In the wake of a nationwide class action settlement of litigation against a manufacturer of a test claimed to accurately predict the gender of a fetus, the State of California (“State”) brought an enforcement action against the manufacturer for restitution for California citizens who purchased the test, as well as for civil penalties and injunctive relief. The defendant manufacturer removed to federal court and sought an injunction under the Anti-Injunction Act, arguing ... Keep Reading »
Class Action Settlement Articles
The latest class action settlement developments and trends, including news, key cases, and strategies.
In a 5-4 decision, the Texas Supreme Court held that the cy pres provision of a class action settlement was not subject to the state’s Unclaimed Property Act. After the trial court certified a class of subcontractors whose pay allegedly had been improperly docked by the defendant contractor, the parties settled the case on a class-wide basis agreeing that the defendant would issue refund checks to the aggrieved class members. The settlement contained a cy pres ... Keep Reading »
The robustness of the rule preventing non-settling defendants from objecting to a class settlement has received a boost from the Second Circuit. The class settlement at issue involved the claims of investors against a hedge fund manager for damages and restitution of lost funds as a result of Madoff’s Ponzi scheme. Only one provision of the settlement was at stake: whether the settlement could allow class members to submit to the jurisdiction of the district court for ... Keep Reading »
In Stephens, two former pilots brought a putative class action lawsuit against their employer airline and their retirement plan, alleging that a delay in paying retirement benefits and failure to pay interest during the delay violated the Employee Retirement Income Security Act (“ERISA”). Defendants maintained that the delay was necessary to calculate the amount of benefits where a beneficiary elected to receive a lump sum rather than a monthly annuity. After the ... Keep Reading »
Following the Supreme Court’s 2012 recognition of concurrent federal and state jurisdiction over Telephone Consumer Protection Act (“TCPA”) class actions in Mims v. Arrow Financial Services, federal courts have issued numerous decisions addressing certification of TCPA classes that may be of broader interest to class action lawyers. (By way of example, see our May 20, 2014 post: Ohio District Court Strikes Impermissible "Fail-Safe" Class Allegations.) Two recent TCPA ... Keep Reading »