Class Action Dictionary - Common Terms
Arizona Consumer Fraud Act (ACFA)
A.R.S. § 44-1521 et seq.
Definition: Arizona’s consumer-protection statute prohibiting deception,
false promises, misrepresentations, and unfair practices in the sale or advertisement of merchandise and
services.
Why it matters: Commonly paired with nationwide claims and used to seek
restitution and injunctive relief for Arizona consumers.
Notes:
- Broad scope; intent can be inferred from conduct.
- AG enforcement plus private actions.
Arbitration Agreement
May include class-action waiver
Definition: A contract clause requiring disputes to be resolved by private
arbitration instead of court, sometimes waiving the right to participate in a class action.
Why it matters: Can limit class claims; opt-out windows and unconscionability
arguments may affect enforceability.
Look for:
- Clear opt-out instructions and deadlines.
- Delegation clauses and fee-shifting terms.
Consumer Product Safety Commission (CPSC)
U.S. product safety regulator
Definition: Federal agency that oversees product safety, recalls, and
standards for consumer goods (excluding areas regulated by other agencies).
Why it matters: Recall notices, hazard reports, and corrective actions often
intersect with consumer class actions.
You’ll see:
- Recall dashboards and incident databases.
- Repair/replacement/refund programs.
Class Counsel
Court-appointed attorneys for the class
Definition: The lawyers appointed by the court to represent the interests of
all class members after certification or for settlement purposes.
Why it matters: They negotiate settlements, litigate claims, and request fees
subject to court approval.
Consider:
- Experience and resources in similar cases.
- Adequacy to protect the class’s interests.
ESIGN Act Consent
Electronic Signatures in Global and National Commerce Act
Definition: Federal law allowing legally valid electronic signatures and
records when consumers affirmatively consent to receive disclosures electronically.
Why it matters: Impacts online agreements, subscription consents, and
delivery of important notices.
Checklist:
- Affirmative consent and hardware/software disclosures.
- Ability to access/save electronic records.
FLSA Minimum Wage
Fair Labor Standards Act (federal)
Definition: Federal baseline for hourly pay and overtime; states may set
higher minimums.
Why it matters: Underpayment claims often proceed as collective actions
(opt-in) or parallel state class actions.
Notes:
- Tip credits, exemptions, and overtime rules apply.
- Look for state/local wage laws that exceed federal.
Truth in Advertising
Deception, omission, substantiation
Definition: Legal standards requiring ads and labels to be truthful, not
misleading, and properly substantiated.
Why it matters: Core theory in many false-labeling, pricing, and subscription
class actions.
Signals:
- “Up to” claims without support.
- Hidden fees or material omissions.
GLBA Privacy Notice
Gramm-Leach-Bliley Act
Definition: Required disclosures from certain financial institutions
explaining data collection, sharing, and consumer rights, including opt-out for some sharing.
Why it matters: Data practices and notice failures can underlie privacy and
financial-services class cases.
Includes:
- Initial and annual privacy notices.
- Safeguards Rule security obligations.
International Service Assessment (ISA) Fee
Card network cross-border fee
Definition: A fee applied to certain card transactions processed outside the
U.S. or in foreign currency.
Why it matters: Inadequate disclosures of ISA or related fees can trigger
consumer claims and settlement refunds.
Watch for:
- Cardholder agreement fine print.
- Statements showing foreign transaction add-ons.
Lead Plaintiff
Also called: Class Representative (in securities, “Lead Plaintiff” under PSLRA)
Definition: The person or entity appointed to represent the class, direct
strategy, and work with class counsel.
Why it matters: Must be adequate and typical; in securities cases, courts
often select investors with the largest loss.
Duties:
- Consult on litigation and settlement.
- Provide documents and testimony if needed.
NSF Fee
Non-Sufficient Funds / Returned-item fee
Definition: Bank fee charged when a transaction is declined or reversed due
to insufficient funds.
Why it matters: Duplicate or misleading NSF/overdraft practices have led to
large bank-fee settlements.
Issues seen:
- Multiple fees on one item re-presentment.
- Ambiguous disclosures in account agreements.
