Claims about company’s lax data security, which led to breach that impacted over 133 million guest records, moving forward on behalf of nearly 45 million consumers as a certified class
GREENBELT, Md.– A federal judge in Maryland has granted class certification in a data breach impacting over 133 million American consumers against hotel chain Marriott (NASDAQ: MAR) and its data security vendor Accenture (NYSE: ACN), clearing the way for the litigation to move forward. The Court will allow the case to proceed as a class action on behalf of the first group of claimants the parties selected – an initial group of approximately 45 million consumers in California, Connecticut, Florida, Georgia, Maryland, and New York. The lawsuit stems from a data breach Marriott discovered in 2018 after it acquired Starwood, in which, by its own admission, 133.7 million guest records of Starwood customers were compromised. Marriott acknowledged in 2019 that the records included approximately 5.25 million unencrypted passport numbers and 20.3 million encrypted passport numbers, among other sensitive personal information regarding hotel stays.
In granting class certification, Judge Paul Grimm of the U.S. District Court for the Southern District of Maryland issued a 70-plus page opinion that made clear he was certifying the case for potential trial, rather than for a pending settlement (as occurs in most other data breach cases). The opinion allows the plaintiffs to seek damages related to overpayment for hotel rooms, as well as statutory and nominal damages. The Court also found that consumers might be able to recover damages for the inherent value of their personal information stolen during the breach based upon Marriott’s own valuation of that same data.
DiCello Levitt Gutzler partner Amy Keller, Hausfeld partner James Pizzirusso, and Cohen Milstein Sellers & Toll partner Andrew N. Friedman are Co-Lead Plaintiffs’ counsel in the case. They issued the following joint statement:
“After three years of hard-fought litigation, the Court issued a well-reasoned opinion which provides a path forward to hold Marriott accountable for its egregious, four-year data breach. While many companies do the right thing and work to help their customers after a data breach, Marriott and Accenture chose to deny responsibility, vigorously attempting to convince the Court that they cannot be held liable to anyone impacted by the breach. We look forward to presenting our evidence to a jury.
The valuation of personal information is still fairly new territory for many Courts, and this is the first case to reach class certification on the issue. While the Court precluded our expert on this point, it also recognized that we might have the ability to introduce the value that Marriott itself derived from its customers’ data at trial as a component of damages the class sustained. The Court also accepted our experts’ damages methodology that Marriott and Starwood guests overpaid when making hotel reservations because of substandard security. Finally, the Court found that we could seek to recover nominal damages and statutory damages in some states. Marriott and Accenture are facing significant liability here, and we look forward to holding them to their legal and moral responsibilities.”
Filed in January 2018, the lawsuit alleges that Starwood, and later Marriott, took more than four years to discover the long-running data breach. Marriott became the world’s largest hotel chain when it acquired Starwood that same year.
Beginning in 2014 or earlier, and continuing through November 2018, hackers exploited vulnerabilities in Starwood’s network to access the guest reservation system and steal customer data. Marriott discovered the breach on September 8, 2018 but failed to publicly disclose it until nearly three months later, on November 30, 2018, when it admitted that there had been unauthorized access to the Starwood guest reservation database. This database contained personal customer information, including names, mailing addresses, phone numbers, email addresses, passport numbers, Starwood Preferred Guest account information, date of birth, gender, arrival and departure information, reservation dates, and communication preferences. For some customers, the information also included payment card numbers and payment card expiration dates.
The case is In re: Marriott International, Inc. Customer Data Security Breach Litigation, MDL No. 19-md-2879 in the U.S. District Court for the Southern District of Maryland. See the Court’s opinion.
About DiCello Levitt Gutzler
At DiCello Levitt Gutzler, we’re dedicated to achieving justice for our clients through class action, business-to-business, public client, whistleblower, personal injury, and mass tort litigation. Our lawyers are highly respected for their ability to litigate and win cases – whether by trial, settlement, or otherwise—for people who have suffered harm, global corporations that have sustained significant economic losses, and public clients seeking to protect their citizens’ rights and interests. Every day, we put our reputations—and our capital—on the line for our clients.
About Hausfeld
Hausfeld is a leading litigation law firm with offices in Boston, New York, Philadelphia, San Francisco, and Washington, D.C., as well as in the UK and continental Europe. In the last decade, Hausfeld has won landmark trials, negotiated complex settlements, and recovered billions of dollars for clients both in and out of court. Hausfeld lawyers consistently apply forward-thinking ideas and creative solutions to the most vexing global legal challenges faced by clients. As a result, the firm’s litigators have developed numerous innovative legal theories that have expanded the quality and availability of legal recourse for claimants around the globe.
About Cohen Milstein Sellers & Toll PLLC
Cohen Milstein is a premier, nationally renowned plaintiff-side law firm. With over 100 attorneys in six offices in Washington, D.C., Chicago, Ill., New York, N.Y., Palm Beach Gardens, Fla., Philadelphia, Pa. and Raleigh, N.C., the firm engages in groundbreaking and high-stakes class action litigation concerning social and economic justice. Through the courts, we have helped our clients hold bad-actors accountable, while establishing legal precedent that may have a lasting and positive impact for future generations. These efforts have led us to be recognized by the industry as: “The most effective law firm in the United States for lawsuits with a strong social and political component” by Inside Counsel Magazine and a “Class-Action Powerhouse” by Forbes.
