Verdict . News

•Growth Cave co-CEOs face permanent bans on selling business opportunities and credit repair services

court

FTC Secures $50M Settlement Against Growth Cave Business Opportunity Fraud

The Federal Trade Commission has reached a settlement with Growth Cave defendants, permanently banning the company's co-CEOs from marketing business opportunities and credit repair programs following allegations of a $50 million consumer fraud scheme. As part of the agreement, Growth Cave's leadership must liquidate millions in assets, including a multimillion-dollar house, to provide restitution to affected consumers.

•Settlement requires liquidation of millions in assets, including luxury real estate, for consumer redress

•Gerber voluntarily recalled limited batches of Arrowroot Biscuits due to potential soft plastic and paper contamination

Gerber Recalls Arrowroot Biscuits Over Foreign Material Risk

Gerber Products Company voluntarily recalled limited batches of Arrowroot Biscuits on January 26, 2026, due to potential contamination with soft plastic and paper pieces from an arrowroot flour supplier. The FDA announced the recall as a precautionary measure to protect infant and toddler consumers.

•Contamination originated from an arrowroot flour supplier that initiated its own recall

Federal Circuit

Sixth Circuit Court of Appeals

6th Circuit Rules on Digital Contract Formation in Rocket Mortgage Case

The Sixth Circuit Court of Appeals issued a decision in *Dahdah v. Rocket Mortgage, LLC*, examining how valid contracts are formed online when websites require consumers to agree to terms through digital actions like clicking buttons or registering accounts.

•Sixth Circuit examined what online actions constitute valid contract formation between consumers and websites

•Case was recommended for publication, indicating precedential value for future digital contract disputes

•Federal court granted FTC's temporary restraining order against Top Healthcare Options Insurance Agency Inc. and 11 related defendants

Court Halts Deceptive Health Insurance Telemarketing Scheme at FTC Request

A federal court in Florida has temporarily stopped operations of Top Healthcare Options Insurance Agency Inc. and 11 related defendants accused of running a deceptive telemarketing scheme that caused tens of millions in consumer harm. The FTC alleges the defendants misled consumers seeking comprehensive health insurance by selling limited benefit plans that left buyers exposed to crushing medical costs.

•Defendants allegedly operated deceptive telemarketing scheme causing tens of millions in consumer harm

State Court

•Iowa Supreme Court unanimously affirmed jurisdiction over TikTok entities in Attorney General Brenna Bird's lawsuit

Supreme Court of Iowa

Iowa Supreme Court Affirms Jurisdiction Over TikTok in Safety Lawsuit

The Iowa Supreme Court unanimously affirmed a district court's denial of TikTok's motion to dismiss Iowa Attorney General Brenna Bird's lawsuit. The case alleges TikTok entities misled users about app safety through false age ratings despite mature content.

•Case alleges TikTok misled users with "12+" age rating despite mature content on platform

Federal Circuit

Ninth Circuit Court of Appeals

9th Circuit Affirms Dismissal in Parent's Suit Against Arizona School

The Ninth Circuit Court of Appeals affirmed a district court's dismissal of multiple claims brought by Kimberly Sweidy against Spring Ridge Academy and eight employees. The unpublished decision upheld rulings on motions to strike and denial of amendment requests in the case involving Sweidy's daughter's enrollment at the Arizona boarding school.

•Ninth Circuit affirmed district court dismissal of seven claims against Arizona boarding school

•Court upheld rulings striking plaintiff's evidence submissions and denying amendment requests

•FTC settles with GM over unauthorized collection and sale of precise geolocation and driving behavior data from millions of vehicles

Jan 14, 2026•4 min read

FTC Finalizes Settlement With GM Over Unauthorized Driver Data Sales

The Federal Trade Commission finalized a settlement order against General Motors and OnStar for collecting and selling millions of consumers' precise location and driving behavior data without proper consent. The order imposes a five-year ban on sharing such data with consumer reporting agencies and requires 20 years of enhanced consumer protections.

•Settlement imposes five-year ban on sharing consumer data with reporting agencies and 20-year compliance requirements

•Elder fraud losses increased 300% from $600 million in 2020 to $2.4 billion in 2024

Jan 13, 2026•4 min read

FTC Report: Elder Fraud Losses Jump 300% to $2.4 Billion in 2024

The Federal Trade Commission's annual report to Congress reveals that fraud losses among older adults skyrocketed from $600 million in 2020 to $2.4 billion in 2024. The dramatic increase is driven primarily by investment scams targeting seniors through social media, with many victims losing over $100,000.

•Investment scams became the top fraud type targeting seniors, often initiated through social media platforms

•FTC filed contempt motion against Cliq, Inc. and executives for violating 2015 fraud prevention order

Jan 13, 2026•4 min read

FTC Seeks $52.9M in Penalties Against Payment Processor for Order Violations

The Federal Trade Commission has asked a federal court to hold payment processor Cliq, Inc. and its executives in contempt for systematically violating a 2015 order designed to prevent fraud in credit card processing. The agency is seeking $52.9 million in consumer relief and permanent industry bans for the company's CEO and CTO.

•Agency seeks $52.9 million in consumer relief and permanent industry bans for CEO and CTO