consequential forces confronting corporate defendants. In many instances, the mere threat of class certification can alter litigation strategy, settlement dynamics, and business operations on a massive scale.

For insurers, these risks have become increasingly complex and far-reaching. Class action litigation now touches nearly every aspect of the insurance business, from premium calculations and claims handling practices to cybersecurity breaches, artificial intelligence underwriting models, and climate-related coverage disputes. As insurers continue to collect and process enormous volumes of consumer data while operating under overlapping contractual, statutory, and regulatory frameworks, they face unprecedented exposure to collective litigation. The Insurance Class Action Review – 2026 was developed to help legal and business leaders navigate this rapidly changing environment. The book also examines how broader societal and economic forces are reshaping litigation risk. Digital transformation has dramatically increased the amount of sensitive consumer information maintained by insurers, while catastrophic weather events, inflationary pressures, and shifting healthcare and labor markets have intensified scrutiny of claims practices and pricing models.

Looking ahead, the future of insurance class action litigation will likely be shaped by forces extending well beyond traditional coverage disputes. Artificial intelligence, digital surveillance technologies, climate risk, ESG initiatives, and expanding state consumer protection regimes are already redefining the contours of collective litigation. As these developments continue, class actions will remain a central mechanism through which courts, consumers, regulators, and the insurance industry negotiate questions of fairness, transparency, and economic responsibility.

Because the stakes in class litigation are often existential, corporate defendants must approach these cases from a broad vantage point with thoughtful, proactive, and multi-faceted defense strategies. We developed the Insurance Class Action Review – 2026 eBook as a one-of-a-kind resource to help insurers, corporate counsel, risk professionals, and litigators better understand the rapidly evolving class action landscape and prepare for the challenges ahead. Get your copy today!

May 5, 2026May 5, 2026 by Gerald L. Maatman, Jr.

Introducing The Energy, Oil, And Gas Class Action Review – 2026: A Guide To Litigation In A Transforming Industry

By Gerald L. Maatman, Jr. and Jennifer A. Riley

Duane Morris Takeaway: The global energy landscape in 2025 stands at a moment of profound transformation. Oil and gas companies—long the backbone of industrial development and economic growth—now operate under intensifying scrutiny from regulators, investors, and an increasingly litigious public. As markets evolve and the long-term consequences of decades of extraction become more visible, class action litigation has emerged as one of the most powerful mechanisms for accountability and redress.

It is against this backdrop that Duane Morris has published the Energy, Oil, And Gas Class Action Review – 2026. It arrives as a timely and essential resource for understanding the rapidly shifting legal terrain. This new publication examines the complex and fast-developing world of energy class action litigation, offering a comprehensive look at how both plaintiffs and defendants are adapting their strategies. The industry now operates within a landscape shaped by scientific uncertainty, geopolitical volatility, and the accelerating transition to alternative energy sources.

The Energy, Oil, And Gas Class Action Review – 2026 captures these developments in a structured, accessible format and offers practitioners, in-house counsel, and industry stakeholders a clear understanding of where litigation risk is heading.

Download your copy today and stay ahead of the curve in in this industry.

Stay tuned to the Class Action Weekly Wire for more information on the Energy, Oil, And Gas Class Action Review – 2026 coming soon!

May 4, 2026 by Gerald L. Maatman, Jr.

Seventh Circuit Holds That Refusing To Register An Arbitration Agreement With The AAA Is Not A “Refusal To Arbitrate” Under The FAA

By Gerald L. Maatman, Jr., Jennifer A. Riley, and Hayley Ryan

Duane Morris Takeaways: On May 1, 2026, in Bernal et al. v. Kohl’s Corporation et al., No. 24-2806, 2026 WL 1193991 (7th Cir. May 1, 2026), the U.S. Court of Appeals for the Seventh Circuit affirmed a federal district court’s denial of a petition to compel arbitration, holding that the defendant’s refusal to register its arbitration agreement with the American Arbitration Association (“AAA”), which caused the AAA to close the arbitration proceedings, did not constitute a “refusal to arbitrate” under the Federal Arbitration Act (“FAA”). The Seventh Circuit reasoned that because the parties had delegated that procedural question to the AAA, the district court had no authority to compel arbitration.

This decision is a significant win for businesses facing mass arbitration campaigns, particularly where arbitration agreements incorporate the AAA’s Consumer Arbitration Rules. The decision offers a concrete mechanism to avoid the steep filing fees such campaigns generate.

