News & Publications

Attention California Employers: Fourth Appellate District Denies Motion To Compel Arbitration In”Headless” Paga Action

On February 26, 2025, in Parra Rodriguez v. Packers Sanitation Services Ltd., LLC, the California Court of Appeal, Fourth Appellate District held that trial courts cannot order arbitration of unasserted individual claims under California's Private Attorneys General Act (PAGA). The decision affirmed a Superior Court decision denying a motion to compel arbitration where the plaintiff disclaimed all individual relief and brought the action in a representative capacity only. The Fourth Appellate District's decision departs from Leeper v. [...]

DEI Injunction Falls, For Now: 4th Circuit Allows Trump Administration Agencies To Enforce EOs

Takeaways A three-judge panel of the Fourth Circuit stayed, pending appeal, the district court's 2/21/25 injunction against enforcement of aspects of two EOs banning "illegal" DEI. The decision is based on the administration's representation that the enjoined provisions apply only to conduct that violates existing federal anti-discrimination law. Federal agencies may terminate contracts and require certifications pursuant to the EOs. The appeal of the 2/21/25 preliminary injunction remains pending. Employers should continue assessment of their [...]

Eastern District Of New York Dismisses Securities Class Action Against Exercise Equipment Company For Failure To Plead Falsity And Scienter

On February 14, 2025, Judge Margo Brodie of the United States District Court for the Eastern District of New York granted a motion to dismiss a putative class action asserting claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the "Exchange Act") against an exercise equipment company (the "Company") and certain of its officers and directors (the "Individual Defendants"). Jia Tian, et al. v. Peloton Interactive, Inc., et al., 23-cv-4279-MKB (E.D.N.Y. Feb. [...]