In 2015, Target settled a class action stemming from a massive data breach of its customers’ sensitive information. According to the settlement terms, Target agreed to pay $10 million to those affected. The Minnesota district court originally granted approval over the class and the settlement. However a lone objector filed an appeal, and the Eighth Circuit granted a limited remand because it was not satisfied the district court had conducted a “rigorous analysis” of the ... Keep Reading »
Class Action Settlement Articles
The latest class action settlement developments and trends, including news, key cases, and strategies.
Class Representatives Do Not Hold Veto Power Over Class Settlement
In In re FedEx Ground Package Sys., Inc. Employment Practices Litig., No. 3:05-CV-595 RLM, 2017 WL 632119 (N.D. Ind. Feb. 14, 2017), only one of a total of seven class representatives signed off on accepting a proposed class settlement with the defendant, FedEx. Further, the class representative who assented to the proposed class settlement later withdrew his signature once he realized that the other six representatives objected to the proposed settlement. In ... Keep Reading »
No Pick-Off, No Problem: How a Pre-Certification Rule 68 Offer Survived (Twice)
A magistrate judge in the United States District Court for the Western District of Pennsylvania denied plaintiff’s motion to strike a Rule 68 offer of judgment served prior to class certification. The Rule 68 offer in this case – unlike those at issue in numerous conflicting opinions culminating in the United States Supreme Court’s 2016 Campbell-Ewald decision – was not an attempt to “pick off” the named plaintiff because it also included the putative class members. ... Keep Reading »
A Not-So-Modest Proposal: Class Action Changes Could Have Big Impact
Like many things these days, the legal landscape is changing. One target is class action litigation. Some important new proposals have the potential to dramatically alter class actions in the near future. In particular, these changes would impact class certification and the settlement process. Rule 23 Amendments First, a spate of amendments may bring changes to Federal Rule of Civil Procedure 23. The comment period on the amendments closed on February 15th and the ... Keep Reading »
No Love For Proposed Consumer Class Settlements
Two consumer class actions recently hit a roadblock when courts denied final approval for class settlements. In In re Target Consumer Data Security Breach, the U.S. District Court for the District of Minnesota preliminarily certified a settlement class in early 2015 and approved the parties’ agreement calling for a $10 million settlement fund to be distributed to the class. Subsequently, after overruling objections, including a challenge to the adequacy of the class ... Keep Reading »
What are Interim Class Counsel and When Should They be Appointed?
Even before certification of a class under Rule 23(a)-(b), the district court has authority to appoint “interim counsel” under Rule 23(g)(3) “to act on behalf of a putative class before determining whether to certify the action as a class action.” However, as the District of New Jersey recently explained, “neither the federal rules nor the Advisory Committee Notes expressly” state the analysis used to determine when “interim counsel” should be appointed and which counsel ... Keep Reading »
Magistrate Judge Had Authority To Enter Final Judgment Without Consent Of Absent Class Members But Abused Discretion In Approving Settlement
The Ninth Circuit held that a magistrate judge was not required to obtain the consent of absent class members to approve a settlement in a Fair Debt Collection Practices Act (FDCPA) case and to enter a final judgment after certifying a nationwide injunction class. In so ruling, the court joined the Third, Seventh and Eleventh Circuits. The court also held, however, that the magistrate judge abused her discretion in approving the settlement because the injunction was ... Keep Reading »
State Law Prohibiting Class Actions Does Not Preclude Court From Maintaining Certification and Approving Settlement Agreement
The Sixth Circuit recently affirmed approval of a class action settlement agreement, holding that “a post-settlement change in the law does not alter the binding nature of the parties' settlement agreement, nor does it violate Rule 23 . . . or the Rules Enabling Act.” The plaintiffs brought a class action against their former employers, alleging violations of the Kentucky Wage and Hour Act (KWHA). After the district court certified a class, the parties reached a ... Keep Reading »
California Court Applies Strict Scrutiny to Reject Uber Class Settlement
A Northern District of California judge refused to preliminarily approve a class settlement of Uber customers who used its “Rideshare Services” in which Uber would have paid class members $28.5 million. The court was concerned about several things. First, the settlement divided the settlement fund among class members on a per capita basis, which resulted in the compensation of some members who weren’t injured at the expense of persons who had been injured. Second, ... 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 »