Background

Plaintiffs purchased products through Kohl’s website in 2020 and 2022 and agreed to arbitration provisions that required all disputes to be resolved through binding arbitration before the AAA under its rules, including the AAA’s Consumer Arbitration Rules. Id. at * 1. The arbitration agreement also delegated to the arbitrator exclusive authority “to resolve any dispute related to the interpretation, applicability, enforceability or formation of” the arbitration agreement. Id.

In December 2022, Plaintiffs’ counsel initiated the pre-arbitration process by serving Kohnl’s with approximately 10,000 notices of dispute, followed by an additional 44,656 notices in April 2023. These claims alleged that Kohl’s marketing practices violated California’s consumer protection laws. Id. at *2. This is a classic mass arbitration strategy in which plaintiffs’ firms file thousands of individual demands to exploit mandatory per-claim filing fees paid by corporate defendants.

On May 22, 2023, while settlement discussions were ongoing, Kohl’s modified its terms and conditions to designate the National Arbitration and Mediation tribunal (rather than the AAA) as the arbitration forum for all claims. That same day, Plaintiffs filed formal individual demands with the AAA and paid all applicable filing fees. Id. Under AAA Consumer Arbitration Rule R-12, however, a business must register its arbitration clause and pay administrative fees for the AAA to administer consumer arbitrations. Kohl’s declined to do so. As a result, the AAA exercised its discretion to decline administration, closed the cases, and refunded Plaintiffs’ filing fees. Id. at *3.

Plaintiffs then filed suit in the U.S. District Court for the Central District of California, which was later transferred to the U.S. District Court for the Eastern District of Wisconsin pursuant to the forum selection clause, petitioning the court to compel Kohl’s to register its arbitration agreement with the AAA, pay all necessary filing fees, and proceed to arbitration. Id.

The District Court’s Ruling

The U.S. District Court for the Eastern District of Wisconsin denied the petition. Relying on Wallrich v. Samsung Elecs. Am., Inc., 106 F.4th 609 (7th Cir. 2024), the district court found that the parties had bargained for the AAA to apply and interpret its own Consumer Arbitration Rules. Id. at *3. When the AAA exercised that discretion by closing Plaintiffs’ cases upon Kohl’s non-registration, the court concluded it lacked authority to override that decision. Id.

Plaintiffs filed an interlocutory appeal, arguing that Kohl’s refusal to register its agreement constitutes a refusal to arbitration in violation of the Federal Arbitration Act (“FAA”). Id.

The Seventh Circuit’s Decision

The Seventh Circuit affirmed. Id. at *7. It held that the AAA’s exercise of discretion in closing Plaintiffs’ cases “flowed directly from the parties’ agreement granting AAA that power, leaving nothing for the district court to compel under the Federal Arbitration Act.” Id.

Under the FAA, a party seeking to compel arbitration must establish: (1) an enforceable written arbitration agreement; (2) a dispute falling within the scope of the agreement; and (3) a refusal to arbitrate. Id. at *4 (citing Wallrich, Inc., 106 F.4th at 617-18). The Seventh Circuit’s analysis centered on the third element, i.e. whether Kohl’s non-registration constituted a refusal to arbitrate. Id.

The Seventh Circuit characterized the AAA’s registration requirement as a “forum-specific procedural gateway” matter – the kind of matter parties implicitly delegate to the arbitration provider when they agree to arbitrate under its rules. Id. at *6 (citing Howsam v. Dean Witter Reynolds, Inc., 537 U.S. 79, 85–86 (2002)). Citing Howsam, 537 U.S. at 85, the Seventh Circuit reasoned that, absent contrary language in the arbitration agreement, parties who agree to AAA arbitration intend to withhold registration disputes from judicial review. Id. Because the AAA exercised its own discretion (consistent with the parties’ agreement) in closing the cases, there was “nothing for the district court to compel” under the FAA. Id. at *7.

The Seventh Circuit also relied on its prior decision in Wallrich, which held that a defendant’s failure to pay AAA fees, which resulted in termination of the arbitration, did not constitute a refusal to arbitrate where the outcome flowed from the parties’ agreed-upon procedures.