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Children as Young as 10 Years Old Forced to do Labor in Service of Scientology Instead of Receiving Basic Schooling; Isolated from Parents and Endured Verbal Abuse for Minor or Fabricated Transgressions
Plaintiffs Were Compelled to Join the Crew on Scientology’s “Freewinds” Ship, Forced to Work Under Extreme Conditions With No Way Out
TAMPA, FLORIDA – Three individuals who were raised in Scientology and forced to work in its service from childhood today filed a groundbreaking lawsuit against Scientology’s leader, David Miscavige, and five Scientology-affiliated corporations, alleging violation of the Trafficking Victims Protection Reauthorization Act (TVPRA). The filing details the horrific mistreatment the plaintiffs endured under the control of Scientology, including forced labor, verbal and physical abuse, intimidation and coercion at Scientology’s primary hub of activity in Clearwater, Florida and for more than a decade on board Scientology’s cruise vessel, the Freewinds.
The plaintiffs allege that, beginning in childhood, they were required to commit to a lifetime of service to Scientology, enduring regular verbal abuse, crowded living conditions and sleep deprivation. Children were repeatedly told that those who attempted to leave Scientology could suffer awful fates, including death.
Beginning as young as 10, the plaintiffs were forced to work in Scientology’s Cadet Org and Sea Org, providing unpaid and extremely low-paid labor, including landscaping, food service and janitorial work. The plaintiffs allege that Scientology employs numerous psychologically devastating tactics to achieve coercive control over members, including lengthy interrogation sessions in which individuals who have been abused are compelled to take full blame for those abuses and agree to make amends to their abusers.
“For years, Scientology has exploited defenseless children and groomed them for a lifetime of servitude. Our clients were subjected to systematic indoctrination and manipulation that normalizes extremely abusive treatment. Throughout their formative years and into adulthood, they were forced to perform labor under unimaginable conditions,” said Neil L. Glazer, an attorney for the plaintiffs and shareholder at the law firm of Kohn, Swift & Graf, P.C. “Their lives have been forever altered by this mistreatment.”
“Growing up in Scientology, being separated from my family and subjected to severe verbal and physical abuse has scarred me in ways that I am still working through and uncovering. Sometimes it feels like it will never end. All the while, Scientology continues to abuse and exploit its members, including young children, and does so with virtually unchecked power,” said plaintiff Gawain Baxter. “To this day, there are completely defenseless minors being mistreated by Scientology leadership. Just as I was, they are isolated from family and have no way to protect themselves. Scientology must be held accountable for the human rights abuses and trauma it has inflicted without a shred of remorse.”
Plaintiff Gawain Baxter was required at age six to sign a contract pledging to serve Scientology, and by extension David Miscavige, for one billion years. Beginning at age 10, he alleges he was forced to attend expensive indoctrination sessions, the costs of which he was continually told were recorded as a mounting financial debt he would have to repay if he ever left the Sea Org.
As a teenager, Gawain Baxter was allegedly transported from Clearwater to Curacao and compelled to board the Freewinds, where his identification documents were immediately confiscated. There, he was forced to provide manual labor with few breaks and little sleep. Tasks were often incredibly dangerous, such as when he was ordered to squeeze inside fuel tanks to clean them from the inside, without a respirator to protect him from the fumes. When the Freewinds underwent extensive renovations, he worked more than 18 hours per day and was exposed to blue asbestos and concrete dust. He was not provided any protective equipment and soon became ill, coughing up blood.
“Scientology cannot be allowed to continue exploiting the labor of its members and inflicting emotional and physical abuse without facing justice,” said Ted Leopold, an attorney for the plaintiffs at Cohen Milstein Sellers & Toll PLLC. “Our hope is that this lawsuit will assist the plaintiffs in holding Miscavige and Scientology accountable for this egregious mistreatment.”
The second Plaintiff, Laura Baxter, grew up in Scientology in Germany. At age seven, her mother signed her up to take Scientology courses. By 15, she worked as a staff member for Scientology in Stuttgart, which required her to undergo frequent “auditing” and “security checks.” Her mother eventually signed over guardianship to a senior Scientology officer, after which she was transported to the Freewinds. Her identifying documents were also confiscated and she was forced to do labor and endure punishment for minor or fabricated transgressions.
In 2004, a prominent Scientologist celebrated their birthday aboard the Freewinds. At the celebration, the plaintiff was allegedly falsely accused of monopolizing their attention and, as punishment, was confined to the hot engine room for three days and was only allowed to leave for a few minutes at a time for meals and a few hours of sleep in her room. During her time on the Freewinds she continued to endure further abuse, such as being forced to confess to alleged crimes against Scientology, having her meager pay withheld, being confined and under constant surveillance.
Gawain and Laura Baxter met aboard the Freewinds and ultimately married. Eager to escape the Sea Org, they made the decision to become pregnant, which would give them the opportunity to leave due to a policy change following unfavorable news coverage of the Sea Org’s forced abortion policy. When Laura became pregnant, the two were offered a choice to terminate the pregnancy or leave the Sea Org. When they declined to terminate the pregnancy, they were isolated from the ship’s staff, put under full-time surveillance and required to undergo ethics handlings and security checks as punishment. Gawain was also interrogated and berated for not forcing Laura to terminate her pregnancy. After weeks of punishments and isolation when it became clear that they were not going to comply, Gawain and Laura were permitted to leave the ship.
