When the Comcast Corp. v. Behrend decision came down, my colleagues summarized the Supreme Court’s ruling. Since then, I’ve put together an analysis of the decision and its potential implications. Lexis has now published the piece as a part of its ongoing Emerging Issues Analysis series. It is available here: 2013 Emerging Issues 6992 ($)…. Continue Reading
Category Archives: Class Certification
Subscribe to Class Certification RSS FeedCan Securities Fraud Defendants Rebut Price Impact To Avoid Class Certification?
Posted in Class Certification, Commonality, Predominance, SecuritiesIn Section 10(b) securities-fraud cases based on affirmative misrepresentations, a class action cannot be certified unless investor reliance is presumed under the fraud-on-the-market theory of Basic, Inc. v. Levinson, 485 U.S. 224 (1988). In Erica P. John Fund, Inc. v. Halliburton Co., 131 S. Ct. 2179 (2011), the Supreme Court ruled that a plaintiff does… Continue Reading
Eighth Circuit Holds that a Plaintiff who Settles Individual Claims Lacks Standing to Challenge Denial of Class Certification
Posted in Appeals, Class CertificationHere’s a common scenario: After unsuccessfully moving for class certification and having a petition for review under Federal Rule of Civil Procedure 23(f) rebuffed, the plaintiff wants to take another shot at an appeal. Can the plaintiff simply settle his individual claims—subject to his right to appeal the denial of class certification—so that he has a… Continue Reading
Nip A Class Action In The Bud By Moving To Strike the Class Allegations
Posted in Class Certification, Motions PracticeOne of the reasons that companies hate class actions is that, win or lose, the defense costs are often enormous. Usually, it’s discovery that leads to eye-popping numbers on the bills—whether from law firms themselves, contract attorneys, or e-discovery vendors. But defendants have an often overlooked tool for attempting to avoid costs related to discovery—the… Continue Reading
Do the Plaintiffs Lack Standing or Are Their Claims Simply Meritless—or Both?
Posted in Adequacy, Class Action Trends, Class Certification, Commonality, Predominance, TypicalityHere’s the situation: You’re facing a class action in federal court in which the plaintiffs define the putative class so broadly as to encompass many people who weren’t injured by the alleged wrongdoing. For example, consider a false-advertising class action on behalf of “all purchasers” of a product that the vast majority of purchasers would… Continue Reading
California Trial Court Rejects “Trial by Formula” Approach to False-Advertising Class Action and Sets Aside Verdict
Posted in Class Certification, Motions PracticeIn state courts, sometimes you lose even when you win. In a recent false-advertising class action, a California Superior Court entered an order concluding that the testimony of the plaintiffs’ expert—who was the linchpin of the case for class certification and on the merits—was inadmissible, which meant that the defendant was entitled to judgment as… Continue Reading
Supreme Court Reverses Certification of Antitrust Class Action Where Class Failed To Prove That Damages Could Be Determined On A Classwide Basis
Posted in Antitrust, Class Certification, Predominance, U.S. Supreme CourtAn important and recurring issue in class actions is whether a district court must consider particular merits issues when deciding whether to certify a class under Federal Rule of Civil Procedure 23. Today, in Comcast Corp. v. Behrend (pdf), No. 11-864, the Supreme Court reversed the certification of an antitrust class action because the district court… Continue Reading
Supreme Court Denies Review In NECA-IBEW Case
Posted in Adequacy, Class Certification, Commonality, Predominance, Securities, TypicalityWe’ve been blogging about the Second Circuit’s decision in NECA-IBEW Health & Welfare Fund v. Goldman Sachs (pdf), which held that a named plaintiff in a securities fraud suit might have standing in some situations to assert class action claims regarding securities that he or she never purchased. Yesterday, the Supreme Court denied (pdf) Goldman’s petition… Continue Reading
Are Class Actions Unconstitutional? Yes (At Least Sometimes)
Posted in Class CertificationA few months ago, my colleagues Kevin Ranlett, Phil Dupré, and I began writing a six-part series for Inside Counsel on potential constitutional challenges to class-action lawsuits. The series is now complete, and so I wanted to provide readers with links to our articles. In addition to our overview piece on the subject, we have addressed… Continue Reading
Securities Fraud Defendant Rebuts Fraud-on-the-Market Presumption of Reliance
Posted in Class Certification, Motions Practice, Predominance, SecuritiesWith all of the attention on last week’s Amgen decision, another interesting decision addressing the fraud-on-the-market presumption of reliance in securities fraud actions may have escaped notice. In GAMCO Investors, Inc. v. Vivendi, S.A. (S.D.N.Y. Feb. 28, 2013), Judge Scheindlin found that the defendant had rebutted the presumption of reliance as to a group of related… Continue Reading
Can Plaintiffs Evade The FDCPA’s Cap on Total Statutory Damages in a Class Action by Filing Multiple, Gerrymandered Class Actions?
