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Calif. Class Actions Hamstrung in Prop 64 Cases

The Recorder

July 14, 2006

In a major ruling on Proposition 64, a Los Angeles appellate court has made it far more difficult for false advertising class actions to be filed under California's unfair competition law. In a ruling released Tuesday, the 2nd District Court of Appeal held that under Prop 64 -- the 2004 ballot measure that restricted private attorney general suits -- the "mere likelihood" of injury is no longer enough to have standing to file a class action under the UCL's fraudulent acts provision.

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