To this day, they are traumatized as a result of what they endured since childhood. They regularly receive intimidating phone calls from Scientologists as a reminder that they continue to be monitored.
The third plaintiff, Valeska Paris, was subjected to Scientology indoctrination beginning when she was just four years old. During this training, which continued throughout her childhood and adolescence, she was regularly interrogated by adults who asked graphic questions about sexual acts for hours at a time. When she was six years old, Valeska’s parents deposited her with the Cadet Org in England, where she was provided minimal schooling and was forced to work for hours every day.
When she was 14 years old, Valeska was pressured into going to work in the Sea Org at Scientology’s “Flag Base” in Clearwater, Florida. There, among other things, she was punished for reporting having been sexually assaulted by a senior Scientology officer. After several years of mistreatment, Scientology’s leader, David Miscavige ordered her to be put to work on the Freewinds, where she toiled under extreme conditions for many years.
“Because of the horrors I experienced at the hands of Scientology from childhood and throughout my adolescence, I still have nightmares. Scientology is a system that is designed to perpetuate fear, and I continue to struggle with the trauma. No person – child or adult – should have to go through the daily abuse and manipulation I faced. Though bringing this lawsuit is a great personal risk, I could not stand by while countless children continue to be trained for a lifetime of slavery and abuse,” said plaintiff Valeska Paris.
TVPRA is a 2008 law that strengthened the federal trafficking laws established in the Trafficking Victims Protection Act (TVPA) of 2000.
The lawsuit also names Church of Scientology International Religious Technology Center (RTC), International Association of Scientologists Administrations (IASA), Church of Scientology Flag Service Organization, Inc., and Church of Scientology Flag Ship Service Organization, Inc. as defendants.
The lawsuit has been filed on behalf of the three plaintiffs, who are represented by Neil L. Glazer of Kohn, Swift & Graf, P.C., Ted Leopold of national plaintiff firm Cohen Milstein Sellers & Toll, Gregory Hansel of Preti Flaherty, and Warren A. Zimmerman.
Media Contact: Berlin Rosen / cohenmilstein@berlinrosen.com
About Cohen Milstein Sellers & Toll PLLC
Cohen Milstein Sellers & Toll PLLC is recognized as one of the premier law firms in the country, handling complex plaintiff-side litigation. With more than 100 attorneys, Cohen Milstein has offices in Washington, D.C., Chicago, Ill., New York, N.Y., Palm Beach Gardens, Fla., Philadelphia, Pa. and Raleigh, N.C. For additional information, call 202.408.4600.
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Engineering Firms Lockwood, Andrews & Newnam and Veolia Allegedly Failed to Identify Corroding Pipes as Thousands of Children and Families Grew Sicker
Environmental Protection Agency Failed to Notify Residents of Significant Lead Poisoning Risk
FLINT, MI – On the eighth anniversary of the water supply tragedy that resulted in the deadly Flint Water Crisis, attorneys representing more than 5,000 Flint residents in their class action lawsuit against Veolia North America (Veolia) and Lockwood, Andrews & Newnam (LAN), as well as a parallel lawsuit against the United States Environmental Protection Agency (EPA), demanded a full measure of justice.
“The residents of Flint have endured unimaginable pain, loss and illness as a result of the reckless negligence of the EPA and the two engineering firms that advised the City of Flint, Veolia and Lockwood, Andrews & Newnam,” said Ted Leopold, court-appointed co-lead counsel and partner at Cohen Milstein Sellers & Toll. “Though we have made important progress toward holding accountable the bad actors that enabled this public health disaster, our fight to win full justice for the thousands of children and families whose lives have been irreparably damaged continues.”
“We believe a Michigan Jury will find that the evidence proves that the two engineering companies acted negligently and the EPA acted recklessly, thus endangering the lives of the children and adults of Flint,” said Michael Pitt, court-appointed co-lead counsel and founding partner at Pitt McGehee Palmer & Rivers. “Our work will not end until these responsible parties are brought to justice and made to pay for the harm they caused.”
In 2014, the City of Flint hired LAN and Veolia to advise on the City’s decision to switch its water supply from the highly contaminated Flint River. As citizens began raising concerns about the water’s smell, color and taste, and even after a deadly outbreak of Legionnaires’ disease, the engineering companies failed to take even basic steps required of professional engineers, and failed to identify corroding pipes as the root cause.
Instead, both companies recommended that the City double the water system’s dose of ferric chloride, a highly acidic chemical, which only compounded the water pipes’ corrosion issues. These negligent actions cause irreparable damage to residents’ health, including and especially to young children who must forever live with the damage of lead poisoning. Additionally, pipes in homes throughout Flint have been permanently corroded, making it nearly impossible for families to leverage or sell their homes.
The EPA, which was aware of these dangerous issues and their long-term impacts on health, never warned Flint residents, even as the public health crisis quickly escalated.
In 2020, plaintiffs in the Flint class action lawsuit won a landmark $626.25 million settlement against multiple government defendants, including the State of Michigan, Michigan Department of Environmental Quality and former Governor Rick Snyder.
