Thoughts On Post-Settlement Claims By Class Members

Law360, New York ( March 16, 2016, 11:52 PM EDT) -- The federal class action process includes a notice to absent class members, opportunity to object, and (for Fed. R. Civ. Pro. R.23(b)(3) classes) opportunity to opt out that is intended to achieve finality. Accordingly, attempting to reopen the allocation of a distribution after final approval and after distribution has been completed would seem like an unlikely prospect. One might reasonably expect the court that approved the settlement and distribution to require a good explanation for such an attempt. A claimant disinclined to provide such an explanation might instead seek to recast the reopening of the settlement as another claim, such as a malpractice, and instead have it heard in a forum with no connection to the settlement, the underlying litigation, or perhaps even the class counsel. Several such attempts have been made. The routine outcome is that courts refuse to participate in such an end-run. Such was the result when the Superior Court of New Jersey, Appellate Division, considered Loures v. Wolf Haldenstein (Docket No. A-2095-14T4; March 8, 2016)....

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