The Dissent

Judge Joshua P. Kolar dissented. In his view, Kohl’s non-registration “was a conscious step to depart from its agreement to arbitrate,” not a procedural question delegated to the AAA. Id. at *8. Judge Kolar warned that the majority’s reasoning stretches Wallrich’s holding too far and effectively converts “any bilateral agreement to arbitrate under AAA’s Consumer Rules into something of a unilateral option-to-arbitrate for business.” Id. at *9. Judge Kolar would have compelled Kohl’s to register so that the AAA could initiate proceedings. Id.

Implications for Companies

Bernal has immediate practical significance for companies facing mass arbitration exposure under AAA arbitration agreements. By simply declining to register its arbitration agreement with the AAA, a company can cause the AAA to close the proceedings without judicial recourse, at least in the Seventh Circuit. Businesses with AAA arbitration clauses in their consumer-facing agreements should assess whether this strategy is available and appropriate given their specific contractual language and forum.

That said, the dissent’s warning deserves attention. If other circuits adopt Judge Kolar’s reasoning, or if the AAA amends its rules in response, the window this decision opens may narrow. Companies should monitor developments carefully and consult counsel before relying on non-registration as a mass arbitration defense.

May 4, 2026May 4, 2026 by Gerald L. Maatman, Jr.

The Disorganization Defense: North Carolina Federal Judge Finds That Litigation Practices Of Plaintiffs’ Counsel Are Sufficient Grounds To Deny Class And Collective Certification

By Gerald L. Maatman, Jr., Jennifer A. Riley, Betty Luu, and Ryan T. Garippo

Duane Morris Takeaways: On April 22, 2026, in Ayers, v. GKN Driveline North America, Inc., No. 23-CV-00581, 2026 U.S. Dist. LEXIS 89819 (M.D.N.C. Apr. 22, 2026), Chief Judge Catherine Eagles of the U.S. District Court for the Middle District of North Carolina denied several motions to certify various claims as class and collective actions under the Fair Labor Standards Act (the “FLSA”) and the North Carolina Wage And Hour Act (the “NCWHA”). This decision underscores the responsibility of plaintiffs’ counsel to manage a case and present the court with a viable plan to bring their clients’ claims through trial. Otherwise, plaintiffs’ counsel runs the risk that the court will not certify these claims at all.

Case Background

This decision emerges in the context of a series of seven-year-long lawsuits against GKN Driveline North America, Inc. (“GKN”), the supplier of all-wheel-drive and other automotive components, for several major automotive manufactures. Plaintiffs James Ayers, John Carson, and Tameka Ferges (collectively, “Plaintiffs”) brought three separate wage-and-hour lawsuits, asserting claims under the FLSA and the NCWHA. Plaintiffs alleged that GKN required them to perform work off the clock, including before and after shifts, and during unpaid meal breaks.

In 2018, Plaintiffs filed an earlier case against GKN. In that case, Plaintiffs alleged GKN had two policies that resulted in underpayment of their wages: (1) a “time rounding” policy; and (2) an “automatic deduction” policy for meal breaks. The Court originally conditionally certified an FLSA collective action and a Rule 23 class action under both of those theories. But the court ultimately decertified both the FLSA collective and the Rule 23 class, finding that “individual issues would swamp any attempt to resolve the claims on the class or collective basis.” Id. at *5

After that decision, Plaintiffs – represented by the same counsel – refiled three similar lawsuits, which split the claims based on GKN’s plant locations, but otherwise left the theories mostly intact. Plaintiffs then filed renewed motions for class and collective certification in each of the three actions and again asked the Court to allow them to proceed on a representative basis. The Court’s opinion, for all three cases, followed.

The Court’s Decision

In her 28-page opinion, Chief Judge Eagles of the U.S. District Court for the Middle District of North Carolina denied Plaintiffs’ motions based largely on manageability grounds.

Chief Judge Eagles explained that “manageability principles are explicit in the requirements for a proposed Rule 23(b)(3) class” and that “wider case management concerns remain relevant in the collective context.” Id. at 13. Thus, it is generally a plaintiff’s attorney’s responsibility to present the court with an “organized presentation of claims, organized discovery and motions practice, and organized submission of evidence.” Id. But here, Plaintiff’s counsel failed to present a manageable class or collective in at least four different ways.

