One of the prominent cases in which a products liability class action has been certified in recent years is Pella Corp. v. Saltzman, 606 F.3d 391 (7th Cir. 2010), involving windows that allegedly contained a design defect that allowed water infiltration. After the class was certified, a settlement was reached and approved by the
Class Action Settlements
Innovative Class Action Settlement Overturned By Sixth Circuit
By Wystan Ackerman on
Posted in Class Action Settlements
Some loyal readers of my blog may recall my June 8, 2011 blog post about the district court’s approval of the class action settlement in In re Dry Max Pampers Litigation. This case alleged that Pampers “Dry Max” diapers purportedly caused excessive diaper rash. Both the U.S. Consumer Products Safety Commission and Health Canada…
Attorneys’ Fees For Coupon Settlements Under CAFA Addressed By Ninth Circuit
By Wystan Ackerman on
Under the coupon settlement provision of the Class Action Fairness Act (CAFA), do attorneys’ fees always have to be based on the value of the coupons redeemed, or can they be based on a lodestar calculation? The Ninth Circuit recently addressed this question and held, in a 2-1 decision, that any award of fees “attributable…
Incentive Awards For Class Representatives Addressed By The Ninth Circuit
By Wystan Ackerman on
Posted in Class Action Settlements
Last week the Ninth Circuit issued a decision reversing the district court’s approval of a class action settlement, based on a provision in the agreement that, as interpreted by the court, required the class representatives to support the proposed settlement in order to qualify for receiving an incentive award. The court concluded that this presented…
You Can’t Give the Named Plaintiffs Too Sweet a Deal in a Class Settlement, The Sixth Circuit Reminds Us
By Wystan Ackerman on
Posted in Class Action Settlements
Objectors to class action settlements often argue that the proposed settlement is really benefiting the plaintiffs’ lawyers and not the class. It’s less common to see an argument that a settlement is benefiting the named plaintiffs at the expense of the class they are representing. The Sixth Circuit recently found such a problem, and reversed…
Cy Pres Relief in Class Action Settlements: Third Circuit Weighs In
By Wystan Ackerman on
Posted in Class Action Settlements
Last week the Third Circuit issued its first opinion on the subject of cy pres relief (i.e., distributions to charity instead of directly to class members) in class action settlements. There have been several federal appellate decisions over the last year on this issue. These decisions have suggested a need for greater scrutiny of cy…
Discovery By Objectors to Class Action Settlement: Montana Supreme Court Opens Door to Discovery
By Wystan Ackerman on
Posted in Class Action Settlements, Health Insurance
A recent 4-3 decision by the Montana Supreme Court allows objectors to a class action settlement to take fairly broad discovery regarding the terms of the settlement, potentially including deposing class counsel regarding the negotiations and mediation, notwithstanding a Montana statute providing for confidentiality of mediations. This decision demonstrates the importance of recognizing that, although…
Class Action Settlements Involving Cy Pres Awards: Ninth Circuit Modifies Dennis v. Kellogg Company Opinion
By Wystan Ackerman on
Posted in Class Action Settlements
In my July 19, 2012 blog post, I wrote about the Ninth Circuit’s decision in Dennis v. Kellogg Company, 687 F.3d 1149 (9th Cir. 2012). Last week, however, the Ninth Circuit withdrew its previous opinion and substituted a new opinion – Dennis v. Kellogg Company, Nos. 11-55674 and 11-55706, 2012 U.S. App.
Rule 23(b)(2) Class Action Settlements: Notice and Opt Out Rights Will Be Required if Damages Predominate and Perhaps if Damages Are Not Incidental, According to the Second Circuit
By Wystan Ackerman on
Posted in Class Action Settlements
One important distinction that Rule 23 makes between different types of class actions is that the rule does not require notice to the class or an opportunity to opt out for 23(b)(1) and (b)(2) classes, but notice and an opportunity to opt out are required for 23(b)(3) classes. See Fed. R. Civ. P. 23(c)(2)(A), (B)…
Class Action Settlement Reversed By Ninth Circuit Due To Lack of Specificity in Cy Pres Award And Excessive Attorneys’ Fees
By Wystan Ackerman on
Posted in Class Action Settlements
Over the last year or so, several circuits have reversed the approval of class action settlements, particularly where they found problems with cy pres awards and attorneys’ fee awards. (For a quick snapshot of recent trends in this area, skim through the Class Action Settlements page of my blog.) The courts of appeals have emphasized…