Media Contact: Berlin Rosen / cohenmilstein@berlinrosen.com
About Cohen Milstein Sellers & Toll PLLC
Cohen Milstein Sellers & Toll PLLC is recognized as one of the premier law firms in the country, handling complex plaintiff-side litigation. With more than 100 attorneys, Cohen Milstein has offices in Washington, D.C., Chicago, Ill., New York, N.Y., Palm Beach Gardens, Fla., Philadelphia, Pa. and Raleigh, N.C. For additional information, visit www.cohenmilstein.com or call 202.408.4600.
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RALEIGH – Jay Chaudhuri has been selected for the Core Rodel Fellowship in Public Leadership, joining a bipartisan cohort of 24 state and local-level elected officials from across the United States. In addition, he has been selected for the E Pluribus Unum Fellowship, joining a cohort of 10 Southern state legislators.
The Rodel fellowship defines its purpose as to “examine new leadership approaches, deepen self-criticism and self-awareness, and learn how to work together across party lines to identify shared values and find solutions to common problems.” The program exists within the Rodel Leadership Institute, an independent nonprofit with the mission to strengthen democracy and public leadership in the United States.
The Unum fellowship will focus on advancing racial and economic equity in the South through sustainable change and collaboration. The fellowship is hosted by E Pluribus Unum, a nonprofit founded by former New Orleans Mayor Mitch Landrieu.
“I am honored to be selected for both fellowships,” said Chaudhuri. “I’m excited to work together with other state and local leaders to focus on the issues of race and democracy – two important issues that we must address together as a country.”
For more information about the E Pluribus Unum Fellowship, visit Unum Fund.
FOR IMMEDIATE RELEASE
Flint Residents Will Start to Receive Financial Relief from the $626 Million Settlement
FLINT, MI. – Interim Co-lead Class Counsel in the Flint water crisis litigation announced today that the United States District Court for the Eastern District of Michigan has granted final approval for the landmark $626 million partial settlement resulting from the class action and individual lawsuits brought on behalf of Flint residents. The ruling means that Flint residents can now begin to receive financial relief from the settlement. 80 percent of the funds will go to those who were under the age of 18 at the time of the crisis, with a large majority of that amount to be paid for claims of children aged 6 and younger. The remaining funds will go to special education services in Genesee County, adults, business owners and property owners for property damage.
“This is a historic and momentous day for the residents of Flint, who will finally begin to see justice served. None of this would have been possible without the tireless advocacy from residents, who never gave up the fight. Though we can never undo what has occurred, this settlement makes clear that those who egregiously violate the law and harm their communities will be held accountable,” Ted Leopold, court-appointed co-lead counsel and Partner at Cohen Milstein Sellers & Toll.
In August, the court entered an order granting Class Certification on liability claims in the ongoing litigation against private engineering firms Lockwood, Andrews & Newman (LAN) and Veolia, LLC; Veolia, Inc, and Veolia Water (VNA). Each allegedly failed to give appropriate professional advice, greatly adding to the widespread lead contamination of the water that flowed into class members homes and businesses. Separate litigation against the U.S. Environmental Protection Agency will also continue.
The parties to the settlement include the State of Michigan, the Michigan Department of Environmental Quality (DEQ) all individual governmental defendants including former Governor Rick Snyder, the City of Flint, McLaren Regional Medical Center and Rowe Professional Services Co.
Claimants presenting the same profile of injuries will receive the same awards without regard to whether they are represented by an attorney or law firm. The Special Master and Plaintiffs’ lawyers will help supervise this part of the process.
About Cohen Milstein Sellers & Toll
Cohen Milstein Sellers & Toll PLLC is recognized as one of the premier law firms in the country handling major, complex plaintiff-side litigation. With more than 100 attorneys, Cohen Milstein has offices in Washington, D.C., Chicago, Ill., New York, N.Y., Palm Beach Gardens, Fla., Philadelphia, Pa. and Raleigh, N.C.
About Pitt McGehee Palmer & Rivers
Located in Royal Oak, Pitt McGehee Palmer & Rivers PC is Michigan’s largest law firm specializing in civil rights litigation exclusively on behalf of the victims of governmental, corporate and workplace abuse Its. attorneys represent clients in a broad range of actions, including sexual harassment, wrongful discharge, whistleblower issues and discrimination based on age, gender, disability, race, religion and national origin.
Park 7 tenants have experienced prolonged racial and economic mistreatment
from the building owners and property management company
FOR IMMEDIATE RELEASE
WASHINGTON – The Superior Court of the District of Columbia has approved a first-of-its kind tenant right to organize consent agreement between Park 7 Tenant Union and tenants of Park 7 Apartments, an affordable housing apartment building located in D.C.’s Ward 7 comprised mainly of Black residents, and the property’s owner, Park 7 Residential LP, and its management company, 3801 Management LP. The agreement applies the District’s Tenants’ Right to Organize Law and solidifies Park 7 tenants’ unhindered right to organize in order to address the conditions of the property that have been unsafe and unsanitary for years. In addition, the agreement provides procedural steps that require management to respond to and participate in meetings to address and resolve Park 7 Tenant Union concerns.