Primary vs. Secondary Law
Sources of law vs. commentary
Definition: Primary law includes constitutions, statutes, regulations, and
cases. Secondary sources explain or analyze the law (treatises, articles, restatements).
Why it matters: Courts are bound by primary law; secondary sources can
persuade and clarify.
Tip:
- Use secondary to find and interpret primary authorities.
Privacy Policy
Data collection, use, and rights
Definition: A disclosure describing what personal data a site/app collects,
how it’s used/shared, and user choices.
Why it matters: Opaque or inconsistent policies can fuel privacy litigation
and AG enforcement.
Look for:
- Opt-out/opt-in choices and retention periods.
- State-specific rights (e.g., CA, CO, VA).
Terms of Use
Also called: Terms & Conditions; TOS/TOU
Definition: The contract governing use of a website/app, often including
arbitration clauses, class waivers, and limitations of liability.
Why it matters: Enforceability depends on how terms are presented and
consented to (clickwrap vs. browsewrap).
Key issues:
- Conspicuous assent near the action button.
- Change-of-terms and notice provisions.
robots.txt
Search-crawler instructions (SEO)
Definition: A file at a site’s root that tells search engine bots which paths
they may or may not crawl.
Why it matters: Helps control crawling; misconfigurations can hide content or
block important assets.
Tips:
- Don’t block pages you want indexed.
- Allow CSS/JS needed for rendering.
Truth-in-Leasing
Disclosures in consumer & equipment leases
Definition: Rules requiring clear lease terms (payments, fees, end-of-term
obligations) to prevent deceptive leasing practices.
Why it matters: Hidden charges or unclear end-of-term fees can drive leasing
class actions.
Watch for:
- Residual value, wear-and-tear standards.
- Early termination and purchase options.
Video Privacy Protection Act (VPPA)
18 U.S.C. § 2710
Definition: Federal law restricting disclosure of personally identifiable
information about a consumer’s video viewing.
Why it matters: Frequently litigated against sites/apps that share viewing
data with ad/analytics partners without valid consent.
Key issues:
- Who counts as a “subscriber” or “consumer.”
- What is “personally identifiable information.”
Settlement Administrator
Also called: Claims Administrator
Definition: The neutral third-party firm that runs a settlement:
builds the notice site, mails or emails notices, processes claim forms, validates documentation,
and issues payments.
Why it matters: They set deadlines, fix claim issues, and answer FAQs.
You’ll see:
- “File by Claim Deadline” on the admin portal.
- Status emails: received → approved/deficient → paid.
- Payment options: ACH, PayPal, Venmo, Zelle, or check.
Automatic Renewal Law (ARL)
Related: ROSCA, Negative Option
Definition: State laws requiring clear pre-signup renewal terms,
express consent, post-purchase confirmation, and easy cancellation for subscriptions.
Why it matters: Many subscription settlements (streaming, apps,
gyms) hinge on ARL violations.
Typical requirements:
- Price + renewal cadence near the final “Buy/Join” button.
- Online cancel for online signups.
- Renewal reminders for annual/long terms.
Class Certification
FRCP 23 factors: numerosity, commonality, typicality, adequacy
Definition: Court approval that a case can proceed on behalf of a group
(the “class”) rather than only the named plaintiff(s).
Why it matters: Certification can unlock broad relief or drive settlement
talks.
Watch for:
- Class definition (who is included/excluded).
- Class period (dates that qualify).
- Subclasses (e.g., CA purchasers vs. nationwide).
Claims-Made
Payment only to people who submit valid claims
Definition: A settlement where money is paid out only to class members who
file a claim form by the deadline.
Why it matters: Filing takes minutes but is essential to get paid.
Common features:
- Online form; may require receipts/emails for higher tiers.
- Unclaimed funds may revert, roll to cy pres, or increase pro rata shares.
Common Fund
Compare: claims-made settlements
Definition: A fixed dollar fund (e.g., $10M) created to pay class members,
attorneys’ fees, costs, and administration.
Why it matters: If claims are low, individual checks can be larger (often pro
rata).
Typical flow:
- Fees/costs approved → individual awards calculated.
- Second distribution if funds remain (sometimes).
