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U.S. Court of Appeals for the 9th Circuit

Apr. 14, 2016

Court: Defendants cannot escape class actions by paying full settlement to lead plaintiff

Companies cannot rid themselves of a potential class action by paying a full settlement to the lead plaintiff, the 9th U.S. Circuit Court of Appeals ruled Tuesday.

By Fiona Smith
Daily Journal Staff Writer

Companies cannot rid themselves of a potential class action by paying a full settlement to the lead plaintiff, the 9th U.S. Circuit Court of Appeals ruled Tuesday.

A unanimous three-judge panel nixed an attempt by Allstate Insurance Co., which had the backing of several business trade groups, to have the court dismiss a case in which plaintiffs alleged the company had badgered people with unsol...

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