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Tag Archives: Adequacy

Class-Action Plaintiffs Must Offer Evidence Showing That They Meet Class-Certification Requirements

Posted in Adequacy, Class Certification, Predominance, Securities

A recent decision denying certification of a securities-fraud class action underscores that plaintiffs must prove with evidence that they satisfy the requirements of Federal Rule of Civil Procedure 23, not merely allege that they do so or promise that they can. The decision in In re Kosmos Energy Limited Securities Litigation arose from a class action… 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, Typicality

Here’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

Supreme Court Denies Review In NECA-IBEW Case

Posted in Adequacy, Class Certification, Commonality, Predominance, Securities, Typicality

We’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

Lipton v. Chattem, Inc.: Federal District Court Denies Certification On Adequacy Grounds

Posted in Adequacy, Class Certification, Predominance, Superiority

The 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

Plaintiffs Seek to Revive Securities Fraud Class Actions Under Second Circuit’s “Class Standing” Doctrine

Posted in Class Action Trends, Securities

I previously blogged about the Second Circuit’s troubling decision in NECA-IBEW Health & Welfare Fund v. Goldman Sachs & Co. (pdf), 693 F.3d 145 (2d Cir. 2012), which invented a “class standing” doctrine allowing a named plaintiff in a class action to assert Securities Act claims regarding securities that he or she never purchased. In the… 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

Class Certification Denied in Skinnygirl False-Advertising Case Because Class Representative Didn’t Rely on Label

Posted in Adequacy, Class Certification, Typicality

Plaintiff 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

Do Class Counsel Owe Fiduciary Duties to Absent Class Members Before Class Certification (and Should Defendants Care)?

Posted in Adequacy, Class Action Trends, Class Certification

According to an interesting student note that will soon be published in the Stanford Law Review, the answer to both questions is “yes.” Specifically, the would-be class counsel must “protect[] the substantive legal rights of putative class members . . . from prejudice” “resulting from the actions of class counsel.” The implications for defendants opposing… Continue Reading

Ninth Circuit Upholds “Provisional” Class Certification for Entry of a Preliminary Injunction in TCPA Class Action

Posted in Adequacy, Ascertainability, Class Certification, Rule 23(b)(2)

The Ninth Circuit’s recent decision in a TCPA case—Meyer v. Portfolio Recovery Associates (pdf)—involves several interesting issues for class-action practitioners even outside the TCPA setting. First, a bit of background. In Meyer, the plaintiff sued a debt collector under the TCPA, alleging that it used an autodialer to call his cell phone number impermissibly. The plaintiff… Continue Reading

Class Action Attacking Product Defect Declared Moot When Company Voluntarily Recalled Challenged Product

Posted in Adequacy, Class Action Trends, Class Certification, Motions Practice, Superiority

Should a class action go forward when the company voluntarily has provided all the relief plaintiffs have sought?  At least in some circumstances, the answer is “no,” according to the Tenth Circuit. Here’s some background.   Many product manufacturers—and especially auto makers—are targeted by the class action bar when they announce voluntary recalls.  The lawsuits typically… Continue Reading