You have recently received (via US mail, email, or both) an envelope or message containing something called a class action settlement legal notice. what is the nature of this notice and what should you do now? In this article, we’ll answer these questions and more.
how class action lawsuits work
First, some background: When the same conduct by the same company or organization affects a large number of people in the same way, and when certain procedural requirements are met, affected people who have suffered harm (some sometimes hundreds or even thousands of them) can form a “class” of plaintiffs in a lawsuit (instead of filing hundreds or thousands of individual cases). This type of lawsuit is called a “class action.”
Learn more about how class action lawsuits work.
In most situations, anyone who receives a class action settlement legal notice should have already received (usually several months or even a few years earlier) a different document in the mail (or email) called class action notice. This prior document is intended to notify the recipient of its inclusion in the class, detail the nature of the allegations against the defendant, and also provide instructions on how to “opt out” of the class and preserve the right to sue. lawsuit separate from the class action.
A federal court can only approve a proposed binding class action settlement if, after a hearing, the court finds that the proposed settlement is “fair, reasonable, and adequate.”
Class Action Settlement and Notice Requirements
Any member who does not “exclude” himself or herself from the class will be subject to any resolution of the class action, including any agreement reached between the class representatives (sometimes called lead plaintiffs) and the defendant. and in most jurisdictions, the court must approve any proposed class action settlement before it becomes final and binding.
Note: Procedural rules for class actions and settlements differ slightly between the federal system and different states, but since many state procedural rules for class actions largely mirror what is stated in the federal procedural rules, we will discuss the conciliation class actions in the context of the federal rules of civil procedure (frcp).
Whenever there is a proposed settlement in a class action case, the federal rules of civil procedure (specifically, frcp 23) require the court to give “reasonable” direct notice to all class members who would be bound for the proposed arrangement. the court can only approve a proposed binding settlement if, after a hearing, it finds that the proposed settlement is “fair, reasonable, and adequate.”
frcp 23 also says that any class member can object to the proposed settlement. more on this later.
To give you an idea of the type of notice you should receive (by mail or email) related to a class action settlement in federal court, where the terms of a class action settlement are almost always available online, ee uu. The District Court for the Northern District of California has posted this sample language on its website:
This notice summarizes the proposed settlement. for the precise terms and conditions of the settlement, please see the settlement agreement available at www.____________.com, by contacting class counsel at _______________, by accessing the court docket in this case through the court’s public access to electronic court records (pacer) system at https://ecf.cand.uscourts.gov, or by visiting the office of the clerk of the united states district court for the northern district of california, [insert appropriate court location cut here], between 9:00 a.m. and 5:00 p.m. m. and 4:00 p.m. m., Monday through Friday, except court holidays.
Do not telephone the court or the court clerk’s office to inquire about this settlement or the claim process.
object to the proposed class action settlement
As mentioned above, one function of the class action settlement legal notice (at least in federal court) is to inform class members of their right to object to the proposed settlement and provide details on how to do so. learn more about the procedure for challenging a class action settlement.