Alert: DOJ Focus on Pending Class Action Settlements
By William Wickersham
February 23, 2018
Clients and Friends:
In an effort to keep our clients and friends advised of developments that may impact pending or future class action settlements, we wanted to make you aware of the US Department of Justice’s (DOJ) new focus and enhanced scrutiny of pending class action settlements—a change in policy that differs from that of the previous administration. Pursuant to the Class Action Fairness Act of 2005 (CAFA), the U.S. Attorney General is notified of any pending R. 23 class action settlements within 10 days of the filing for preliminary approval.
In a recent speech by outgoing Associate Attorney General Rachel Brand before the Federalist Society on February 15, 2018, Ms. Brand detailed the Department’s new efforts to expedite the review process of the CAFA notices received by the Attorney General’s office so that they can timely intervene where appropriate. Ms. Brand stated that holdups in the DOJ mailroom were to blame and that the Department is now in a better position to review CAFA notice materials.
The following day, on February 16, 2018, the DOJ’s Consumer Protection Branch filed a Statement of Interest of the United States in the Cannon et al. v. Ashburn Corp., Civil Action No. 16-1452 (RMB/AMD) (D. N.J.) consumer class action settlement urging the court to “reject” the pending settlement, characterizing the settlement as offering “extremely limited value to consumers and yet seeks a massive $1.7 million windfall payment to plaintiffs’ counsel.” The DOJ also described the settlement as a coupon settlement with “very limited value.”
This appears to be the new focus of the DOJ: to intervene in connection with pending class actions. If you would like a copy of the DOJ’s Statement of Interest in Cannon et al. v. Ashburn Corp., please email William W. Wickersham, Esq. or the practitioner within RG/2 with whom you are regularly in contact. We will be pleased to provide to you a copy.
If you suspect that you may have matters where the recovery under consideration might attract the attention of the DOJ, please contact us so that we may provide practical solutions for your consideration.
William W. Wickersham, Esq.
Vice President,
Business Development and Client Relations
Direct: 212.471.4777
Mobile: 267.535.9722
wwwickersham@rg2claims.com
About RG/2 Claims Administration
RG/2 Claims is a boutique class action claims administration firm with a nationwide presence founded by seasoned class action practitioners and highly credentialed tax professionals. Our leadership team has a collective 100 years’ experience working in the field of class action litigation and settlement administration to leverage for the benefit of counsel. Our experienced team of driven top-notch class action attorneys, highly credentialed CPAs and forensic accountants approach each matter with a personal goal to shepherd the settlement through the process from settlement negotiations through final approval. Our personal attention and care ensures that the administration is handled in a seamless matter that allows counsel to proceed with the knowledge and confidence that their settlement will receive the attention and care that they demand. Our operations and IT professionals bring individualized innovations to each engagement, driving the notice and settlement administration to its successful conclusion. We have the experience and know-how to handle your largest settlement with the personal attention and care you should expect from a boutique firm.