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 »
Federal District Courts Class Action Articles
The latest class action developments and trends in Federal District Courts, including news, key cases, and strategies.
Tendering Funds to Support Unaccepted Offer of Judgment Still Does Not Moot Case
On July 6, the Sixth Circuit addressed a question apparently left open by the Supreme Court in its recent Campbell-Ewald case. In Campbell-Ewald, the Supreme Court ruled that an unaccepted Rule 68 offer of judgment did not moot class claims when no motion for class certification is pending. A plaintiff who rejects a rule 68 offer of tender extinguishes the offer. The court did not address, however, whether an actual tender of funds to a class plaintiff extinguished ... Keep Reading »
A Tale of Two Decertification Motions
The Seventh and Eighth Circuits both addressed motions to decertify classes the week of July 5—with divergent results. These cases illustrate the deference afforded district courts’ class certification determinations. Both courts refused to find the trial courts’ decertification decisions to constitute an abuse of discretion. They also illustrate the importance of a sensitivity to the requirements of the specific cause of action, which themselves may dictate whether a ... Keep Reading »
Court Orders Additional Notice to Class Regarding Counsel’s Request for Fees Based on Work Performed Following Initial Fee Award
The Northern District of Illinois vacated its grant of fees to class counsel for work performed following an initial fee award, finding that Rule 23(h) required notice to the class regarding counsel’s new fee request, even though the total attorneys’ fees awarded were within the range disclosed in the original class notice. As discussed in a prior post, the Seventh Circuit affirmed the initial award of fees to class counsel, notwithstanding that the settlement included a ... Keep Reading »
Another One Bites the Dust: Maryland Federal District Court Dismisses Putative Data Breach Class Action for Lack of Standing
The United States District Court of Maryland recently dismissed a putative class action alleging that CareFirst’s failure to adequately secure the computer hardware storing their customers’ personal information led to two separate data breaches in June 2014 and May 2015. Plaintiffs alleged that CareFirst knew or should have known that a data breach could have occurred because the information stolen is “highly coveted by and a frequent target of hackers.” Plaintiffs also ... Keep Reading »
Illinois District Court Holds CAFA and Diversity Both Provide Federal Jurisdiction Over Class Actions
The Southern District of Illinois recently confirmed that traditional diversity jurisdiction and jurisdiction under the Class Act Fairness Act (CAFA) provide two separate means of obtaining federal jurisdiction over class action lawsuits—though, in this case, defendants failed to satisfy either. Two plaintiffs brought a putative class action lawsuit in state court alleging that their employer failed to pay overtime wages. The defendant, an Indiana citizen, removed the ... Keep Reading »
…And We’re Back! Still No Resurgence of “Picking Off” After Campbell-Ewald
Following an interlocutory appeal, in which the First Circuit ruled that a Rule 68 offer made prior to class certification did not moot the plaintiff’s claim (see here), defendant returned to the Massachusetts district court seeking dismissal on Rule 68 grounds. Defendant had done its homework: relying on the Supreme Court’s January Campbell Ewald decision (see here), defendant had sent plaintiff a certified check for $4,800 and moved to deposit the same amount with the ... Keep Reading »
Southern District of California Rejects Coupon Class Settlement
Jaret J. Fuente and D. Matthew Allen The Southern District of California rejected a pre-certification class settlement because it provided for an inadequate coupon payment and a tenuous cy pres award, and included a clear sailing attorney fee provision. Plaintiff Hofman alleged that Dutch, LLC sells jeans labeled “Made in the USA” that contain foreign-made components (buttons, rivets, zippers, etc.) in violation of the California Business and Professional Code and the ... 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 »
No Resurgence of “Picking Off” After Campbell-Ewald
We previously reported on two Rule 68 offer of judgment cases: Campbell-Ewald Co. v Gomez, 136 S.Ct. 663 (2016), see Supreme Court Rules Unaccepted Rule 68 Offer of Judgment Cannot Moot Class Action , in which the Supreme Court left open the possibility that an actual tender of the full amount of plaintiff’s claim would moot the claim, and Bais Yaakov v. Graduation Source, 2016 WL 1271693 (S.D.N.Y. March 29, 2016), see Will Tender of Full Amount of Named Plaintiff’s ... Keep Reading »
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