The Third Circuit recently vacated class certification, granted by the Eastern District of Pennsylvania after nearly a decade of litigation, in an antitrust case alleging that a pharmaceutical company entered into agreements with four generic drug makers that, acting together, delayed the sale of generic drugs and prevented the creation of a competitive market. In the second part of its panel opinion regarding predominance under Federal Rule of Civil Procedure 23(b)(3), ... Keep Reading »
Search Results for: rule 23
Nothing Shady Where State Statutory Language Restricting Class Actions is Clear
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 »
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 »
Third Circuit Rejects Inflated-Value Theory of Damages, Declines to Certify Law School Tuition Class
The Third Circuit recently affirmed the denial of class certification in a suit alleging that a law school made misrepresentations about the employment status of its graduates, thereby inducing students to pay inflated tuition in violation of the New Jersey and Delaware consumer fraud statutes. Much of the decision centered on damages; plaintiffs claimed they could show damages on a class-wide basis by estimating the amount by which tuition was inflated due to the ... 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 »
Declined: Second Circuit Panel Shreds Visa and MasterCard Antitrust Settlement
A Second Circuit panel rejected the settlement reached between defendants Visa, MasterCard, and various banks, and plaintiffs, approximately 12 million merchants who alleged the principally identical network rules of Visa and MasterCard were anti-competitive in contravention of Section 1 of the Sherman Act. The Second Circuit held that class plaintiffs were inadequately represented in violation of Rule 23(a)(4) and the Due Process Clause. After nearly 10 years of ... 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 »
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 »
The Future of Class Actions: The Impact of Justice Scalia’s Death on Upcoming Rulings
There is no doubt that the death of Supreme Court Justice Antonin Scalia will have major repercussions on Supreme Court jurisprudence. A 30-year veteran of the Court, Justice Scalia was known for his originalist positions and scathing dissents. He was also the fifth conservative vote on a court that now finds itself divided, which has not only set off a bitter political fight regarding his replacement, but could have significant implications for litigants. Class ... Keep Reading »
Southern District of California Diffuses Hairdryer Class
The Southern District of California decertified a nationwide consumer product class due to material differences between the state laws applicable to the claims. The plaintiff in Czuchaj v. Conair Corp. alleged a defect in certain Conair brand hairdryers. The district court certified a nationwide class under Rule 23(b)(2) and (b)(3) for implied warranty claims under the common law and the Magnuson Moss Warranty Act. The class was defined as: All persons who purchased ... Keep Reading »
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