First, and perhaps most fundamentally, Chief Judge Eagles found that “plaintiffs propose no efficient method of resolving class-wide liability and individual damages across three different subclasses.” Id. at *18. Although Plaintiffs’ theory was premised on the notion that GKN had a “de facto off-the-clock” policy, Plaintiffs did not explain how they planned to “efficiently prove that each and every nonexempt employee was subject to that de facto policy and, even more crucially, how each class member was injured by this policy.” Id. at *18-19. Chief Judge Eagles found this omission troubling given that “plaintiffs have had years to think about these problems” and could not present the court with a manageable solution. Id. at *19. But Chief Judge Eagles did not stop there.

Second, having dispensed with the omissions in Plaintiffs’ theory of case manageability, Chief Judge Eagles turned to Plaintiffs’ counsel who she reasoned has “not demonstrated the organization, diligence, and mindset required to prosecute a complex case.” Id. at *21. Chief Judge Eagles explained that because she often had to prompt Plaintiffs’ counsel to prosecute the case, via supplemental briefing and discovery, she had lost confidence in their ability to manage the docket. This problem was compounded by Plaintiffs’ counsel’s filing of “several ‘emergency’ motions and amended ‘emergency motions’” which underscored their inability to “handle ordinary litigation problems.” Id. at *21-22.

Third, Chief Judge Eagles characterized Plaintiffs’ counsel’s Rule 23 analysis as the product of an unreliable “narrator of the record.” Id. at *22-23. She described Plaintiffs’ counsel’s submissions as “inaccurate at best and misrepresentations at worst.” Id. at *23. Similarly, for the FLSA claims, Chief Judge Eagles held that the “factual representations about the evidence in the plaintiffs’ briefing on an FLSA collective do not always hold up to scrutiny.” Id. at *31-32. These inaccuracies did not give her confidence that Plaintiffs’ counsel would be able to present a manageable case through trial.

Fourth, as to the FLSA claims, Chief Judge Eagles concluded by finding that “the plaintiffs have not proposed any plan, much less a workable plan, for the aggregation of all these claims.” Id. at *31. For example, Chief Judge Eagles highlighted that plaintiffs “have not explained how they will manage presenting evidence on all the different work activities at issue and [across] three different plants.” Id. She noted that – although it is often possible for plaintiffs’ counsel to create such theories — “[i]f they are unable to make the required showing after over seven years of litigation, there is no reason to think they will be able to do so by the time these cases are called for trial.” Id. at *33.

In short, Chief Judge Eagles explained that she “has certified several dozen class actions over the past fifteen years and is familiar with how to deal with disagreements between parties about managing and trying common and individual issues.” Id. at *26. “The problem here is not that management might be hard” but rather “that the plaintiffs proffer no plan for management . . . [a]nd the Court has no confidence that counsel will devise a workable plan.” Id. Thus, the motions were denied in their entirety.

Implications For Employers

Ayers presents two key lessons for corporate counsel grappling with how to manage these complex cases.

The first lesson is that the value of class and collective claims often can hinge on the identity and competency of opposing counsel. Where plaintiffs’ counsel is savvy, competent, and organized, the value of otherwise weaker claims can go up. In these cases, competent plaintiffs’ counsel can often be the difference in whether a class is certified, which is often the difference between millions of dollars of potential of exposure and not. Thus, corporate counsel should weigh the competency of his or her adversaries when assessing the risk that a putative class or collective action poses.

The second lesson is that hiring experienced defense counsel and developing an aggressive litigation strategy are critical for success in such cases. In Ayers, Chief Judge Eagles observed defense counsel’s strategy and explained “it has been clear for years that GKN intended to hold the plaintiffs to their burden of proof at every stage on every issue, as is their right.” Id. at *22, n.13. As a result, any delay by GKN ultimately did not negate the deficiencies by Plaintiffs’ counsel. It takes experienced counsel to toe this line and keep the focus on a plaintiff’s conduct. Corporate counsel should consider such experience when deciding who is best to represent their organizations.

April 28, 2026April 28, 2026 by Gerald L. Maatman, Jr.

Introducing the Transportation, Automotive, and Logistics Class Action Review – 2026!

By Gerald L. Maatman, Jr. and Jennifer A. Riley

Duane Morris Takeaway: In an era where the transportation industry underpins global commerce, from last-mile delivery networks to international logistics, legal risk has never been more complex or consequential. Class action litigation, in particular, has emerged as a powerful force shaping how transportation, automotive, and logistics companies operate, manage risk, and plan for the future. Against this backdrop, Duane Morris is proud to announce the first edition of the Transportation, Automotive, and Logistics Class Action Review.

