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Archive for August 24th, 2011

As I have noted in a series of posts recently, class action settlement objectors should not be taken lightly.  (See this August 1, 2011 post and others cited within).  Last week, the Second Circuit Court of Appeals offered an excellent case in point in its decision in In re Literary Works in Electronic Databases Copyright Litigation, No. 05-5943-cv(L) (2d Cir., Aug. 17, 2011), in which a two-judge majority sided with ten objectors in vacating the approval of a class action settlement involving copyright infringement claims by freelance authors against various publishers who provide content in online databases.   Based in part on principles limiting settlement class certification that were recognized in two well-known Supreme Court opinions from the late 1990s, Amchem Prods., Inc. v. Windsor, 521 U.S. 591, 620 (1997) and Ortiz v. Fibreboard Corp., 527 U.S. 815 (1999), the court held that the interests of various subclasses within a proposed settlement class had interests that were too divergent to be adequately represented by a single group of class representatives and class counsel.  Andrew Trask has a good summary and some insightful commentary about the decision and its potential future impact on his blog, Class Action Countermeasures.  Alison Frankel offers additional perspective in her column for Thompson Reuters, On the Case.

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