Posted in Class Certification, Motions Practice, SuperiorityThe Fair Debt Collection Practices Act (FDCPA), which regulates the conduct of debt collectors, authorizes plaintiffs suing over violations to recover statutory damages of up to $1,000. Because these amounts can rapidly add up to exorbitant numbers in a class action for very minor, technical violations, Congress capped the total amount of statutory damages that… Continue Reading
Lipton v. Chattem, Inc.: Federal District Court Denies Certification On Adequacy Grounds
Posted in Adequacy, Class Certification, Predominance, SuperiorityThe requirement that the named plaintiff must be an adequate class representative is not often the basis for denying class certification. But a recent decision from the Northern District of Illinois in a false-advertising class action illustrates the importance of taking discovery on facts that are relevant to the adequacy standard. In Lipton v. Chattem,… Continue Reading
Supreme Court Holds that Securities Fraud Plaintiffs Need Not Show Materiality at Class Certification
Posted in Class Certification, SecuritiesToday, in Amgen Inc. v. Connecticut Retirement Plans and Trust Funds, No. 11-1085, the Supreme Court held that proof of materiality is not a prerequisite for class certification in a securities fraud class action under Section 10(b), even though materiality is a predicate of the fraud-on-the-market presumption of reliance. The opinion for the majority of… Continue Reading
Seventh Circuit: A “Shapeless, Free-Wheeling” Trial Plan Is Grounds for Decertifying Class
Posted in Class Certification, Employment, Predominance, Rule 23(b)(2), SuperiorityThe Seventh Circuit’s recent decision in Espenscheid v. DirectSat USA, LLC—authored by Judge Posner—is full of good news for employers and other class-action defendants. The case is a hybrid collective action under the Fair Labor Standards Act (pdf) and opt-out Rule 23(b)(3) class action asserting state-law wage-and-hour claims. The plaintiffs—a group of home satellite-dish installers who… Continue Reading
Federal District Court Says That Plaintiffs Bringing Representative Claims Under California’s Private Attorney General Act Don’t Have To Seek Class Certification
Posted in Class Certification, EmploymentThe California Supreme Court held in Arias v. Superior Court that a plaintiff may bring a representative action on behalf of himself and other employees to recover civil penalties under California’s Private Attorney General Act (“PAGA”) without meeting California’s class-certification requirements. The court reasoned that, unlike a class action, where the plaintiff is suing on behalf… Continue Reading
Can Members of a Mandatory Class Action Opt Out?
Posted in Adequacy, Class Action Settlements, Rule 23(b)(1), Rule 23(b)(2)A recent decision from the Delaware Supreme Court is a reminder that the members of a mandatory class—one in which the class isn’t guaranteed opt-out rights—sometimes may be given the right to opt out in order to pursue their own individual actions. The decision, In re Celera Corp. Shareholder Litigation (pdf), addressed a class settlement of… Continue Reading
Federal Court Grants Motion to Strike Class Allegations in TCPA Case
Posted in Ascertainability, Class Certification, Motions PracticeWe’re big fans of filing an early motion to strike class allegations when it’s apparent from the pleadings that the class definition is fatally flawed. Why should a defendant be forced to submit to the wringer of class discovery before taking a swing at defeating class certification? A recent case involving Office Depot illustrates the… Continue Reading
Class Certification Denied in Skinnygirl False-Advertising Case Because Class Representative Didn’t Rely on Label
Posted in Adequacy, Class Certification, TypicalityPlaintiff Christopher Rapczynski testified that he purchased Skinnygirl Margarita mix “because I love my wife,” she “said she liked it,” and she “has my three children and works very hard.” Those all may be good reasons for a nice Valentine’s Day present, but not for bringing a class action. As the Southern District of New… Continue Reading
Can a Product-Liability Class that Is Full of Uninjured Members Be Certified?
Posted in Class Certification, Predominance, SuperiorityThe answer is a resounding “no,” says Judge Cormac Carney of the Central District of California in a recent significant decision in litigation over the third generation Toyota Prius and 2010 Lexus HS250h vehicles (In re Toyota Motor Corp. Hybrid Brake Mktg., Sales Practices & Prods. Liab. Litig. (pdf), No. SAML 10-2172-CJC (C.D. Cal. Jan. 9,… Continue Reading
How Much Discovery From Opt-Ins in FLSA Collective Actions Should Businesses Seek?
Posted in Class Certification, Employment, Motions PracticeA recent federal court decision has addressed the knotty issue of a defendant’s right to discovery in an FLSA collective action from the individuals who opt into the class after it is conditionally certified but before the court decides whether to grant final certification. The case, Scott v. Bimbo Bakeries, USA, Inc. (pdf), No. 10-3154 (E.D…. Continue Reading
Balthazor: Individualized Questions as to Consent Torpedo Attempt to Certify TCPA Class Action
Posted in Class Certification, PredominanceReaders of this blog are likely familiar with the Telephone Consumer Protection Act (“TPCA”), the law that prohibits certain types of calls using an automatic telephone dialing system or prerecorded message. The plaintiffs’ bar has filed numerous class actions seeking statutory damages under the TCPA. Businesses facing these actions should be alert for opportunities to… Continue Reading
Expelliarmus! Eleventh Circuit Disarms False-Advertising Class Action Against Makers of Fantasy Video Game
Posted in Ascertainability, Class Certification, PredominancePlaintiffs who wish to bring product-liability and consumer-fraud class actions against businesses often overreach when defining the proposed class in order to raise the stakes—and hence the settlement pressure—on the defendant. A recent unpublished decision by the Eleventh Circuit, Walewski v. Zenimax Media, Inc. (pdf), No. 12-11843, is yet another example of the growing consensus rejecting… Continue Reading
Class Action Plaintiffs Can’t Have It Both Ways When Opposing Motions to Compel Arbitration
Posted in Arbitration, Class Certification, Motions Practice, Numerosity, Predominance, TypicalityIn litigation—as in war—it is natural to focus on winning today’s skirmish and to defer planning for battles that might not happen for weeks or months. But that shortsightedness can lead to strategic blunders—as one class action plaintiff suing Capital One Bank and credit counseling agency InCharge Debt Solutions recently learned the hard way. In King… Continue Reading
New Jersey Federal Court OKs Nationwide Class Under NJ Consumer Law
Posted in Class CertificationA New Jersey district judge has certified a nationwide class to pursue claims under the New Jersey Consumer Fraud Act (NJCFA) (pdf), in conflict with the decisions of other courts that have refused to permit nationwide classes to proceed under the law of a single state. The plaintiffs in Kalow & Springut, LLP v. Commence… Continue Reading