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 »
Class Action Settlement Articles
The latest class action settlement developments and trends, including news, key cases, and strategies.
Lawyers Sanctioned for Seeking to Settle Federal Court Class Action in State Court
Lawyers seeking to settle class actions pending in federal court by dismissing and refiling in state court beware! In two recent orders, a federal judge in the Western District of Arkansas ruled that the attorneys representing a class and defendants alike violated Rule 11 and abused the judicial process by this practice. The court sanctioned the lawyers for the class in the form of a reprimand. It retreated from a formal sanction of the defendants’ lawyers because it was ... Keep Reading »
Eleventh Circuit’s Liberal Reading of Bonner Mall a Game Changer for Class Actions?
An Eleventh Circuit panel recently vacated two district court orders after sending the parties to mediation, and after the parties’ conditioned settlement on vacatur of the orders. In Hartford Casualty Insurance Company v. Crum & Forster Specialty Insurance Company, after being ordered to mediation a second time by the appellate panel, the parties reached a settlement contingent on the district court’s vacating its orders on summary judgment and attorney’s fees. On ... 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 »
…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 »
2016 Carlton Fields Class Action Survey Reveals Important Trends in Class Action Management
The fifth annual edition of the Carlton Fields Class Action Survey has just been released, and in this year’s survey corporate counsel report that class action spending has increased after four consecutive years of decline. Spending is also projected to increase in 2016. This marks a key turning point. The Numbers Across industries, the companies surveyed report that they spent $2.1 billion on class action lawsuits in 2015. The number of companies facing at least one ... Keep Reading »
Supreme Court Rules Unaccepted Rule 68 Offer of Judgment Cannot Moot Class Action
A divided Supreme Court ruled today in Campbell-Ewald Co. v. Gomez, No. 14-857, that an unaccepted Rule 68 offer of judgment by a defendant cannot moot a putative class action. The decision settles a reserved question from Genesis HealthCare Corp. v. Symczyk and resolves a circuit split on the issue. Justice Ginsburg’s majority opinion holds that an unaccepted Rule 68 settlement offer “has no force” and like other unaccepted contract offers, “creates no lasting right or ... Keep Reading »
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