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• W3125472593 abstract "ABSTRACTRecent Supreme Court decisions have tightened up the standards for obtaining class certification and virtually eliminate class arbitration as well. However, while the Court has made it more difficult for plaintiffs' attorneys to use class resolution of claims as a prosecutorial tool, the lower federal courts appear to relax certification standards when the parties seek to certify a settlement class. Because of the preclusive power of a class action, which binds all class members who do not opt out, the class action remains a potent settlement tool. The 2014 Randolph W. Thrower Symposium panel that served as the foundation for this paper, Binding the Future: Global Settlements and the Death of Representative Litigation, asked, however, whether class settlements are bad for class members.This Article begins by analyzing the Supreme Court's certification decisions and agrees with most commentators that although class actions are not dead, the device's utility as a prosecution tool has been compromised. However, the Article then shows that certification of class actions for settlement purposes is alive and well. Finally, the Article identifies possible alternatives to the use of class actions. Although much attention has been (and should be) directed at the fairness of proposed settlements, the Article suggests that it is fortunate that the lower federal courts are not applying class certification standards as stringently in the class settlement context. This is because, despite all the problems inherent in class action practice, class actions remain the best of a range of options for protecting the rights of class members, particularly in low-value claim cases.INTRODUCTIONThere seems to be a bit of schizophrenia in the world of class actions. On the one hand, corporate defendants hate them; on the other, they love them.1 When a class complaint is filed against a corporate defendant, it will do all it can to prevent class certification, otherwise known as the nuclear bomb the plaintiff seeks to hang over its head.2 But, when it suits their needs, corporate defendants may try to achieve a global peace by negotiating a class settlement with the plaintiff class's attorneys.3 Similarly, the 2014 Randolph W. Thrower Symposium, to which I was honored to be invited, brought together leading scholars and practitioners to discuss whether, on the one hand, class actions are really dead, but on the other, whether class settlements are a bad thing for plaintiffs.4 4It is no secret that the United States Supreme Court has made obtaining class certification and group dispute resolution more difficult. Over the last several Terms, the Court has decided several lines of class action cases.5 Two lines of cases that are of particular importance to the issues this Article addresses-one line pertains to class certification requirements under Federal Rules of Civil Procedure 23, and the other pertains to class arbitration-have upped the ante for plaintiffs seeking to use the power of this ultimate aggregation device to obtain a large recovery for class members who often otherwise have claims too small to justify individual actions.6 A subset of the class certification requirements line is a series of cases on securities class actions that has been relatively pro-class friendly.7 The third line parses some of the intricacies of the Class Action Fairness Act of 2005 (CAFA) and federalism issues.8 This line of cases has an impact on whether a particular class action is litigated in state or federal court, which, in turn, may tilt the equation in favor of or against class certification because plaintiffs' counsel tend to perceive state courts as relatively more class action friendly.9 Although this Article will not address this line of cases directly, it will discuss the most recent Supreme Court case, Mississippi ex rel. Hood v. AII Optronics Corp}0-in which the Court unanimously held that a state attorney general's parens patriae action is not removable under CAFA-because it may provide the foundation for an alternative to class actions. …" @default.
• W3125472593 created "2021-02-01" @default.
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• W3125472593 date "2014-11-01" @default.
• W3125472593 modified "2023-09-26" @default.
• W3125472593 title "IS THE CLASS ACTION REALLY DEAD? IS THAT GOOD OR BAD FOR CLASS MEMBERS?" @default.
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