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U.S. Chamber's Litigation Center Applauds California Court Class Action Reversal

Tuesday, July 11, 2006 - 8:00pm

Washington, D.C.-The National Chamber Litigation Center (NCLC), the public policy law firm of the U.S. Chamber of Commerce, today applauded the recent decision by the Court of Appeals of California for Los Angeles County to set aside the class action certification in Pfizer, Inc. v. Galfano.

"The appeals court clearly understood that a new loophole was being created by granting class action status to unharmed plaintiffs," said Robin Conrad, NCLC senior vice president. "Yesterday's appellate decision sends a clear message not to undermine the will of the people of California by circumventing the injury and reliance requirements of Proposition 64."

California voters approved Proposition 64 in November 2004 in response to frivolous lawsuits against small businesses, imposing new restrictions on private enforcement under the Unfair Competition Law and the False Advertising Law, otherwise known as California 17200. As passed, Proposition 64 closed an existing loophole for lawsuit abuse by requiring proof of injury.

NCLC filed an amicus brief in Pfizer, Inc. v. Galfano in April 2006, arguing that Proposition 64 clearly established that a consumer class action could not be certified unless every member of the plaintiff's class could show they suffered an injury as a result of the false advertising.

Recognizing increasing concern over the regulatory climate in California, NCLC recently formed the California Litigation Advisory Committee to solely focus on California cases that adversely impact the business community.

NCLC is a membership organization that advocates fair treatment of business in the courts and before regulatory agencies. The U.S. Chamber of Commerce is the world's largest business federation representing more than 3 million businesses and organizations of every size, sector, and region.

Note-The Chamber's amicus brief can be viewed here: /nclc/caselist/briefsftoq.htm

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