The original suit claims Defendants have waged a years-long obstruction campaign against tenants who have actively organized to protest the deteriorating conditions in the Park 7 Apartment building. Since opening in 2014, Park 7 has lapsed into deterioration, including hallways piled with garbage, chronic leaks and water damage, pervasive mold, security hazards, inoperable appliances, and widespread pest infestations.
The right of tenants to organize and collectively address problems in their buildings is particularly acute as the District of Columbia faces the multiple crises of expiring eviction moratoria, increasing displacement, and patterns of gentrification that are exacerbating racial segregation in housing. It is one of many important tools to protect the power of tenants to live in safe, decent and affordable housing of choice.
“This agreement will help tenants stand on more even footing with the management and allow us to negotiate for better living conditions without interference or fear of retaliation,” said Tara Maxwell, President of the Park 7 Tenant Union.
“This court-enforceable consent agreement will cement the right of Park 7 tenants to collectively organize to push the owner and property manager to address unsafe and unsanitary conditions tenants have been living with for years. The agreement protects tenants’ right to meet without landlord interference, as well as requires the owner and property manager to confer with and respond to tenant representatives’ concerns on a regular basis. This consent decree is the first court order applying and enforcing the DC Tenants’ Right to Organize statute,” said Brook Hill, counsel at the Washington Lawyers’ Committee for Civil Rights and Urban Affairs.
“Tenant rights laws in Washington, D.C. are clear: residents have a right to freely organize,” said Brian Corman, the Cohen Milstein attorney handling the case. “We are pleased the court agrees and approved this groundbreaking consent agreement that ensures Park 7 tenants can safely organize, meet, and distribute literature in order to advocate for improved building conditions and hold management accountable. This consent decree will serve as a model for other tenants in the District of Columbia and provide a pathway for advocacy and organizing without the threat of retaliation.”
The plaintiffs are represented by the Washington Lawyers’ Committee for Civil Rights and Urban Affairs and Cohen Milstein Sellers & Toll PLLC.
See the consent agreement.
See the original filed complaint.
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ABOUT THE WASHINGTON LAWYERS’ COMMITTEE: Founded in 1968, The Washington Lawyers’ Committee for Civil Rights and Urban Affairs works to create legal, economic and social equity through litigation, client and public education and public policy advocacy. While we fight discrimination against all people, we recognize the central role that current and historic race discrimination plays in sustaining inequity and recognize the critical importance of identifying, exposing, combatting and dismantling the systems that sustain racial oppression. For more information, call 202.319.1000. Follow us on Twitter at @WashLaw4CR.
ABOUT COHEN MILSTEIN SELLERS & TOLL PLLC: Cohen Milstein Sellers & Toll PLLC is a national leader in plaintiff class action lawsuits and civil rights-related litigation. As one of the premier plaintiffs in the United States, Cohen Milstein has more than 100 attorneys in offices in Washington, D.C., Chicago, IL, New York, NY, Philadelphia, PA, Palm Beach Gardens, FL, and Raleigh, NC. For more information call 202.408.4600.
PRESS CONTACT:
Gregg Kelley, Washington Lawyers’ Committee for Civil Rights and Urban Affairs Gregg_Kelley@washlaw.org, 202-319-1070
Representatives of Nutrition & Education International Met with Pentagon Officials to Discuss the U.S. Drone Strike that Killed Their Employee Zemari Ahmadi and Nine of His Family Members in Kabul
NEW YORK — Nutrition & Education International (NEI) had a meeting with the U.S. Department of Defense yesterday to discuss what the government can do to make amends after a U.S. drone strike killed aid worker Zemari Ahmadi and nine members of his family in Kabul on Aug. 29, 2021. Mr. Ahmadi was one of NEI’s first six Afghan employees, a key leader on its staff, and held the position of technical engineer with NEI. The American Civil Liberties Union and Cohen Milstein are now representing NEI.
“Zemari was like a son to me, and I join his family in grieving his loss, the deaths of his three sons, and six other family members,” said Dr. Steven Kwon, President & CEO of Nutrition & Education International. “When Zemari started with NEI in 2006, he was a handyman who had never attended school. But he was extraordinarily smart, a gifted engineer, and he became an essential part of our operations and successes. Nothing can bring Zemari or these other precious people back, but we appreciate the opportunity to discuss these devastating losses in detail with senior Defense Department officials. We hope they will act urgently to get surviving family members and impacted NEI employees to safety and to help them to rebuild their lives.”
NEI’s primary concern is for the safety and welfare of Mr. Ahmadi’s remaining relatives, as well as for NEI’s Afghan colleagues. NEI is asking the Department of Defense to urgently evacuate and resettle Ahmadi family members and NEI’s employees at risk, compensate survivors, and conduct a meaningful investigation into the strike.
“It is a privilege for us to support NEI and the Ahmadi family members in this traumatic time,” said Hina Shamsi, Director of the ACLU’s National Security Project. “The U.S. wrongly killed their loved ones, and what makes this tragedy different from so many others during the war in Afghanistan is that because of public attention, top Pentagon officials met with NEI and explicitly promised to help. We also hope that the investigation into the strike provides NEI and the Ahmadi family meaningful transparency and accountability.”
