Marshall v. Holiday Magic, Inc.

What is the standard for allowing a class member to challenge a settlement as unfair?

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The Ninth Circuit held that if the rights of a small minority of class members are negatively impacted by a settlement that benefits the class as a whole, and the minority are given the opportunity to opt out after disclosure of the terms of the settlement, then the minority will not be allowed to appeal the settlement as unfair to them when they should have opted out to better protect their rights. The appeals process delays final settlement and payment to the majority of the class members, and a minority who has other avenues to protect their rights should not be allowed to hold up the process.

Case and case summary are also available at: http://www.mlmlegal.com/legal-cases/Marshall_v_HolidayMagicInc1977_550F2d1173.php

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Published In: Civil Procedure Updates, MLM / Direct Sales Updates, MLM Consulting / Network Marketing Updates

Reference Info:Federal, 9th Circuit, California | United States

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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