In class actions involving more than one defendant and at least one local defendant, two exceptions to jurisdiction under the Class Action Fairness Act (CAFA) potentially come into play. The “home state” exception applies if two-thirds or more of the proposed class members and the “primary defendants” are citizens of the state where suit was
First Circuit
First Circuit Rejects Class Action Settlement Based on Potential Intra-class Conflict, But Approves Named Plaintiff Incentive Awards
By Wystan Ackerman on
Posted in Class Action Settlements
When negotiating a class action settlement, lawyers on both sides may need to consider whether subgroups within the class need to be separately represented by different counsel. The First Circuit recently reached that conclusion in Murray v. Grocery Delivery E-Services USA Inc., 2022 WL 17729630 (1st Cir. Dec. 16, 2022).
Murray involved three different…
Class Certification Improper Where 10% of Class Members Uninjured, Explains the First Circuit
By Wystan Ackerman on
Posted in Class Certification Standards
The First Circuit recently addressed an issue of broad significance in class action law. It explained how a class cannot be certified when there are more than a small number of uninjured class members, and how a defendant must be allowed to demonstrate on an individual basis that class members were not injured.
United Food…
Offers of Judgment in Class Actions: First Circuit Suggests Sending a Bank Check
By Wystan Ackerman on
Posted in Defense Strategy
There has been a lot of activity in the federal courts of appeals recently regarding the use of offers of judgment to named plaintiffs in class actions. The Fifth and Seventh Circuits recently held that an unaccepted Rule 68 offer to the named plaintiff for full relief will not render a putative class action moot…
Can A Certified Class Include Uninjured Parties? First Circuit Majority Says “Yes,” In Some Instances
By Wystan Ackerman on
Posted in Class Certification Standards, Defense Strategy
One of the “hot” issues in class actions today is whether, or to what extent, a class can be defined to include members who were not injured, and do not have standing to sue. The First Circuit recently addressed this in a 2-1 decision, concluding that “class certification is permissible even if the class includes …
Retained Asset Account ERISA Class Action: First Circuit Overturns Judgment in Favor of Plaintiffs
By Wystan Ackerman on
Posted in Life Insurance
One of the hot areas of class action litigation against life insurers over the last few years has been the use of retained asset accounts, whereby the insurer pays life insurance proceeds not by a lump sum but instead by providing beneficiaries with access to an interest-bearing account from which the funds can be drawn. …
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…