News & Analysis as of

Incentive Awards Settlement

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

Faegre Drinker Biddle & Reath LLP

First Circuit Rejects Classwide Settlement, Finds That Would-Be Class Representatives Could Not Adequately Represent Subclasses...

The First Circuit recently reversed the District of Massachusetts’s approval of a settlement award that improperly lacked any subclasses within the 4.8-million-person putative class, finding it “too difficult to determine...more

Bradley Arant Boult Cummings LLP

Circuit Split on Incentive Payments to Class Representatives Deepens

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

Faegre Drinker Biddle & Reath LLP

Eleventh Circuit Denies Petition for Rehearing, Permits Split Decision Barring Incentive Awards to Stand

The Eleventh Circuit recently decided not to rehear en banc a panel decision which held that a TCPA class action settlement could not include an incentive award for the lead plaintiff.  See Johnson v. NPAS Sols., LLC, No....more

Pierce Atwood LLP

A Circuit Split on Incentive Awards

Pierce Atwood LLP on

A few months ago, I posted about a surprising decision of a divided panel of the Eleventh Circuit which held that incentive awards (a/k/a “service awards”) in class action settlements are prohibited by arguably analogous...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

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

BakerHostetler

Eleventh Circuit Invalidates Class Action Individual Incentive Awards

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Yes, you read that right. Class action litigation is fueled largely by the availability of often large attorney fee awards. ...more

Cozen O'Connor

Eleventh Circuit Goes It Alone by Prohibiting Class Representative Incentive Awards

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On September 17, 2020, in a unexpected challenge to conventional class and collective action practice, the Eleventh Circuit held that settlement incentive awards, which compensate and reward class representatives for bringing...more

BakerHostetler

Court Approves Overtime Class Settlement After Initially Rejecting It

BakerHostetler on

We wrote last May about the court’s rejection of a $1.75 million settlement in Cruz v. Sky Chefs, Inc., Case No. C-12-02705 DMR (N.D. Cal. 2014) [May 27, 2014]. The court’s decision related to the settlement of...more

BakerHostetler

California District Court Rejects Overtime Settlement Over $50,000 Incentive Awards

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Large incentive awards continue to jeopardize class action settlements. We wrote on February 14 about recent cases in which Circuit Courts rejected settlements due to disproportionate incentive awards. A recent case from the...more

Zelle  LLP

Incentive Award Guidance From Recent Class Actions

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Class representatives play a vital role in competition and other class actions. They participate in the litigation process as an individual plaintiff would — devoting their time and resources to the case, and undertaking...more

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