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 Settlements
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…
Cy Pres Distribution of Class Action Settlement Funds: First Circuit Provides New Guidance
By Wystan Ackerman on
Posted in Class Action Settlements
Last week, in In re Lupron Marketing & Sales Practices Litigation, Nos. 10-2494, 11-1329, 2012 U.S. App. LEXIS 8263 (1st Cir. Apr. 24, 2012), the First Circuit issued a significant opinion providing substantial guidance on distribution of excess funds in a class action settlement on a cy pres basis. This situation typically occurs when…
Insurance Class Action Settlements: Eleventh Circuit Approves An Interesting New Approach
By Wystan Ackerman on
Posted in Class Action Settlements
Insurance companies often view class actions as meritless suits driven by plaintiffs’ lawyers and perhaps one or two disgruntled insureds. But they often want to resolve small disputes with their customers, and give insureds the benefit of the doubt. After all, keeping insureds happy and retaining their business year after year is very important. So…
Class Action Settlements: New Ninth Circuit Opinion Vacating Approval of Settlement Teaches Some Lessons
By Wystan Ackerman on
Posted in Class Action Settlements
The Ninth Circuit recently vacated the approval of a class action settlement where the class received non-monetary relief and $100,000 of cy pres awards, and class counsel was awarded $800,000 in attorneys’ fees. The Center for Class Action Fairness objected, focusing on the size of the attorneys’ fees award in comparison to the benefit to…
Farmers Insurance Announces Settlement of Nationwide Med-Pay and PIP Class Action
By Wystan Ackerman on
Posted in Auto Insurance, Class Action Settlements
On August 5th, Farmers Insurance announced a settlement of a nationwide class action in the District Court of Canadian County, Oklahoma, involving med-pay and PIP (personal injury protection) benefits under auto insurance policies. It was reported in a number of media sources, including the Insurance Journal. A class had been certified and the certification…
Injunctions of State Court Proceedings Pending Approval of a Proposed Class Action Settlement in Federal Court: Injunction Issued in Chinese Drywall MDL
By Wystan Ackerman on
Posted in Class Action Settlements, Injunctions
When a federal court grants preliminary approval to a proposed class action settlement, can it enjoin parallel state court proceedings while the notice and final approval process take place? Judge Fallon of the Eastern District of Louisiana recently found such an injunction appropriate in In re Chinese-Manufactured Drywall Products Liability Litigation, 2011 U.S. Dist.
Proposed Settlement of Consumer Class Action Includes a Ban on Future Class Actions
By Wystan Ackerman on
Posted in Class Action Settlements
I found very interesting a recent post by Russell Jackson on his Consumer Class Actions and Mass Torts Blog, discussing a proposed settlement in In re Dry Max Pampers Litigation, which includes a ban on future class actions. This MDL involved claims that Dry Max diapers, a relatively new product introduced by Pampers, purportedly…
Class Action Settlement by Farmers Insurance: Too Onerous for Class Members?
By Wystan Ackerman on
Posted in Class Action Settlements
A recent article in the Los Angeles Times regarding a class action settlement by Farmers Insurance suggests that there is something improper about a class settlement that requires class members to submit a form under penalty of perjury, and allowing money that is not paid out to revert to the insurer:
Here’s how to make
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