This new publication is designed to provide a comprehensive, data-driven overview of class action litigation trends specific to the transportation sector. Building on the broader framework established by leading annual reviews of class action activity—which analyze hundreds of decisions and billions of dollars in settlements each year—the Review narrows the focus to one of the most dynamic and heavily litigated industries in the modern economy.

Class actions have long been recognized as high-stakes litigation, capable of reshaping business models and imposing significant financial exposure. By aggregating claims across large groups of plaintiffs, these cases can exponentially increase potential damages and create industry-wide ripple effects. Nowhere is this more evident than in transportation, where evolving workforce models, regulatory frameworks, and technological change continue to generate new legal challenges.

Recent litigation trends highlight the growing complexity of the space. For example, courts have wrestled with the scope of the “transportation worker exemption” under federal arbitration law, producing inconsistent rulings that affect employers ranging from trucking companies to warehouse operators. At the same time, issues involving wage-and-hour compliance, independent contractor classification, accessibility requirements, and data privacy are increasingly finding their way into class action complaints.

The Transportation, Automotive, and Logistics Class Action Review captures these developments in a structured, accessible format and offers practitioners, in-house counsel, and industry stakeholders a clear understanding of where litigation risk is heading.

Download your copy today and stay ahead of the curve in transportation, automotive, and logistics class action litigation.

Stay tuned to the Class Action Weekly Wire for more information on the Transportation, Automotive, and Logistics Class Action Review – 2026 coming soon!

April 21, 2026April 21, 2026 by Gerald L. Maatman, Jr.

Introducing The Healthcare Class Action Review – 2026: A Deep Dive Into Healthcare Litigation Trends

By Gerald L. Maatman, Jr. and Jennifer A. Riley

Duane Morris Takeaway: The healthcare industry continues to face a rapidly evolving class action landscape, and 2025 has proven to be a pivotal year. For that reason, we are pleased to announce the publication of our latest industry-focused eBook, the Healthcare Class Action Review – 2026. From data privacy disputes to billing transparency and pharmaceutical liability, class action litigation is reshaping how healthcare organizations operate and manage risk.

The Healthcare Class Action Review – 2026 is a comprehensive new eBook that examines the most significant developments in healthcare-related class actions over the past year. Healthcare organizations today operate at the intersection of regulation, innovation, and patient expectations. Class action litigation involving healthcare companies, including hospitals, healthcare providers, pharmaceutical companies, biotechnology firms, medical device and health technology companies, and diagnostic and testing companies has evolved from a peripheral phenomenon into a central feature of complex class action litigation. The Healthcare Class Action Review – 2026 offers a clear, structured analysis of these trends, helping legal professionals, compliance teams, and industry leaders stay informed and prepared.

As enforcement intensifies and plaintiffs’ strategies become more sophisticated, understanding class action risk is no longer optional—it’s essential. The Healthcare Class Action Review – 2026 equips readers with the knowledge needed to anticipate challenges and respond effectively in an increasingly complex legal environment.

Download your copy today and stay ahead of the curve in healthcare litigation.

Stay tuned to the Class Action Weekly Wire for more information on the Healthcare Class Action Review – 2026 coming soon!

April 14, 2026April 14, 2026 by Gerald L. Maatman, Jr.

The New Hospitality Class Action Review – 2026 Is Now Available!

By Gerald L. Maatman, Jr., Jennifer A. Riley, and Gregory Tsonis

Duane Morris Takeaway: We’re excited to officially announce the release of the all-new Hospitality Class Action Review – 2026, a new desk reference resource designed to help legal professionals and businesses better understand the evolving landscape of class action law this quickly evolving industry.

As the hospitality industry continues to evolve in a landscape shaped by shifting labor laws, consumer protection regulations, and data privacy concerns, class action litigation has become an increasingly significant area of exposure. This new publication offers a comprehensive, practical guide to understanding and managing these complex legal challenges.

Hotels, restaurants, and travel-related businesses face a growing wave of class actions—ranging from wage and hour disputes to hidden fee allegations and data breach claims. This book breaks down these trends and provides actionable insight into how organizations can proactively mitigate risk and respond effectively when litigation arises. The Duane Morris Class Action Team created this new resource offering clear, practical insights into the rules, trends, and key considerations that define class action practice in the hospitality industry. This is the second book in our new series focusing on industry-specific class action litigation, and dives deep into industry-specific procedures, recent case developments, and strategic considerations.

