Class Action Settlement

A class action is a type of legal action where a representative individual or group of individuals can bring a claim on behalf of a larger group or class who share a common legal interest.
News & Analysis as of

Four Takeaways from the Ongoing Air Cargo Price-Fixing Litigation

Nippon Cargo Airlines Co. Ltd last week agreed to pay $36.55 million to settle claims that it conspired with other airlines to fix rates for air cargo services in the early 2000s. Two dozen airlines have settled in the...more

The Rules Advisory Committee Study Agenda – Rule 23(e)

Amending Rule 23 would add clarity to the settlement process and teeth to the protection of absent class members. But to solve the real class settlement process, the Advisory Committee will have to look at why so many weak...more

Insurer Agrees to $140 Million Settlement in ERISA Case Challenging Revenue Sharing Practices

Nationwide Life Insurance Co. has agreed to settle ERISA fiduciary breach claims brought on behalf of a class of retirement plan trustees that purchased annuity contracts and/or services from Nationwide for their plans....more

Clear Sailing Ahead For Class Counsel in California Settlement

In Laffitte v. Robert Half International, Inc., No. BC321317, ___ Cal.App.4th ___ (Oct. 29, 2014; pub. ord. Nov. 21, 2014), the California Court of Appeal affirmed a $19,000,000 settlement that included an attorneys’ fee...more

What Will Be in the Coming Class Action Amendments?

I’ve written a little so far about the fact that Rule 23 is likely to undergo revision in the next few years. Last week Judge Robert Michael Dow, who is a member of the Advisory Committee on the Rules of Civil Procedure’s...more

Ninth Circuit Holds California Can’t Double-Dip By Seeking Restitution for Citizens Bound By Class Settlement

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...more

Now That That’s Settled: The Status of Class Action Settlements in the Seventh Circuit after Pella, Radioshack and NBTY

Over the last several months, Judge Richard Posner has authored a triumvirate of opinions reversing the district courts’ approval, over objections, of consumer class action settlements—Eubank v. Pella Corp., 753 F.3d 718 (7th...more

State Enforcement Actions Following Class Settlements Addressed By Ninth Circuit

A recent Ninth Circuit decision caught my eye. It addressed whether a state enforcement action can be barred by a class action settlement on the same issue, finding that it was barred in part, to the extent the suit sought...more

Credit Crunch Digest - October 2014

This issue of the Credit Crunch Digest focuses on estimated Forex-related fines and exposure; requests by U.K. authorities for additional funding to investigate rate-rigging and Forex manipulation; a guilty plea in connection...more

The Ninth Circuit Holds That Res Judicata Bars State Recovery of Restitution for Members of a CAFA-Compliant Class Action

In California v. Intelligender, LLC, the Ninth Circuit ruled that final judgment in a CAFA-compliant class settlement barred the State of California from seeking restitution on behalf of members of the settlement class for...more

California Appellate Court Rejects Class Action Settlement Due to Excessive Attorney Fees

Pigs get fat and hogs get slaughtered, so the saying goes. As we’ve noted before on Oct. 7, June 5, and Dec. 18, courts are starting to examine attorney fee awards in class action settlements much more closely, and the...more

Allocation Methodology

This article will focus on the due process aspect of allocation methodologies in mass tort class actions and multidistrict litigations. This typically involves the substantive right to allocation and procedurally how the...more

Illinois Court of Appeals Decision Serves as Caution to Policyholders Seeking Coverage for Underlying Settlements

The Illinois Court of Appeals recently issued an opinion providing guidance for policyholders seeking insurance coverage under commercial liability policies for settlements to resolve class actions asserted against them. In...more

Successful Motions to Dismiss Securities Class Actions, A Review of What Worked in 2014

Motions to dismiss have been called “the main event” in securities class actions. They are filed in over 90% of securities class actions and they result in dismissal close to 50% of the time they are filed. In contrast, out...more

Eleventh Circuit Requests Assistance in Interpreting Consent-to-Settle Provision

Most cases in the United States settle. Insurers are well-aware of this fact. Thus, insurance companies employ consent-to-settle provisions in insurance policies to limit and control their liability in the likely event of a...more

Judge Posner’s Scathing Critique of a Proposed Coupon Settlement

The topic of potential self-dealing in class action settlements has been written about extensively. While class counsel may be fully aligned with the class in seeking to maximize the settlement, their interests diverge...more

Amendments to Federal Class Action Rules May be on the Horizon: Settlement, Issues Classes, and Notice Requirements on the Front...

Class action settlements, certification of issues classes, and class notice requirements are among the topics that may be the subject of upcoming proposed amendments to Federal Rule of Civil Procedure 23. On the agenda for...more

TCPA Risks Increase for the Financial Services Industry

Companies in the financial services industry are being targeted in lawsuits brought under the Telephone Consumer Protection Act (TCPA). Record-setting class action settlements like the recent $75 million settlement involving...more

When Did You Last Update Your Background Check Materials? Maybe It’s Time.

Dollar General just agreed to pay $4 million to settle a class action background check case based on its alleged violations of the Fair Credit Reporting Act (FCRA). Marcum v. Dolgencorp, Inc., Civil Action No. 3:12cv108...more

Dr. Reddy’s Laboratories Settles on Eve of Trial – Agrees to Cooperate with Plaintiffs

Much has happened since our last post on the Nexium “pay for delay” class action lawsuit. Jury selection began in the District of Massachusetts on Monday, October 20, 2014. The day prior, one of the generic drug makers, Dr....more

Courts Evaluating Class Settlement with Increased Scrutiny

The potential for enormous financial exposure for defendants in class actions often results in settlement, particularly after class certification. Courts have traditionally granted “rubber-stamp” approval of such settlements,...more

Settlement of Junk Fax Class Action Denied Due to Likelihood of Low Payout to Class Members

In Small v. Target Corp., No. 13-cv-01509 (D. Minn. Oct. 8, 2014), the District Court recently denied preliminary approval of a class action settlement due to concerns regarding the use of a “reverter” provision in the...more

Just the Fax: Illinois Appellate Court Concerned That TCPA Settlement Between Insured and Class Action Plaintiffs May Be Collusive

An all too familiar scenario: an insurer believes there is no coverage for a claim, but has a duty to defend its insured. In these situations, an insurer often pays for the insured’s independently-selected defense counsel and...more

The Incredible Shrinking Red Bull Refund: How Should Courts Verify Class Membership?

A recent class action settlement has brought fresh attention to two age-old questions. The first: does Red Bull actually give you wings? The second: how carefully should courts screen out bogus claimants from proposed classes...more

Not So Fast – Seventh Circuit Rejects Radio Shack’s FACTA Class Action Settlement

In Redman v. RadioShack Corp., 2014 U.S. App. LEXIS 18181 (7th Cir. Sept. 19, 2014), the Seventh Circuit Court of Appeals joined a recent line of cases rejecting proposed class action settlements because the value provided to...more

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