Complex litigation: class actions

Question 1

Settlement

Answer 1

The claims, issues, or defenses of a certified class may be voluntarily settled, compromised, or dismissed only with the approval of the court.

Question 2

Numerosity

Answer 2

In order for a representative of a class to sue on behalf of all members of a class, the class must be so numerous that joinder of all members is impracticable.

Question 3

Class Action Fairness Act (“CAFA”)

Answer 3

Federal courts have subject-matter jurisdiction over certain class actions where:

(1) The amount in controversy exceeds $5 million;
(2) There are at least 100 class members; and
(3) There is minimum diversity.

Question 4

Notice: Rule 23(b)(1) and (b)(2) class actions

Answer 4

Notice to the class members, other than the named representatives, is at the discretion of the court.

The court may order that appropriate notice be given, which often takes the form of publication notice.

Question 5

Notice: Rule 23(b)(3) class actions

Answer 5

Class members are owed the best notice practicable under the circumstances.

A class member who is not named as a representative is generally entitled to individual notice if the class was certified under Rule 23(b)(3).

Question 6

Rule 23(b)(3): predominance

Answer 6

Under Rule 23(b)(3), a class can be certified only if questions of law or fact that are common to the class members predominate over any questions affecting only individual members.

Question 7

Objectors

Answer 7

A class member who objects to a proposed class settlement has the right to appeal the court’s approval of it.