The Hospitality Class Action Review – 2026 is now available here.

Stay tuned to the Class Action Weekly Wire for more information on this new addition to the Duane Morris Class Action Review series.

April 8, 2026April 8, 2026 by Gerald L. Maatman, Jr.

Webinar Recap: Mid-Year Review Of EEOC Litigation And Strategy – Fiscal Year 2026

By Gerald L. Maatman, Jr., Jennifer A. Riley, and Daniel D. Spencer

Duane Morris Takeaways: We were honored to have so many loyal blog readers join us for our annual Mid-Year Review of EEOC Litigation And Strategy For Fiscal Year 2026 yesterday. The full video presentation, hosted by Jerry Maatman, Jennifer Riley, and Daniel Spencer, is below:

The EEOC’s fiscal year (“FY 2026”) spans from October 1, 2025, to September 30, 2026. Through the midway point, EEOC has filed 31 enforcement lawsuits, an uptick when compared to the 22 lawsuits filed in the first half of FY 2025, and the 14 lawsuits filed in the first half of FY 2024.. Traditionally, the second half of the EEOC’s fiscal year – and particularly in the final months of August and September – are when the majority of filings occur. However, an early analysis of the types of lawsuits filed, and the locations where they are filed, is informative for employers in terms of what to expect during the fiscal year-end lawsuit filing rush in September.

Cases Filed By EEOC District Offices

In addition to tracking the total number of filings, we closely monitor which of the EEOC’s 15 district offices are most active in terms of filing new cases over the course of the fiscal year. Some districts tend to be more aggressive than others, and some focus on different case filing priorities. The following chart shows the number of lawsuit filings by EEOC district office.

The most notable trend thus far is the 7 lawsuits filed by the Chicago District Office, followed by the 5 filings by the Philadelphia District Office, 3 filings by Indianapolis, 2 filings each for Atlanta, Birmingham, Houston, New York, Phoenix, and San Francisco, and one filing each for Charlotte, Los Angeles, Memphis, Miami, and St. Louis offices. Dallas has yet to see a lawsuit filing for FY 2026. By comparison, similarly in FY 2025 Chicago and Philadelphia led the pack in lawsuit filings, followed by Indianapolis, Phoenix, Houston, Atlanta, and Birmingham.

Analysis Of The Types Of Lawsuits Filed In First Half Of FY 2026

We also analyzed the types of lawsuits the EEOC filed throughout the first six months, in terms of the statutes and theories of discrimination alleged, in order to determine how the EEOC is shifting its strategic priorities. The chart below shows the EEOC filings by allegation type.

Title VII cases once again made up the majority of cases filed. They constituted 50% of all filings in FY 2026 (same as FY 2025, down from 58% of all filings in FY 2024, and significantly down from 68% of all filings in FY 2023). Overall, ADA cases made up the next most significant percentage of the EEOC’s FY 2026 filings for a total of 40%. This is up from 31% in FY 2025, yet similar to the 42% of filings in FY 2024. So far there has only been one filing under the ADEA in FY 2026, down from the uptick in ADEA filings in FY 2025. The EEOC filed 9 ADEA cases in FY 2025, compared to 6 age discrimination cases in FY 2024, 12 age discrimination cases in FY 2023, and 7 age discrimination cases in FY 2022. In the first six months of FY 2026, the EEOC filed 4 cases under the Pregnant Worker’s Fairness Act, on track compared to 6 filings in FY 2025 and 3 filings in FY 2024. So far, no cases filed under the Pregnancy Discrimination Act. Notably absent from FY 2026’s filings are cases brought under the Equal Pay Act and Genetic Information Nondiscrimination Act – two areas that the EEOC repeatedly has cited among its enforcement priorities prior to the second Trump Administration.

The graph set out below shows the number of lawsuits filed according to the statute under which they were filed (Title VII, Americans With Disabilities Act, Pregnancy Discrimination Act, Equal Pay Act, and Age Discrimination in Employment Act).

The industries impacted by EEOC-initiated litigation have also remained consistent in FY 2026. The chart below details that hospitality, healthcare, and retail employers have maintained their lead as corporate defendants in the last 18 months of EEOC-initiated litigation. In the first six months of FY 2026, two industries remained in the EEOC’s targets: Hospitality and Retail. On a percentage basis, Hospitality (Restaurants / Hotels / Entertainment) comprised 25.9% of filings, and Retail had 22.2% of filings. A key difference in FY 2025 compared to FY 2024 is Retail (22.2% of FY 2026 filings) overtaking Healthcare (18.5% of FY 2026 filings) and Manufacturing (7.4% of FY 2026 filings) as the next most targeted industry. Transportation & Logistics entered double digit enforcement activity, at 18.5% of the filings. The remaining industry with at least 2 filings is Construction, representing 7.4% of the filings.

