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BakerHostetler

New Challenges to Incentive Awards for Class Representatives Invite Supreme Court Review

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Last week, the U.S. Court of Appeals for the Second Circuit issued a decision that highlights a growing disagreement among federal appellate courts as to whether class action settlements may include a cash incentive award to...more

Bradley Arant Boult Cummings LLP

Circuit Split on Incentive Payments to Class Representatives Deepens

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Two years ago, in Johnson v. NPAS Solutions, LLC, the Eleventh Circuit upended decades’ worth of precedent by categorically forbidding incentive payments to class representatives in class action settlements...more

Butler Snow LLP

The Beginning of the End for the Class Representative Incentive Award? (Part II)

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In Part I of this post, we examined the problem with incentive awards to class representatives and the conflict of interest that it creates between class representatives and the class they seek to represent. Recently, the...more

Butler Snow LLP

The Beginning of the End for the Class Representative Incentive Award? (Part I)

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Time and time again this scenario repeats itself and necessarily begs the question: Who is supposed to be protecting the interests of the absent class members in these settlements—class counsel who is taking more than 30% of...more

McGuireWoods LLP

Sixth Circuit Widens Circuit Split On Class Action Incentive Payments

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On September 18, 2020, we wrote an article discussing how the United States Court of Appeals for the Eleventh Circuit in Johnson v. NPAS Solutions, LLC, No. 18-12344 (11th Cir. 2020) held that class action incentive payments...more

JAMS

Eleventh Circuit Decision Prohibits Incentive Awards for Class Reps

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On September 17, 2020, the U.S. Court of Appeals for the Eleventh Circuit issued a bombshell decision: A court may not award an incentive fee to a class representative. This is surprising, if not shocking, as it is standard...more

Goodwin

11th Circuit Overrules Incentive Award in Class Action Settlement

Goodwin on

On September 17, 2020, the Eleventh Circuit Court of Appeals (Eleventh Circuit) issued an important decision regarding incentive payments in class-action settlements in Telephone Consumer Protection Act (TCPA) cases. In...more

Faegre Drinker Biddle & Reath LLP

A Divided Eleventh Circuit Holds that Incentive Awards are Prohibited

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In a decision that may have far-reaching consequences, a divided panel of the Eleventh Circuit ruled that incentive awards to named plaintiffs—which are routine in TCPA and other class action settlements—are improper. See...more

Lathrop GPM

Eleventh Circuit Breaks “New Ground” for Common Class Action Practice: Incentive Awards Banned by 1880s Supreme Court Precedent

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In a surprising opinion, the Eleventh Circuit politely pointed out that “The Emperor has no clothes.” A common practice in class actions is for class representatives to claim and settling defendants to pay incentive awards....more

Foley & Lardner LLP

Divided Eleventh Circuit Panel Bars Incentive Awards for Class Representatives in Class Action Settlements

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While not authorized by Rule 23, incentive awards to class representatives are a common feature of class action settlements. Nevertheless, a divided Eleventh Circuit panel ruled last Thursday that such payments are strictly...more

Bradley Arant Boult Cummings LLP

11th Circuit Forbids Incentive Payments

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You need to read Johnson v. NPAS Solutions, LLC. This recent decision from the 11th Circuit fundamentally changes the rules of obtaining approval for class action settlements. Johnson’s introduction emphasizes that the...more

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