Quarterly Update from Inside Class Actions
October 2023, Covington Report
Inside Class Actions covers significant developments and trends across every facet of class action practice, including arbitration, discovery, certification, and settlement. The blog’s posts will be of interest to companies facing class action litigation, class action practitioners, and anyone interested in this dynamic practice area.
This quarter featured posts discussing recent decisions regarding class action settlements, defenses to liability, and an important decision from the UK Supreme Court. These posts, and other highlights from the quarter, include:
1. A Second Circuit decision elaborating on the proper legal standard for determining whether class action settlements are fair and reasonable, and clarifying that district courts cannot apply a presumption of fairness to agreements reached after arm's-length negotiations.
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2. The UK Supreme Court’s judgment holding that litigation funding agreements ("LFAs") do not constitute a valid funding arrangement for opt-out collective proceedings, and that LFAs must satisfy statutory conditions to be enforceable in opt-in collective proceedings.
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3. An Eleventh Circuit opinion holding that customers whose payment information was posted to the dark web had Article III standing to assert data breach claims.
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4. A trio of federal decisions supporting preemption arguments in cases challenging labeling "structure/function" claims, which "describe the role of a nutrient or dietary ingredient intended to affect the structure or function in humans."
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5. A recent federal decision signaling growing acceptance of a strong threshold defense to claims under the Video Privacy Protection Act: that the statute does not apply when the defendant’s use of online videos was not central to the defendant’s business.
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6. A decision of the Michigan Supreme Court prohibiting lenders from relying on "usury savings clauses" to circumvent the state's usury law, but clarifying that a lender's effort to enforce such a clause is not enough to trigger criminal liability."
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Covington's Class Action Litigation Group represents companies in class actions in nearly every major substantive area in which such suits are brought, including, among others, antitrust, consumer protection, privacy, product liability, securities, employment, and ERISA.
If you have any questions concerning the material discussed in this client alert, please contact the members of our Class Actions practice.
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