Notable 2026 Lawsuit Filings

Disability Discrimination

In EEOC v. Schneider National, Inc., Case No. 26-CV-905 (D. Md. Mar. 4, 2026), the EEOC filed an action alleging that the defendant, Schneider National, Inc., a nationwide transportation and logistics company, violated the ADA when it refused to reasonably accommodate an applicant with PTSD by denying her request to bring her service dog to work, and withdrawing its job offer because of her disability. The EEOC asserted that the defendant extended a conditional offer of employment to the job candidate. However, next day, after learning that she had post-traumatic stress disorder and needed her service dog, the company withdrew her job offer pending further review. In response to Schneider’s request for additional information, the woman disclosed that her dog was certified as a service animal, trained to alleviate and prevent symptoms of PTSD, and had successfully accompanied her in the truck while she trained and obtained her Class A commercial driver’s license. The EEOC asserted that the defendant refused to allow her to drive with her service dog as an accommodation.

Religious Discrimination

In EEOC v. Blue Eagle Contracting, Inc., Case No. 26-CV-226 (D. Nev. Mar. 31, 2026), the EEOC filed an action against the defendant, a bulk mail delivery contractor for the U.S. Postal Service, alleging religious discrimination in violation of Title VII when it allegedly failed to return a Christian employee truck driver to a weekday shift so he could attend Sunday morning church services. According to the EEOC’s lawsuit, the defendant hired the driver, who informed supervisors of his religious obligations on Sundays stemming from his Christian faith. He was assigned a weekday delivery route, which he worked for several months until he volunteered on an emergency basis to fill a Sunday morning shift after a coworker unexpectedly resigned. The driver reminded his supervisors multiple times that he needed to attend church services on Sunday mornings and said he was only willing to work Sunday mornings until a replacement driver for the weekend shift was hired. The EEOC asserted that although the defendant hired a replacement, it continued to schedule the driver for Sunday shifts, while the replacement drove the weekday shift. The driver ultimately resigned from his position, and the EEOC alleged that the defendant’s failure to accommodate the drivers sincerely held religious beliefs ultimately compelled him to leave his job.

Race Discrimination

In EEOC v. Ourisman Cars Management Company, LLC, et al.), Case No. 26-CV-1233 (D. Md. Mar. 27, 2026), the EEOC brought an action alleging race discrimination after a finance manager at one of the defendants’ car dealerships repeatedly used racially offensive language toward Black salesmen in 2023. Employees reported the behavior to management multiple times, but the EEOC alleged the company did not take sufficient corrective action. The conduct continued, and two employees ultimately left their jobs. The EEOC asserted that the company’s conduct violated Title VII of the Civil Rights Act.

In EEOC v. Nike, Case No. 26-MC-128 (E.D. Mo. Feb 4, 2026), the EEOC filed a complaint to enforce a subpoena related to claims alleging race discrimination against white workers through DEI programs. The agency seeks to compel Nike’s compliance with a May 2024 subpoena then-commissioner Andrea Lucas issued pointing to workforce representation quotas.

Release Of Enforcement Statistics

On April 6, 2026, the EEOC published its FY 2027 Agency Performance Plan (“APP”) and FY 2025 Agency Performance Report (“APR”). The EEOC reported $660 million recovered through administrative enforcement and litigation for 17,680 alleged victims of discrimination. It also reported $528 million recovered through pre-litigation enforcement process (the highest amount in the agency’s 60-year history), $104.6 million for federal employees and applicants, $55 million recovered as a result of systemic investigations, $27 million through resolution of 120 merits lawsuits, $10.8 million obtained through the resolution of 13 systemic lawsuits, and six new systemic lawsuit filings.

Takeaways For Employers

We anticipate that the EEOC will continue to aggressively pursue its strategic priority areas in FY 2026. There is no reason to believe that the annual “September surge” is not coming, in what could be another precedent-setting year. We will continue to monitor EEOC litigation activity on a daily basis, and look forward to providing our blog readers with up-to-date analysis on the latest developments.