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ACLU Press Contact:
125 Broad Street
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United States
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Complaints allege that the meal delivery companies deceived consumers and shortchanged restaurants already reeling from the pandemic shutdown
CHICAGO – Mayor Lori E. Lightfoot, Acting Business Affairs and Consumer Protection (BACP) Commissioner Kenneth Meyer, and Corporation Counsel Celia Meza today announced that the City of Chicago has filed two lawsuits against meal delivery giants Grubhub and DoorDash. These lawsuits are the result of a collaborative investigation led by BACP and the City’s Law Department. They are the first comprehensive law enforcement actions against meal delivery companies in the United States.
The lawsuits assert claims under the Chicago Municipal Code for engaging in deceptive and unfair business practices that harm restaurants and mislead consumers. They seek injunctive relief in the form of greater transparency and other key conduct modifications, restitution for restaurants and consumers hurt by these predatory tactics, and civil penalties for violations of the law.
“As we stared down a global pandemic that shuttered businesses and drove people indoors, the defendants’ meal delivery service apps became a primary way for people to feed themselves and their families, as well as support local restaurants,” said Mayor Lightfoot. “It is deeply concerning and unfortunate that these companies broke the law during these incredibly difficult times, using unfair and deceptive tactics to take advantage of restaurants and consumers who were struggling to stay afloat.”
The complaints allege that DoorDash and Grubhub’s misconduct has been ongoing for years and continues to this day. Specifically, both DoorDash and Grubhub:
- Advertise order and delivery services from unaffiliated restaurants without their consent, leaving restaurants to repair reputational damage and resolve consumer complaints caused by Defendants.
- Lure consumers into a bait-and-switch with deceptively small delivery fees upfront, only to charge misleading fees at the end of the transaction. This increases the total cost of delivery by as much as six times the amount initially advertised.
- Hide that menu prices on their platforms are often significantly higher than the prices available if ordering directly from the restaurant.
Other misconduct is specific to each company. Grubhub’s exploitative tactics have included:
- Publishing deceptive “routing” telephone numbers that Grubhub represented as the restaurant’s direct number, and regularly charging commissions even when calls to these numbers did not result in an order.
- Creating and maintaining “impostor websites” for restaurants, which look like the restaurant’s actual website but route unsuspecting consumers to Grubhub.
- Launching deceptive, promotional campaigns to “save restaurants” during the pandemic, while forcing participating restaurants to extend their contracts, cover the cost of the promotions, and pay Grubhub its full commission on all orders.
- Violating the City’s emergency cap of 15% on restaurant commissions.
DoorDash’s specific misconduct has included:
- Misleading consumers to believe they were tipping drivers directly, when in fact the customer “tip” was used to subsidize DoorDash’s own payment to its drivers.
- Imposing a misleading “Chicago Fee” of $1.50 on every order in the City, deceptively implying the fee was required by, or paid to, Chicago—when in fact DoorDash was the sole beneficiary.
At the height of the 2020 lockdown, approximately half of Chicago’s 7,500 restaurants had closed either temporarily or permanently. The Federal Reserve estimated that approximately 44,000 restaurant workers in the Chicago area lost their jobs in 2020. Meanwhile, sales for meal delivery service platforms have soared since pandemic-related health restrictions forced restaurants to close or severely limit indoor dining. From 2019-2020, year-over-year total orders placed with meal delivery service platforms have more than tripled nationally – from 263 million to 816 million. As Defendants’ business surged, their predatory practices persisted.
“We discovered that Grubhub and DoorDash have been engaging in deceptive and misleading business practices that harm consumers and exploit restaurants. These practices continued unabated during the pandemic when restaurants were struggling to survive,” said Acting BACP Commissioner Kenneth Meyer. “We heard from the hospitality industry and Chicago’s consumers about these unfair practices and this action demonstrates we will hold non-complying businesses accountable.”
The City is represented in these lawsuits by in-house counsel from the Affirmative Litigation Division in its Department of Law and by the law firm of Cohen Milstein Sellers & Toll PLLC.
The Grubhub complaint and DoorDash complaint were filed today. If any Chicago restaurant or consumer wishes to inform the City about their experience with meal delivery companies, they can do so by emailing mealdelivery@cityofchicago.org.
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MEDIA CONTACT:
Mayor’s Press Office
312.744.3334
No Immunity for Republic of Turkey in Sheridan Circle Attack on Pro-Democracy and Ethnic Kurd Protestors.
FOR IMMEDIATE RELEASE
Washington, D.C.: A unanimous panel of the District of Columbia Circuit court of Appeals agreed with the district court that Turkey is not entitled to foreign sovereign immunity for its attack on pro-democracy and ethnic Kurd protestors, including children and senior citizens, who were kicked and beaten by President Erdoğan’s security detail. The attack occurred on a busy Washington, DC street, and was captured on video and police body camera footage that was viewed worldwide. The Court of Appeals also rejected Turkey’s political question and comity defenses. See the U.S. Court of Appeals opinion.
Select quotes from the D.C. Circuit Court of Appeals opinion: 20-7017 Lusik Usoyan, et al v. Republic of Turkey (1:18-cv-01141-CKK)
When viewed up close, we believe the decisions by the Turkish security detail giving rise to the plaintiffs’ suit were not the kind of security-related decisions that are “‘fraught with’ economic, political, or social judgments. Cope, 45 F.3d at 450. The nature of the challenged conduct was not plausibly related to protecting President Erdogan, which is the only authority Turkey had to use force against United States citizens and residents. Our analysis might have been affected if Turkey had consulted with the United States regarding the specific decisions giving rise to the plaintiffs’ suit, see Macharia, 334 F.3d at 67, but there is no such allegation here and, as noted earlier, the United States has indicted fifteen Turkish security officials as a result of their actions. Turkey’s claim to sovereign immunity thereby fails.” (pg. 24)
. . .
