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Tag Archives: Fed. R. Civ. P. 23(b)(2)

Sixth Circuit Rejects Class Settlement Over Excessive Payments to Class Counsel and Named Plaintiffs

Posted in Class Action Settlements

The federal courts of appeals continue to scrutinize class-action settlements closely when the direct benefits to class members are overshadowed by the attorneys’ fees that flow to plaintiffs’ counsel. The most recent example is Greenberg v. Procter & Gamble Co. (pdf), No. 11-4156 (6th Cir. Aug. 2, 2013). In its decision, the Sixth Circuit provided guidance… 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), Superiority

The 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

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

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

Second Circuit: Insufficient Notice of Class Action Settlement Means That Class Members Can Bring Copycat Class Actions

Posted in Appeals, Class Action Settlements, Class Certification, Rule 23(b)(2), Superiority

The Second Circuit’s recent decision in Hecht v. United Collection Bureau, Inc., No. 11-1327 (2d Cir. Aug. 17, 2012), should sound alarm bells for any business that attempts to settle a class action.  The takeaway from the decision is to make sure that  notice of the settlement to absent class members is adequate. Under some… Continue Reading