Teles-Rosario v. Catalyst Brands — Court consolidates six data-breach class actions and appoints interim class counsel

Reported / Citable

Background

Six putative class actions alleged that Catalyst Brands LLC, JCPenney, and, in one action, Authentic Brands Group LLC failed to use reasonable security practices to protect employment-related personally identifiable information. The plaintiffs alleged that a June 2026 data breach exposed information including names, W-2 tax records, and Social Security numbers.

The actions arose from the same alleged breach, asserted substantially overlapping claims on behalf of similarly defined putative classes, and sought similar relief. The plaintiffs moved to consolidate the cases, appoint Gerald D. Wells III and Raina C. Borrelli as interim class counsel, stay pleading and other deadlines, and establish deadlines for a consolidated complaint and defendants’ response. Defendants consented to consolidation, the requested stay, and the proposed pleading schedule, but took no position on interim counsel.

The Court’s Holding

The court granted the motion in part, holding that consolidation under Federal Rule of Civil Procedure 42(a) was appropriate because the cases shared common factual and legal questions, were at the same early procedural stage, and involved overlapping proposed classes and relief. Consolidation would conserve resources, reduce duplicative proceedings, and avoid inconsistent rulings, while creating little risk of prejudice. The court consolidated the six actions for all purposes, including pretrial proceedings and trial, and designated Feldman v. Catalyst Brands LLC, No. 4:26-cv-00649, as the lead case under the caption In re Catalyst Brands LLC et al. Data Breach Litigation.

The court also appointed Wells and Borrelli as interim class counsel under Rule 23(g), giving them sole authority over specified pretrial coordination, discovery, settlement negotiations, communications, and delegation of work. It denied the request to stay pleading and other deadlines, but required plaintiffs to file a consolidated class-action complaint within 45 days of the order and defendants to answer or otherwise respond within 45 days after that filing.

Key Takeaways

• Six putative class actions arising from the same alleged JCPenney-related data breach were consolidated for pretrial proceedings and trial.
• The court appointed Gerald D. Wells III and Raina C. Borrelli as interim class counsel with exclusive authority over major pretrial and settlement matters.
• The court denied a general stay but set sequential 45-day deadlines for the consolidated complaint and defendants’ response.

Why It Matters

The order centralizes litigation over the alleged breach in a single lead case, reducing the risk of inconsistent decisions and eliminating duplicative filings, discovery, hearings, and trials. It also establishes a unified leadership structure for plaintiffs’ counsel before any class has been certified.

The decision illustrates how courts may use Rules 42(a) and 23(g) at the outset of overlapping data-breach class actions to streamline case management while preserving the distinction between a putative class and a certified class.