In the same way that speeding down a residential street may occasionally be justifiable but is not an execution of policy, the Turkish security detail’s actions may have been justified in some circumstances but cannot be said in this case to have been plausibly grounded in considerations of security-related policy and thus do not fall within the discretionary function exception. (pg. 24)
“Our clients include parents with young children and retirees who were peacefully protesting Turkey’s abuse of the Kurd community when they were kicked, punched and stomped by Turkish security officials – right here on Massachusetts Avenue in Washington DC. We are pleased with the thoughtful and unanimous opinion issued today by the D.C. Circuit Court of Appeals finding that Turkey is not entitled to sovereign immunity for its attack.” stated Agnieszka Fryszman, plaintiffs’ counsel from Cohen Milstein Sellers & Toll PLLC, who argued the case to a three-judge panel at the D.C. Circuit Court of Appeals in January 2021. “On behalf of our clients, we look forward to pursuing justice at trial.”
“We and our clients are very pleased with the Court’s decision,” said Doug Bregman, of Bregman, Berbert, Schwartz & Gilday, LLC. “Our clients, while exercising their First Amendment rights, were beaten by President Erdogan’s guards, in Washington D.C. of all places. Turkey needs to be brought to justice for the sake of our injured clients and to prevent similar incidents in the future. The Court has sent a message, Turkey needs to hear it.”
“This result was a resounding rejection of Turkey’s assertion that it has nearly limitless discretion to inflict violence on protestors within the United States. It was heartening to see the judicial branch, and both political branches unanimously reject this dangerous argument,” stated Steven R. Perles of Perles Law Firm, PC.
“I’d like to express my deep gratitude to American people, for building a system that is just and fair,” said Lusik Usoyan, one of the Sheridan Circle protesters injured by Turkish President Erdoğan’s security detail. “Turkey has committed many crimes and has always managed to get away with it smoothly. When it comes to American people we stand out for our commitment to freedoms we have chosen to protect and to enjoy and no foreign government can force their housekeeping on our land and our people.”
“I am very happy with the court’s decision that the Republic of Turkey does not have immunity for its attack on peaceful protestors in the United States,” said Murat Yasa, also a Sheridan Circle protester injured by Turkish President Erdoğan’s security detail. “I came to this country thirty years ago to escape the persecution faced by Kurds in Turkey but the brutal attack at Sheridan Circle brought these injustices to America’s doorstep.”
“I am proud to be a member of the team in this case,” stated Michael E. Tigar, Professor Emeritus (retired) of Duke Law School and American University, Washington College of Law and world-renowned human rights lawyer. “I was counsel in the case of Orlando Letelier and Ronni Moffitt, assassinated 45 years ago at Sheridan Circle by agents of the Pinochet regime. We obtained a measure of justice for the Orlando’s and Ronni’s family. Once again, the courts have held that there is neither impunity nor immunity for lawless violence against dissenters.”
As detailed in the complaint, on May 16, 2017, approximately 20 people gathered in front of the Turkish Chief of Mission Residence in Sheridan Circle on Embassy Row. Hoping to call attention to Turkey’s mistreatment of the Kurdish people – an ethnic minority population long subjected to persecution and human rights violations in that country, as detailed in a U.S. State Department report. Many of the demonstrators – who included young children and the elderly – were of Kurdish descent.
The Turkish security personnel and their civilian sympathizers taunted the peaceful demonstrators and ultimately charged past the U.S. law enforcement personnel on the scene to attack the peaceful protestors, viciously kicking and beating the group. The attack left many of the protesters badly injured
The victims are represented by Agnieszka Fryszman of Cohen Milstein Sellers & Toll, Mark Sullivan, Joshua Colangelo-Bryan of Dorsey & Whitney LLP, Steven Perles of the Perles Law Firm, PC, Doug Bregman of Bregman, Berbert, Schwartz & Gilday, LLC, and Michael Tigar, Professor Emeritus of American University Washington College of Law.
About Cohen Milstein Sellers & Toll PLLC
Cohen Milstein Sellers & Toll PLLC is recognized as one of the premier law firms in the country handling major, complex plaintiff-side litigation. With more than 100 attorneys, Cohen Milstein has offices in Washington, D.C., Chicago, Ill., New York, N.Y., Palm Beach Gardens, Fla., Philadelphia, Pa., and Raleigh, N.C. For additional information, please call 202.408.4600 or visit our website at www.cohenmilstein.com.
About Bregman, Berbert, Schwartz & Gilday, LLC
For more than four decades, Bregman, Berbert, Schwartz & Gilday, LLC has been devoted to serving the interests of its clients in Maryland, Virginia, Washington, D.C. and nationwide. For additional information, please call (301) 656-2707 or visit www.bregmanlaw.com.
