Archives: Settlements

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Global Fitness Not in Shape to Pay Fees and Expenses, Held in Contempt for Failing to Comply with Final Approval Order

Photo of Robert J. TuckerBy Robert J. Tucker on Posted in Settlements
Last month, Global Fitness Holdings LLC and its four managers were held in civil contempt for failure to comply with a final order approving a class action settlement. Gascho v. Global Fitness Holdings, LLC, S.D. Ohio No. 2:11-cv-436 (Aug. 8, 2017). Global Fitness entered into a class action settlement resolving claims that it had engaged … Continue Reading

Seventh Circuit Rejects Subway Footlong Class Settlement as a “Racket”

Photo of Ann YackshawBy Ann Yackshaw on Posted in Settlements
A recent Seventh Circuit decision pushed back on a proposed settlement of the Subway “footlong sub” class action, finding the proposed settlement a “racket” designed to benefit class counsel without any benefit to the class. The story begins in 2013 when a Facebook post showing a Subway footlong sandwich measuring just 11 inches went viral. … Continue Reading

California Court Rejects Tuna Settlement Over Scope of Release

Photo of Kristen HawesBy Kristen Hawes on Posted in Settlements
In recent years, courts have been more carefully scrutinizing class action settlements. A recent example is Hendricks v. Starkist Co., Case No. 3:13-cv-00729 (N.D. Cal. Feb. 19, 2016), where the U.S. District Court for the Northern District of California denied final approval of a $12 million settlement of a class action filed against StarKist. The lawsuit … Continue Reading

Seventh Circuit Holds Attorney is Bound to $3.54m Class Settlement Fee Agreement He Did Not Sign

By Stephanie Osterman on Posted in Settlements
On February 14, 2014, the Seventh Circuit ruled that a plaintiff’s attorney was bound by the terms of a class action settlement involving alleged malfeasance in the laying of fiber-optic cables by telecommunications companies on certain landowners’ property even though the attorney never signed the final settlement agreement. The Seventh Circuit affirmed the Illinois federal court judge’s … Continue Reading

Those Blasted Exclusions! Court Rules that Notice of TCPA Exclusion in Renewal Policy was Valid

By C. Zachary Rosenberg on Posted in Class Action Trends, Insurance, Ohio, Settlements
Last week, the Illinois Court of Appeals released an opinion ruling that Cincinnati Insurance Company has no obligation to contribute an additional $4 million to a settlement of a class action claim brought under the Telephone Consumer Protection Act (TCPA).  Windmill Nursing Pavilion Ltd. v. Cincinnati Insurance Co. et al., 2013 IL App (1st) 122431 … Continue Reading

Objectors Seek Writ of Certiorari to SCOTUS Over Monsanto Agent Orange Settlement

Photo of Justin WinquistBy Justin Winquist on Posted in Class Certification, Settlements, Uncategorized
On January 21, 2014, objectors to a class action settlement over contamination from Monsanto Agent Orange herbicide filed a Petition for Writ of Certiorari with the Unites States Supreme Court.  The Petition asked the Court to entertain the objectors’ request to reverse the West Virginia Supreme Court’s November 22, 2013 decision, which affirmed the trial … Continue Reading

Tax Court Rules that Payments by Tobacco Distributor to Tobacco Master Settlement Agreement Qualified Settlement Fund Not Deductible Until Paid

By Jennifer Benda on Posted in Class Action Trends, Settlements
In Suriel v. Comm’r, 141 T.C. No. 16 (Dec. 4, 2013), the Tax Court ruled that, under the specific facts in this case, the economic performance rules under IRC Section 461(h), permitting a tax deduction for certain liabilities when a liability is fixed and before the liability is actually paid, did not trump the qualified … Continue Reading

Australian Thalidomide class action settled

Photo of Darren CrookPhoto of Patrick T. LewisBy Darren Crook and Patrick T. Lewis on Posted in Consumer Class Action, Settlements
More than 50 years after the morning sickness drug Thalidomide was first released to the market, the drug’s British distributor announced on Monday, December 2nd that it has agreed to settle an Australian class action in the Victorian Supreme Court over birth defects linked to the drug.  The legal team representing the class claimed that Australia … Continue Reading

Casie Collignon to Present Program On Class Settlement Objections

Photo of Patrick T. LewisBy Patrick T. Lewis on Posted in Class Action Trends, Settlements
Addressing class action settlement objections–including those made by so-called “professional” objectors, government agencies, and public interest groups–has become an increasingly important part of any class action litigator’s job.  On January 9th, our co-editor, Casie Collignon, and Bruce D. Greenburg of Lite DePalma Greenberg in Newark, N.J., will teach a CLE program that will review the trends in this area and outline strategies that counsel … Continue Reading

Class Action Settlement Based on Voucher Payout Wins Preliminary Approval by California District Court

By Judy Selby on Posted in Class Action Fairness Act, Settlements
On November 5, 2013, a California federal district court preliminarily approved a revised coupon-based class action settlement agreement between plaintiffs and OfficeMax (see Order Granting Preliminary Approval of Revised Class Action Settlement Agreemeent).  As reported here in September, the court rejected a prior proposed settlement between the plaintiffs, who had accused OfficeMax of illegally recording … Continue Reading

Judge Slashes Attorneys’ Fees and Incentive Awards in Defective Laptop Class Action

