Six years ago, the U.S. Supreme Court stated in a plurality opinion that "Rule 23 unambiguously authorizes any plaintiff, in any federal proceeding, to maintain a class action if the Rule's requirements are met" -- even if the same case could not be brought as a class action under state law. Shady Grove Orthopedic Accos., P.A. v. Allstate Ins. Co., 559 U.S. 393, 406 (2010). While the Shady Grove ruling may seem clear when the conflicting state law is purely procedural, ... Keep Reading »
Cy Pres Standard Dispute Settled With Reasonable Approximation
The District Court for the Southern District of New York recently addressed whether the “next best” or “reasonable approximation” standard should apply when the court evaluates proposed cy pres designations in class action settlements. Observing that the Second Circuit had not definitively resolved this issue to date, the district court engaged in a thorough evaluation of the origins, justifications, and policy implications of the two standards. In the end, the court ... Keep Reading »
No Repose for Debate on Applicability of American Pipe Tolling
In its seminal 1974 American Pipe opinion, the Supreme Court held that the commencement of a class action tolls the applicable statutes of limitation as to all putative class members who would have been parties had the class been certified. Since then, courts have repeatedly applied American Pipe to toll statutes of limitation but disagreed as to whether the doctrine is based on legal principals under Rule 23 or the equitable power of the courts. The Eleventh Circuit ... Keep Reading »
Seventh Circuit Strikes Again – Rejects Settlement In Shareholder Deal Litigation
In yet another strongly-worded opinion, the Seventh Circuit rejected the proposed settlement of a Walgreens’ shareholder strike suit in which the class obtained “worthless” supplemental disclosures but class counsel received generous fees. Judge Posner authored the opinion, as he did in Person v. NBTY, Inc., 772 F.3d 778 (7th Cir. 2014) and Eubank v. Pella Corp, 753 F.3d 718 (7th Cir. 2014). He described the practice of settling “deal litigation” like this that yields ... Keep Reading »
“Placeholder” Motions to Certify are Unnecessary after Campbell-Ewald According to South Carolina District Court
Relying on the Supreme Court’s 2016 opinion in Campbell-Ewald, the United States District Court for the District of South Carolina ruled that a class action plaintiff need not file a “placeholder” motion to certify to avoid a defendant’s attempt to “pick-off” the plaintiff and moot the class with a Rule 68 Offer of Judgment (OJ). Plaintiff filed its putative class action complaint alleging violations of the Telephone Consumer Practices Act and immediately sought ... Keep Reading »
Smooth Operators: Seventh Circuit Untangles Objections and Affirms Settlement of Hair Product Class
The Seventh Circuit Court of Appeals affirmed a class settlement over objection in a case involving a hair-smoothing product (“the Smoothing Kit”) that allegedly destroyed users’ hair and burned their scalps. Plaintiffs sued Unilever United States, Inc. (“Unilever”) in the Northern District of Illinois. Related actions in Kentucky and California were transferred to the Northern District of Illinois. The settlement class consisted of “all persons who purchased or used ... Keep Reading »
Don’t Tip Just Yet: Uber Taxi Class Gets Limited Certification
A federal judge in San Francisco recently certified a limited class in a lawsuit against Uber under the California Unfair Competition Law (UCL) and the California Consumers Legal Remedies Act (CLRA). The plaintiff sought to certify a class of all Uber customers who used a traditional taxi from April 2012 to March 2013. However, after examining the claims under Rule 23 and both the UCL and CLRA, the court certified a class consisting of only those customers who received ... Keep Reading »
California Court Gives Ford SUV Tailgate Class the Boot
Plaintiffs from California, New Jersey, and Florida claimed their 2002-2005 Ford Explorers, Mercury Mountaineers, and Lincoln Aviators suffered from a common design defect: the plastic appliqué just below the flip-glass on the rear tailgate had a tendency to crack and allow water to corrode the metal parts that hold the flip-gate in place. As a result, plaintiffs asserted the flip-glass would spontaneously shatter or fall-off, resulting in a safety hazard and diminution ... Keep Reading »
Tablet Class Damages Model Doesn’t Tabulate … For Now
The Central District of California denied certification of a class that otherwise met the requirements of Rule 23 because the damages model proposed by plaintiff’s expert did not establish a reliable method for calculating classwide damages. Plaintiff sought to certify a class of purchasers of Fuhu’s “Nabi” line of rechargeable tablets for children. Plaintiff claimed that the tablets’ charging capabilities were defective and that Fuhu misrepresented the tablets’ ... Keep Reading »
Missouri District Court Joins the List: Unaccepted Rule 68 Offer Does Not Moot Claims
Yet another court has found that an unaccepted Rule 68 Offer of Judgment will not moot a putative class action, even where the offer purports to satisfy all of plaintiff’s demands. Plaintiffs sued in the Eastern District of Missouri and proposed to represent a class of at least 60 former joint venture general managers of Panera Bread Company whose buyout payments from Panera were allegedly capped at an amount lower than that to which they contractually agreed. Plaintiffs ... Keep Reading »
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