After the Supreme Court’s AT&T v. Concepcion decision, it is hardly surprising to see courts enforcing arbitration clauses between plaintiffs and banks, employers, or retailers.  However, novel methods to avoid arbitration clauses and class action waivers are also emerging.  As part of a recent settlement between the San Francisco City Attorney and a Bank of America subsidiary, the financial institution agreed not to insert mandatory class action waivers into consumer contracts for credit cards.  See Settlement Agreement, People v. Nat’l Arbitration Forum, No. 473-569 (S.F. Super. Ct. Aug. 18, 2011).  Further, FIA Card Services agreed to not arbitrate collections disputes with California consumers for two years, and to stop using the notoriously anti-consumer National Arbitration Forum for five years.  The settlement also secures $5 million for San Francisco city taxpayers.

A Los Angeles Superior Court judge has granted preliminary approval of a settlement worth up to $265 million between Ticketmaster and customers who alleged that Ticketmaster should have but did not refund order processing fees and UPS shipping costs when customers cancelled ticket orders.  See Schlesinger v. Ticketmaster, No. BC 304565 (L.A. Super. Ct. Nov. 2, 2011) (order granting preliminary approval) (available here).

The settlement provides for discounts on future ticket purchases by class members, defined as those who did not receive a full refund on transactions made through the Ticketmaster website between October 21, 1999 and October 19, 2011.  See Settlement Agreement, Schlesinger v. Ticketmaster, No. BC 304565 (L.A. Super. Ct. Nov. 2, 2011) (available here).  Lead class counsel stand to receive up to $16.5 million in attorneys’ fees and costs.  Id.  The final approval hearing is set for May 29, 2012.

A Northern District judge has conditionally certified claims brought under the Fair Labor Standards Act (FLSA) against an industrial supply company by two salaried retail store general managers.  See Deane v. Fastenal, No. 3:11-cv-00042 (N.D. Cal. Nov. 14, 2011) (order granting conditional certification) (available here).  The named plaintiffs seek to represent a nationwide class of approximately 2,000 former and current general managers who were allegedly misclassified as exempt employees.  Id.  Judge Susan Illston found that the named plaintiffs’ declarations and their documentary evidence established that they were similarly situated to the proposed class members, and found that the company’s contrary declarations did not sufficiently negate this showing.  Id.  Pursuant to the FLSA’s unique procedures, the court ordered Fastenal to provide the general managers’ contact information to a class action administrator, which will send the putative class members an opt-in notice.  Id.

Wachovia Bank (now a part of Wells Fargo Bank) will pay $148 million to federal and state agencies and municipalities after admitting to anticompetitive activity in the municipal bonds market.  State and federal authorities charged the bank with entering into illegal agreements to manipulate the bidding process and rig bids on bond reinvestment transactions from 1997 through 2005.  As part of a non-prosecution agreement with the SEC, Wells Fargo admitted that former employees of Wachovia engaged in this illegal conduct.  The Justice Department has already obtained $525 million in settlements with Bank of America, UBS AG and JP Morgan over allegations of corruption in the municipal bond market.