If you ever needed proof that class-action lawsuits are a good deal only for the lawyers, look no further than the news that Tim Hortons will settle a data-tracking suit with a doughnut and a coffee. For those of you who are not in Canada or Canada-adjacent, “Timmy’s” is a chain of restaurants that are kind of the love child of a McDonald’s and a Dunkin Donut shop. An investigation into the chain’s app a couple of years ago revealed that customer location data was being logged silently, even when they were not using the app, and even far, far away from the nearest Tim Hortons. The chain is proposing to settle with class members to the tune of a coupon good for one free hot beverage and one baked good, in total valuing a whopping $8.68. The lawyers, on the other hand, will be pulling in $1.5 million plus taxes. There’s no word if they are taking that in cash or as 172,811 coffees and doughnuts, but we think we can guess.
I’ve got a friend who tells me at every opportunity that soy is the downfall of humanity. Whatever ails us as a society, it’s the soy beans that did it. They increase violent tendencies, they make us fat and lazy, they run farmers out of business, and so on. He laments at how hard it is to find food that doesn’t include soy in some capacity, and for a while was resigned to eating nothing but chicken hot dogs and bags of frozen peas; anything else had unacceptable levels of the “Devil’s Bean”. Overall he’s a really great guy, kind of person who could fix anything with a roll of duct tape and a trip to the scrap pile, but you might think twice if he invites you over for dinner.
So when he recently told me about all the trouble people are having with soy-based electrical wiring, I thought it was just the latest conspiracy theory to join his usual stories. I told him it didn’t make any sense, there’s no way somebody managed to develop a reliable soy-derived conductor. “No, no,” he says, “not the conductor. They are making the insulation out of soy, and animals are chewing through it.”
Now that’s a bit different. I was already well aware of the growing popularity of bioplastics: the PLA used in desktop 3D printers is one such example, generally derived from corn. It certainly wasn’t unreasonable to think somebody had tried to make “green” electrical wiring by using a bioplastic insulation. While I wasn’t about to sit down to a hot bag of peas for dinner, I had to admit that maybe in this case his claims deserved a look.
This time last year, Stratasys, parent company of Makerbot, was implicated in a class action suit. Investors claimed Stratasys violated securities laws, and overstated both the performance of the 5th generation of Makerbot printers and the performance of the company itself. Court docs received by Adafruit have revealed this case has been dismissed with prejudice. Makerbot won this one.
The case presented by Stratasys investors relied on two obvious facts. First, the price of Stratasys shares fell far beyond expectations. Second, the extruder for the 5th generation of Makerbot printers – the ‘Smart Extruder’ – was terrible. No one can reasonably dispute these claims; shares of SYSS fell from $120 in September of 2014 to $30 in September of 2015. With many returns to handle, Makerbot quickly redesigned the Smart Extruder.
Both of these indisputable facts are in stark contrast to statements made by Stratasys and Makerbot at the time. In a press release for the 4th quarter 2013 financial results, Stratasys’ expected sales to grow at least 25% over 2013 and stated it was experiencing “strong sales” of its desktop 3D printer. Concerning the Smart Extruder, Makerbot stated this new feature of the 5th generation Makerbots would make them easy to use, and “define the new standard for quality and reliability.”
The facts of this case are not in dispute – Stratasys did not see the growth they expected in late 2013. The Smart Extruder certainly did not make printers more reliable. These facts, however, are not sufficient to violate securities law. In a wonderful legal turn of phrase, the judge deciding this case called the statements about the quality of the 5th generation Makerbots consisted of, “non-actionable puffery,” and a ‘statement so vague and such obvious hyperbole than no reasonable investor would rely on them.’
Statements made by Stratasys on their financial performance were also found not to be sufficient to violate securities laws. Stratasys did make several statements about negative performance in late 2014 and 2015, and positive statements made earlier did not have an intent to deceive investors.
This is good news for Makerbot. The claims brought by investors in this case had little merit. The case cannot be appealed, and Stratasys is no longer facing a class action suit. Does this news actually matter? Not really; Makerbot is a dead man walking, and 2016 sales will be at levels not seen since 2010 or 2011.
The consumer 3D printing industry is booming, despite the Makerbot bellwether though.
On April first Sony rolled out new firmware for the PlayStation 3 that removed the ability to install Linux on the system by blocking a feature called OtherOS. Now a class action lawsuit has been filed against the company for its actions. It doesn’t take an attorney to figure out that they removed features that were a major selling point for the system. As mentioned in our previous article, the ability to use an exploit to access the hardware doesn’t mean that every user installing Linux on the system plans to do so. The suit asserts that users had no opportunity to negotiate the System Software Licensing Agreement which is only presented to a purchase after the sale is made. The lawsuit is availble in PDF from from IGN.
Who knows where this one will end up. The suit seeks an injunction against the removal of the OtherOS feature as well as compensatory damages. No matter what happens, we still think the removal was a bad move on Sony’s part.