Over the last several years, federal courts of appeals have been closely scrutinizing cy pres distributions to charitable organizations in class action settlements. This includes opinions by the First Circuit, Third Circuit and Ninth Circuit. The general thrust of these decisions is that cy pres should be used sparingly, and the charitable organization
cy pres
Class Action With Small Stakes And Potential Cy Pres Remedy Addressed By Seventh Circuit
By Wystan Ackerman on
Posted in Class Certification Standards
Judge Posner of the Seventh Circuit, a prolific writer of class action opinions in recent years, recently wrote a new decision addressing whether a class action with small stakes could properly be decertified. The decision includes some extensive commentary on how such a case might be resolved. Notably, this was a case where the defendant…
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…
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.
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…