Takeaway: The law surrounding “coupon” settlements under 28 U.S.C. § 1712 of the Class Action Fairness Act (“CAFA”) continues to evolve. Under section 1712(e), courts must: (1) apply “heightened scrutiny” when approving...more
The U.S. Court of Appeals for the Ninth Circuit in McKnight v. Hinojosa, No. 21-16623, 2022 WL 17333820 (9th Cir. Nov. 30, 2022) considered whether the proposed class action settlement was a "coupon settlement" and therefore...more
Ninth Circuit decision prohibits use of lodestar-only methodology to calculate a fee award for class action settlements involving coupons. The decision contemplates coupon class action settlements where coupons are...more
It’s no secret that the Justice Department and state Attorneys General don’t like coupon settlements in class actions. Since 2007, groups of state AGs have been objecting regularly to coupon settlements that would force...more
Companies may be inclined to offer “coupons” or similar benefits to settle consumer class actions. While offering coupons is permissible, in In re Easysaver Rewards Litigation, No. 16-56307, 2018 U.S. App. LEXIS 28000 (9th...more
A recent settlement by retailer Kmart Corp. illustrates the breadth of practices in the healthcare space that the government considers to be illegal kickbacks that violate the False Claims Act (FCA). The U.S. Department of...more
In In Re Southwest Airlines Voucher Litigation, Case No. 13-3264 (7th Cir. Aug. 20, 2015), the U.S. Court of Appeals for the Seventh Circuit upheld a fee award to class counsel in a class action that resulted in a “coupon...more
In In re: HP Inkjet Printer Litigation, Case No. C05-3580-JF, 2013 WL 1986396 (9th Cir. May 15, 2013), the Ninth Circuit recently held that attorney fee awards in class settlements involving coupons must be “attributable to”...more