By Stephanie Osterman on Posted in Consumer Class Action, Settlements
In a consumer class action settlement involving allegedly sluggish Acer notebook computers, a Northern California federal judge sua sponte slashed the attorneys’ fees award sought by plaintiffs’ lawyers from the requested $2,542,246 to $943,217.  Wolph v. Acer Am. Corp., Case No. 3:09-cv-0-1314-JSW (N.D. Cal. Oct. 21, 2013). The named plaintiffs accused Acer of selling notebook … Continue Reading

TCPA Class Action Settlements in Illinois—the Dispute Between Client and Insurer Rages On

By C. Zachary Rosenberg on Posted in Insurance, Settlements
On October 31, 2013, the Northern District of Illinois forced two insurers to cover a $6 million settlement of a TCPA class action despite claims that their insured, M&M Retail Center, Inc., settled for an inflated amount it knew it would never have to pay.  Maxum Indemnity Co. v. Eclipse Manufacturing Co., 1:06-cv-04946 (N.D. Ill. … Continue Reading

California Rejects a Class that Includes Uninjured Class Members

Photo of Julian PerlmanBy Julian Perlman on Posted in Class Action Trends, Class Certification, Class Definition, Settlements
A California federal court has rejected a proposed settlement to a class action over alleged material omissions in Option Adjustable Rate Mortgage Loan documentation (Order Denying Plaintiffs’ Motion for Preliminary Settlement Approval in Peel, et al. v. BrooksAmerica Mortgage Corp., et al.).  Lead plaintiffs and defendants, which included several divisions of Washington Mutual, agreed to … Continue Reading

OfficeMax Class Action Zip Code Plaintiffs Again Seek Approval for Settlement and Attorney Fee Payment

By Judy Selby on Posted in Class Action Fairness Act, Settlements
Editor’s Note: This post is a joint submission with BakerHostetler’s Data Privacy Monitor blog. Lawyers representing a purported class of customers who accused retailer OfficeMax North America Inc. (OfficeMax) of illegally recording their zip codes tried again this week to gain court approval of a settlement deal agreed to with OfficeMax. Dardarian v. OfficeMax Inc., case number … Continue Reading

IRS Says Class Action Settlement Incentive Awards in Wage Based Claims Are Taxable As Wages

By Jennifer Benda on Posted in Practice Pointers, Settlements
On March 15, 2013, the IRS issued a private letter ruling responding to a request for a determination of whether incentive awards paid to class representatives under a settlement agreement resolving a class action suit against an employer under the Fair Labor Standards Act were wages for employment tax purposes.  In the Ruling, the IRS … Continue Reading

Consumer Products Settlements Containing Cy Pres Distributions Receiving Increased Scrutiny

By Nicole Skolout on Posted in Class Certification, Consumer Fraud, Settlements
In a recent decision, In re Baby Products Antitrust Litigation, 2013 U.S. App. LEXIS 3379 (3d Cir. Feb. 19, 2013), the Third Circuit vacated the district court’s order approving a $35.5 million class action settlement which provided for the distribution of remaining settlement funds, after individual distributions were made to claimants and costs and attorneys’ … Continue Reading

Disproportionately Favoring the Named Plaintiffs Kills Settlement, Says Sixth Circuit

Photo of Sam CamardoBy Sam Camardo on Posted in Adequacy of Representation, Class Certification, Consumer Fraud, Injunctions, Rule 23 Requirements, Settlements, Superiority
The Sixth Circuit recently limited defendants’ ability to craft settlements that disproportionately favor the class representatives.  Vassalle v. Midland Funding LLC, — F.3d –, 2013 WL 673517 (6th Cir. Feb. 26, 2013).  Though the court did not pass on the ubiquitous incentive award, its skepticism of “preferential treatment” for class representatives might cause district courts … Continue Reading

Blood Bank Data Breach Class Action Settlement Preliminarily Approved by California District Court Judge

By Tina Amin on Posted in Class Certification, Data Breach, Settlements
In Johansson-Dohrmann v. CBR Systems, Inc. et al, No. 3:12-cv-01115 (S.D. Cal., filed May 7, 2012), the latest data privacy class action to reach settlement, Judge Michael M. Anello on February 5, 2013 granted preliminary approval of a proposed class settlement in a federal class action suit brought by a client of a blood bank … Continue Reading

IRS Reporting Requirements for Class Action Settlement Payments and Court Awarded Damages

By Jennifer Benda on Posted in Class Certification, Practice Pointers, Settlements
When finalizing class action settlements, or paying damage awards after a class action judgment, it is important to be mindful of the taxation of these payments and the related IRS information reporting requirements triggered by these payments. In general, businesses and persons engaged in a trade or business are responsible for filing Form 1099-MISC to … Continue Reading

Late Class Settlement Claims – To Accept or Not to Accept?

Photo of Casie CollignonBy Casie Collignon on Posted in Class Certification, Practice Pointers, Settlements
Inevitably, there is always at least one late claim form arrival in every class action settlement. This precise issue was highlighted in a recent case in the Northern District of California. In Curtis-Bauer v. Morgan Stanley & Co., No. 3:06-cv-03903, a class action settlement was reached in a racial discrimination case against financial advisors at … Continue Reading

Second Circuit: Notice Required When Damages Not “Incidental” in a Rule 23(b)(2) Class

Photo of Rand L. McClellanBy Rand L. McClellan on Posted in Rule 23(b)(2) Class Actions, Settlements
Editors’ Note:  This article originally appeared as a “Client Alert” from Baker’s Class Action Defense team. Pointing out pitfalls in structuring enforceable class settlements, the Second Circuit Court of Appeals recently found that an absent class member’s claims were not barred by a prior settlement in a Rule 23(b)(2) class where monetary relief was not … Continue Reading
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