Tag Archives: settlement

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

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

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

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

Delaware Supreme Court Allows Opt-Out Right in Securities Case Certified on Equitable Grounds

By Frank Oliva on Posted in Securities
In In Re Celera Corporation Shareholder Litigation, No. 212, 2012 (Del. Dec. 27, 2012), the Delaware Supreme Court reversed the lower Court of Chancery and ruled that a large holder of Celera Corporation (“Celera”) shares must permitted to opt out of a shareholder class action settlement relating to the company’s sale to Quest Diagnostics, Inc. … 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

Eleventh Circuit Upholds Class Settlement Over Objection of “Professional Objector”

By Joseph Ezzie on Posted in Settlements
Co-authored by:  Rodger Eckelberry Plaintiffs’ counsel and defense counsel have spent untold hours working on a class action settlement.  The parties have met numerous times with a court-appointed mediator, and have finally come to an agreed upon resolution of the case.  The settlement is submitted to the court for preliminary approval, which is granted.  Then, … Continue Reading

The Use of the Cy Pres Doctrine in Class Settlements

By Melonia A. Bennett on Posted in Settlements
Co-authored by Rodger Eckelberry Defendants settle class actions to buy peace and put litigation behind them.  Plaintiffs settle class actions to guarantee at least some recovery, and to avoid prolonged litigation.  A settlement benefits no one, though, if the settlement is not approved by the court or if approval is reversed on appeal.  The Ninth … Continue Reading

How to Design Your Notice to Minimize Professional Objectors

By Guest Blogger on Posted in Practice Pointers, Settlements
By: Steven Weisbrot, Director of Class Action Services at Kurtzman Carson Consultants (“KCC”) and Carla Peak, Director of Legal Notification Services at KCC.  The views expressed are their own. Whether you love them or hate them, class action objectors exist and more than a few of them are professionals, just waiting to pick apart your settlement for … Continue Reading

The Importance of a Defendant’s Active Participation in Class Action Settlement Administration

Photo of Casie CollignonBy Casie Collignon on Posted in Practice Pointers, Settlements
A class action settlement has been reached. The agreement is inked. You have preliminary approval. A class action settlement administrator has been hired. In many respects, the hard part is over, but that does not mean that either the defendant or defense counsel can become complacent. There are still a variety of steps that must … Continue Reading

Northern District of California Decision Highlights Impact of Prior Settlements on Subsequent Related Class Actions

By Benjamin D. Pergament on Posted in Civil Procedure, Issue and Claim Preclusion, Settlements
The United States District Court for the Northern District of California recently issued an order demonstrating the effects that a release in a settlement in one class action may have on claims in subsequent class actions.  In McNeary-Calloway v. JP Morgan Chase Bank, N.A., Case No. C-11-03058 JCS, United States Magistrate Judge Joseph C. Spero … Continue Reading
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