Class Settlement: Addressing Reversionary Clauses, Fraud in Administration, Notice, Opt-Outs and Objectors
Recognizing and Avoiding Common Missteps in the Quest for Preliminary Approval
Course Details
- smart_display Format
On-Demand
- signal_cellular_alt Difficulty Level
- work Practice Area
Class Action and Other Litigation
- event Date
Thursday, April 1, 2021
- schedule Time
1:00 p.m. ET./10:00 a.m. PT
- timer Program Length
90 minutes
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This 90-minute webinar is eligible in most states for 1.5 CLE credits.
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This CLE course will discuss common missteps attorneys make when moving for preliminary approval of a class settlement and best practices for resolving them before filing the motion.
Mr. Azari has more than 16 years of experience in the design and implementation of legal notification and claims administration programs. He and his staff are nationally recognized specialists in the creation of notification campaigns in compliance with Fed R. Civ. P. 23(c)(2) (d)(2) and (e) and similar state class action statutes. Mr. Azari has been responsible for hundreds of legal notice and advertising programs. He’s an expert at providing consultative guidance with respect to all aspects of the class action settlement process from notice plan implementation through disbursements. Mr. Azari is a frequent lecturer and author on class action notice issues.
Mr. Herrington's practice focuses on complex commercial litigation, including class actions in the areas of false advertising, unfair competition, food and beverage, consumer products, insurance, and products liability. He helps sophisticated business clients address complex disputes and competitive challenges to their products, services and business practices.
Ms. Mesko is an experienced litigator who represents businesses in complex civil litigation throughout the United States. She focuses her practice on class actions in a variety of areas, including securities fraud, consumer claims, and warranty and product liability litigation, as well as insurance coverage and commercial disputes.
Judges see certain problems and defects in motions for preliminary approval of class action settlements over and over--most could be corrected without time-consuming redrafts and resubmissions.
In any class action settlement, the fate of unclaimed funds can be pivotal because whether the case involves a common fund or claims-made settlement, some tenders always go unclaimed. Giving those funds back to the defendant creates special problems. While "reverters" may well be justified, counsel often fail to provide mechanisms to adjust for those issues or why such a clause is appropriate in the first place.
Settlement administration is often not adequately understood or explained, such as why a particular administrator was selected and how, which party pays those costs, and disclosing any possible connections between counsel and the administrator. The panel will also discuss fraud in the administration process and proactive steps to eliminate it.
Since due process requires adequate notice, practitioners must explain what notice to absent class members will be provided without reference to conclusory statements that notice is adequate. Without proper notice, any settlement itself will be worthless. Courts are especially interested in protecting the rights of claimants who elect not to participate and objectors. Recently, lone objectors upended two settlements in the Eleventh Circuit over incentive awards and standing long after the deal was made.
Listen as the panel discusses often seen and often easily corrected gaps in the preliminary motion.
- Overview of settlement requirements
- Provisions that counsel often fail to properly address
- Reversionary clauses
- Settlement administration
- Procedures
- Fraud protection
The panel will review these and other key issues:
- What is the danger of reverters?
- What can be done to lessen the likelihood of fraud in administration?
- How much notice (time) must be given to claimants who elect not to participate?
- How can counsel "begin with the end in mind" for settlement?
- What is the best way to demonstrate the cost of various types of notice?
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