Class Action Protection News
As reported in the Daily Journal (Trial Lawyers File Ballot Initiatives Against Limiting Class Actions, Aug. 15), The Recorder (Ballot May Host Class Warfare, Aug. 16), and blogged about on the California Majority Report, on August 14, Consumer Attorneys of California (CAOC) filed initiatives that will provide true reform to corporate America by making big oil, big tobacco, and big health insurance corporations and their CEOs accountable for their wrongdoing.
Our goal in filing these initiatives is to ensure corporate accountability. Health insurers, big tobacco, and big oil are constantly undermining the rights of Californians, harming their consumers and employees, and doing everything they can to avoid any kind of accountability for it. The class action measure filed last month by their front group, the Civil Justice Association of California (CJAC), is one step further toward their profit over people agenda. We will, because we have to, continue to fight to keep them in check - whatever that takes.
Californians are fed up with health insurers, big tobacco, and big oil companies that put their profits ahead of workers, seniors, clean air and water, and safe products for people.
President Ray Boucher said the following in a press announcement:
"A few weeks ago CJAC and the Chamber of Commerce - backed by the oil, tobacco, insurance, and HMO industries - filed an initiative designed to eliminate Californians' rights to protect themselves against corporate fraud, dangerous products, and the pilfering of worker and investor profit sharing plans. They claim their motivation is to bring predictability to class actions, but we all know we cannot trust the Enrons, WorldComs, and Tycos of the world. Their real motivation is corporate greed. Eliminating class actions would give these corporate giants a free pass when they destroy the rights of the people of California."
"Today we're standing up against the Intels of the world and their racist ads, the Enrons of the world and their corporate greed, and the HMOs of California and their denial of basic health care needs for millions of Californians everyday. Today we're filing three initiatives designed to provide power to consumers, workers, and small businesses in California. These initiatives will provide real reforms and allow us to hold the Enrons, the HMOs, and the oil companies accountable for misconduct when they harm consumers and shareholders."
"It's time to say we're not giving away any more of our legal rights to corporate America, instead we're putting the power back into the hands of the people we can trust: the voters, the workers, and the consumers of California."
The initiatives filed by CAOC include:
Class Action Reform and Corporate Accountability Act:
This initiative would reform the class action law by requiring that consumers be notified in a more effective way if they are going to be involved in a lawsuit, by requiring that 25 percent of punitive damage awards be directed to support the state's enforcement of consumer laws, and authorizing stricter standards when it comes to the conduct of lawyers negotiating settlements.
Corporate Accountability Act:
This initiative would take away any illegitimate pay and investment income from executives who are convicted of corporate fraud and use that money to support the Victims of Corporate Fraud Compensation Fund.
No Say No Pay Act:
This initiative would require publicly traded companies to release information about the pay for top executives, allow stockholders in those companies to vote on compensation levels for top executives, and allow shareholders to file class action lawsuits against executives and board members if they approve of executive pay and benefits - or alter the pay - without shareholder approval.
With the filing of their anti-consumer initiative (contemptuously called the "California Class Action Lawsuit Fairness Act") last month, clearly the big businesses behind this effort are seeking a 'get out of jail free' card and are only interested in eliminating class action lawsuits to stop their board member companies from being held accountable to consumers for wrongful conduct.
Without class actions - the same kind of lawsuits that were fought in Brown vs. Board of Education, which outlawed school segregation and set the stage for the entire civil rights movement, and Jensen v. Eveleth Taconite Co. the first class action sexual harassment lawsuit in the United States and the true story behind the academy-award nominated movie, North Country - individual voices would be silenced against large corporations such as those that involved with this anti-consumer initiative effort.
A weighty coalition is forming against the corporate greed initiative:
- AARP Foundation Litigation
- ACLU of Northern California
- ACLU of San Diego and Imperial Counties
- American Association for Justice
- Asian Law Caucus
- Asian Pacific American Legal Center
- California Alliance for Retired Americans
- California Employment Lawyers Association
- California Foundation for Independent Living Centers
- California Labor Federation
- California Reinvestment Coalition
- California Teamsters Public Affairs Council
- California Women's Law Center
- Center for Justice and Democracy
- Coalition of Disability Access Professionals
- Consumer Action
- Consumer Federation of California
- Consumers for Auto Reliability and Safety
- Designing Accessible Communities
- Disability Rights Advocates
- Disability Rights Education and Defense Fund
- Equal Rights Advocates
- Foundation for Taxpayer and Consumer Rights
- Gray Panthers
- Law Foundation of Silicon Valley
- Lawyers' Committee for Civil Rights of the San Francisco Bay Area
- Legal Aid Society- Employment Law Center
- Legal Services for Prisoners with Children
- Mexican American Legal Defense and Educational Fund
- National Center for Youth Law
- National Consumer Law Center
- National Immigration Law Center
- National Senior Citizens Law Center
- Privacy Rights Clearinghouse
- Protection & Advocacy Inc. (disability)
- Public Advocates
- Public Counsel
- Public Interest Law Project
- Speak Out California
- Strengthening Our Lives (LA County Federation)
- Teamsters Union Local No. 70
- Utility Consumers' Action Network
- Western Center on Law & Poverty
- Women's Employment Rights Clinic
- Youth Law Center
CAOC is working hard with our coalition allies to expose the hypocrisy of the CJAC board members in pursuing this attack on Californians' rights. We have identified significant class actions against each one of the CJAC board members and are expanding our efforts to educate the public about each company's wrongdoing.
Importantly, one of the most insidious impacts of the initiative - its devastation of class actions to enforce important civil rights protections - has been exposed. Intel, chair of the CJAC board, is coming under intense scrutiny for its placement of a racist ad (view a YouTube video regarding this insensitive ad). The ad, coupled with Intel's championing of this attack on civil rights, we've learned has resulted in more than 20,000 faxes to Intel decrying participation in this initiative.
Please review further information including press releases about CAOC's initiatives or CJAC's initiative and text of the measures at www.caoc.com/ClassActionInitiative.
Should you receive any media calls on these measures, please direct them to Jordan Traverso at (916) 494-2681. Director of Communications Consumer Attorneys of California (916) 442-6902 ext. 124.
