Topic: Settlement
It Pays to Over-Think Class Definitions and Release Provisions in Class Action Settlement Agreements
Limiting exposure to future claims is a crucial aspect of settling class action litigation. A recent opinion out of the Northern District of Georgia serves as a reminder that the definitions of settlement classes and released claims in class action settlement agreements warrant close attention. First, the background. In 2015, a customer filed a putative […]
A Roadmap for Addressing Objections to Class Settlement
Earlier this year, the Fourth Circuit published an updated roadmap for addressing objections to class settlement. The decision, 1988 Trust for Allen Children Dated 8/8/88 v. Banner Life Insurance Co., 28 F.4th 513 (4th Cir. 2022), will be an important resource for parties hoping to bypass objections en route to settlement. It will also be […]
How do you settle future claims for an indeterminate class amidst scientific uncertainty?
While Roundup herbicide may be able to kill unwanted weeds, Monsanto, the maker of Roundup, is having a much harder time weeding out unwanted lawsuits. Recent cases alleging Roundup caused cancer have resulted in verdicts of tens of millions of dollars per plaintiff. Now Monsanto’s attempt to round up future claims into a class action […]
Supreme Court, over Thomas Dissent, Dodges Cy Pres Mechanism in Class Settlement
Last year in this space, we reported on the continuing debate concerning the use of cy pres awards in class action settlements. Since 2013, Chief Justice Roberts has provided cautionary comments about this practice. See Marek v. Lane, 134 S. Ct. 8 (2013). We also reported on the Ninth Circuit’s approval of a cy pres […]
Collective Action and Class Action Settlements Require Careful Consideration
We often report in our monthly digests on cases asserting claims under the federal Fair Labor Standards Act (FLSA) and state wage and hour laws. These cases generally involve claims that a company, often a restaurant or delivery service company, failed to pay overtime, used an improper “tip pool,” or treated workers as independent contractors, […]
Business Court Approves Disclosure-Only Settlement, But Postpones Consideration of Attorneys’ Fees Request
Those who follow class action law probably will be familiar with In re Trulia (2016), the seminal decision of the Delaware Court of Chancery that put the brakes on disclosure-only settlements. Before Trulia, these controversial settlements were ubiquitous in deal litigation, in which shareholders of a company file a class action lawsuit seeking to stop […]
Cy Pres Settlements Under Attack Again
A good while ago, we reported in this space, about so-called “cy pres” settlements. We highlighted the Chief Justice’s cautionary comments about this practice – under which third parties, not class members, are compensated by defendants. See Marek v. Lane, 134 S.Ct. 8 (2013). After the Ninth Circuit recently approved a cy pres settlement, In […]
The Case of the $5 Footlong*
For what appears to have been a frivolous lawsuit, In re: Subway Footlong Sandwich Marketing and Sales Practices Litigation generated an interesting opinion from the Seventh Circuit full of class-action issues. The case originated when an Australian teenager posted a photo of an 11-inch Subway sandwich, with a tape measure, on his Facebook page. Coming in […]
Judge Gorsuch’s Class Action Opinions After Shook
Today we continue our analysis of Judge Gorsuch’s class action opinions from the Tenth Circuit in an effort to better understand how he may rule if confirmed for the Supreme Court. Last week, we examined Judge Gorsuch’s decision in Shook v. Board of County Commissioners, and we will take up his remaining class action opinions below. […]
Business Court Warns of Enhanced Scrutiny for Disclosure-Only Merger Settlements
We have previously commented about “disclosure only” settlements in class action merger cases, and the increasing scrutiny provided to them by courts here and in Delaware. Judge Bledsoe entered the fray yesterday, approving a settlement of litigation involving the merger of Yadkin Financial Corporation and NewBridge Bancorp in a 44-page order. In a stark preamble […]