About Perles Law Firm, PC
The Perles Law Firm specializes in foreign sovereign immunity litigation, civil antiterrorism law, and transnational judgment enforcement. Over several decades it has represented thousands of victims of international terrorism in their pursuit of justice against state sponsors of terrorism, non-governmental terrorist organizations, and terrorism financiers. For additional information, please call (202) 955-9055.
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FOR IMMEDIATE RELEASE
Shore Health System, Inc., had been overbilling government health care programs from 2014 to 2018
BALTIMORE, MD — National plaintiffs firm Cohen Milstein Sellers & Toll announced today that the Maryland U.S. Attorney’s Office and the State of Maryland reached a nearly $9.5 million settlement with Shore Health System, Inc. (Shore Health) to resolve False Claims Act allegations filed by a whistleblower. Shore Health, a subsidiary of the University of Maryland Medical System that operates two hospitals and several non-hospital outpatient centers located on Maryland’s Eastern Shore, was alleged to have overcharged the Medicare and Maryland Medicaid programs between 2014 and 2018 for services provided to Medicare beneficiaries. Cohen Milstein Sellers & Toll represented the whistleblower who brought forward the case.
The whistleblower filed the civil lawsuit in the U.S. District Court for the District of Maryland in 2016. The case is captioned The United States of America and The State of Maryland ex rel. J. Doe v. Shore Health System, Inc., Civil No. CCB-16-2605 (D. Md.), and was unsealed on Friday by U.S. District Judge Catherine C. Blake.
“This settlement is a reminder about the important role that whistleblowers play in identifying and rooting out fraud in the healthcare industry,” said Gary Azorsky, co-lead counsel for the whistleblower and Co-chair of Cohen Milstein’s Whistleblower/False Claims Act Practice Group. “This case would not have been possible without this brave individual coming forward and reporting this improper billing practice to the government.”
“Our client is a person of strong integrity, who, by coming forward, brought an end to Shore Health’s practice of overcharging Medicare and Maryland Medicaid,” said Casey Preston, co-lead counsel for the whistleblower and also a member of Cohen Milstein Sellers & Toll PLLC’s Whistleblower/False Claims Act practice group. “We thank the District of Maryland’s U.S. Attorney’s Office and the Maryland Attorney General’s Office for their diligent and thorough investigation of our client’s allegations and for protecting taxpayers and government health care programs by recovering the substantial overpayments.”
The system for compensating Maryland hospitals for services furnished to Medicare beneficiaries is unique. Under Maryland’s system, the Maryland Health Services Cost Review Commission (HSCRC) sets the amount that the federal Medicare program pays for inpatient and outpatient services furnished to Medicare beneficiaries at Maryland hospitals and affiliated health care facilities that are located on the campus of a hospital. The HSCRC does not have authority to set the rates Medicare pays for outpatient services provided to Medicare beneficiaries at hospital-owned outpatient centers that are off the hospital’s campus. The HSCRC’s reimbursement rates for outpatient services furnished at Maryland hospitals are generally higher than the rates Medicare pays for outpatient services.
The qui tam lawsuit alleged that since mid-2014, Shore Health had been billing Medicare for outpatient services furnished at its non-hospital facilities as though the services had been provided at one of its hospitals, causing Medicare to pay it the higher HSCRC reimbursement rates for services. According to the whistleblower, Shore Health continued billing for services provided at its non-hospital centers at the higher HSCRC rates even after the health system’s leaders were notified that Medicare was overpaying for services provided at the non-hospital centers. In total, Shore Health overbilled Medicare and Maryland Medicaid by approximately $9.5 million.
The United States settled the federal government’s claims in June 2019, and the State of Maryland subsequently settled the State’s claims in June 2021. The U.S. District Court ordered that the action be unsealed on July 16. In settling, Shore Health did not admit liability.
The federal False Claims Act and its state law equivalents permit private citizens to bring lawsuits on behalf of the government against persons who present false or fraudulent claims for payment under government contracts or programs, such as Medicare, Medicaid, TRICARE, and the FEHB Program. Whistleblowers, like the individual who brought this lawsuit, are entitled to receive a portion of the proceeds of any settlement or judgment awarded against a defendant.
Joining Gary Azorsky and Casey Preston as co-lead counsel representing the whistleblower is Jeanne Markey, who with Azorsky serves as co-chair of Cohen Milstein’s Whistleblower/False Claims Act practice group.
Cohen Milstein’s Whistleblower/False Claims Act practice group has decades of experience successfully pursuing whistleblower cases under the federal and state false claims act statutes in the health care, pharmaceutical, and defense contractor industries, and in other industries that transact business with the government. In 2016, they represented one of two whistleblowers in United States et al. ex rel. Lauren Kieff v. Wyeth, which resulted in one of the largest qui tam settlements in U.S. history – Wyeth agreed to pay $784.6 million to the U.S. government and the over 35 intervening states.
Learn more about Cohen Milstein’s Whistleblower practice.
About Cohen Milstein
Cohen Milstein Sellers & Toll PLLC is a national leader in plaintiff class action lawsuits and litigation. As one of the premier firms in the country handling major complex cases, Cohen Milstein, with 90 attorneys, has offices in Washington, D.C., Chicago, IL, New York, NY, Philadelphia, PA, Palm Beach Gardens, FL, and Raleigh, NC. For more information, visit http://www.cohenmilstein.com or call 267.479.5700.