In class actions involving more than one defendant and at least one local defendant, two exceptions to jurisdiction under the Class Action Fairness Act (CAFA) potentially come into play. The “home state” exception applies if two-thirds or more of the proposed class members and the “primary defendants” are citizens of the state where suit was
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Issues Classes Under Rule 23(c)(4): Seventh Circuit Focuses on Superiority
Plaintiffs sometimes seek to certify an “issues class” under Federal Rule of Civil Procedure 23(c)(4) (or an equivalent state court rule) if they anticipate difficulty certifying the entire case for class treatment, but certain issues maybe more likely to qualify for class treatment. The federal rule provides that “[w]hen appropriate, an action may be brought…
Attorneys’ Fees Award in Data Breach Class Action Settlement Reversed by Eighth Circuit
These days it seems like nearly every data breach results in a multitude of class action filings. Some of these cases settle quickly with minimal litigation. In such a case, the Eighth Circuit recently reversed an attorneys’ fees award of $78.75 million, finding it excessive.
In re T-Mobile Customer Data Security Breach Litigation, Nos.…
New Texas Supreme Court Decision Highlights Several Defense Strategies for Defeating Class Certification
A recent Texas Supreme Court decision in a class action caught my eye because it addressed several significant class certification issues, including one that I’ve seen regularly and another that the court analyzed in a new and different way. First, the court held that a named plaintiff does not have standing to seek injunctive relief…
Eleventh Circuit Provides New Guidance on Class Action Settlements
Suppose that the central issue in a putative class action is a legal issue pending before the Supreme Court. Depending on how the Supreme Court rules, the plaintiffs will recover either nothing or up to $600 million. But rather than rolling the dice and waiting for that decision, the parties agree to a class action…
Pendent Appellate Jurisdiction in Class Actions Addressed by Fourth Circuit
When a class certification decision overlaps with merits issues, can a court of appeals deciding an interlocutory appeal from a class certification order also review an earlier decision on a motion to dismiss if it was integral to the class certification order? Yes, according to a new Fourth Circuit decision.
Class Action Fairness Act (CAFA) Local Controversy Exception Is Narrower Than You Might Think, According to the Fifth Circuit
Think twice about whether the Class Action Fairness Act’s “local controversy” exception applies to your case. Even if more than two-thirds of the proposed class members are citizens of the forum state, there is a significant in-state defendant and the claims asserted arise from conduct in that state, that is not necessarily enough for the…
What is Required to Allege Standing in Cases Alleging Invasion of Privacy? Third Circuit Weighs In.
In today’s world nearly everyone’s name, address and various other pieces of arguably personal information reside on many companies’ computer servers. Sharing of such information between companies has resulted in countless class action suits, in many of which the alleged harm is negligible at best. The Supreme Court’s decision on Article III standing in TransUnion…
Can a Class Member Intervene After Class Certification Is Denied? Sixth Circuit Says No.
When class certification is denied because the named plaintiff’s claim fails for some reason, sometimes an absent class member will try to intervene rather than filing their own separate suit. Their goal is usually to attempt to certify a class for a longer time period than would otherwise be possible. If the new plaintiff files…
Liability vs. Damages in Class Certification Analysis Addressed by Fifth Circuit
In analyzing class certification issues, courts have said that common issues may predominate in some cases even though damages would have to be determined individually for each class member. But what about where some class members have no damages? Recent federal appellate decisions have said that situation presents an issue of liability, not damages. A…