Manageability
Class Certification Factor
Definition
A consideration in Rule 23(b)(3) certification that looks at whether handling a case as a class action
would be practical and efficient for the court.
Why it matters
If a class is unmanageable due to individual differences, certification may be denied.
- Courts balance efficiency against complexity
- Individualized damages can raise manageability concerns
- Can determine whether a case proceeds as a class or not
Choice of Law
Conflict of Laws Principle
Definition
A legal analysis to determine which state’s or country’s laws apply when multiple jurisdictions are
involved.
Why it matters
In nationwide class actions, different state laws may apply and complicate certification.
- Courts evaluate variations in state statutes
- May prevent nationwide classes if laws diverge
- Important in consumer and fraud litigation
Discovery
Pretrial Procedure
Definition
The process where each party requests and exchanges evidence, documents, and testimony before trial or
settlement.
Why it matters
In class cases, discovery helps define the scope of the class and test the strength of claims.
- Can be costly and time-intensive
- Includes depositions, interrogatories, and document requests
- Often shapes settlement negotiations
Parens Patriae Action
Government Enforcement Tool
Definition
A lawsuit brought by a state attorney general on behalf of its residents to protect their rights and
interests.
Why it matters
Acts like a class action but is led by the state, often in consumer protection or antitrust cases.
- Can secure restitution for citizens
- Sometimes filed alongside private class actions
- May avoid some certification hurdles
Settlement Fund
Resolution Mechanism
Definition
A pool of money set aside by the defendant to pay class members, attorneys’ fees, and administrative
costs in a class settlement.
Why it matters
The size and structure of the fund affect how much relief class members actually receive.
- Funds can be fixed, capped, or claims-made
- Subject to court approval and oversight
- Distribution methods vary by case
Typicality
FRCP 23(a)(3) Requirement
Definition
A class certification requirement that the claims of the representative parties are typical of those of
the class.
Why it matters
Ensures class representatives’ interests align with other members’ claims.
- Prevents conflicts between representatives and the class
- Helps establish fairness of representation
- One of the four Rule 23(a) prerequisites
Adequacy of Representation
FRCP 23(a)(4) Requirement
Definition
A certification requirement that the class representative and class counsel will fairly and adequately
protect the interests of the class.
Why it matters
Ensures the class is led by qualified representatives and attorneys without conflicts of interest.
- Protects absent class members’ rights
- Courts assess competence of class counsel
- Evaluates possible conflicts within the class
Predominance
Rule 23(b)(3) Standard
Definition
A test for whether common questions of law or fact outweigh individual ones in a proposed class action.
Why it matters
Predominance must be met for damages classes under Rule 23(b)(3).
- Key hurdle in consumer and antitrust class cases
- Balances efficiency against fairness
- Often the most litigated certification factor
Superiority
Rule 23(b)(3) Requirement
Definition
A requirement that a class action is the best available method for fairly and efficiently resolving the
controversy.
Why it matters
Courts compare the class approach to alternatives like individual suits or joinder.
- Ensures efficiency and fairness
- Weighs manageability of a class trial
- Necessary for certification of Rule 23(b)(3) classes
Equitable Relief
Legal Remedy
Definition
A non-monetary remedy such as an injunction, rescission, or declaratory judgment granted by the court to
prevent or correct harm.
Why it matters
In class actions, equitable relief can stop harmful practices when monetary damages are not enough.
- Common in consumer protection and employment cases
- Focuses on future conduct rather than compensation
- Can complement monetary settlements
Ascertainability
Class Certification Concept
Definition
The requirement that a class is clearly defined and its members can be identified using objective
criteria.
Why it matters
Courts need to know who is included in the class to ensure notice and relief are provided properly.
- Prevents vague or overly broad class definitions
- Supports fair notice to potential members
- Important in consumer product and data breach cases
Statute of Limitations
Legal Deadline
Definition
The maximum time after an event that a lawsuit can be filed, which varies by claim type and jurisdiction.
Why it matters
If the statute expires, class members may lose the right to pursue their claims.
- Protects defendants from stale claims
- Deadlines differ for fraud, contract, and injury cases
- Class filings can toll (pause) individual deadlines
Lead Plaintiff
Representative Role
Definition
The individual or entity appointed to represent the class and oversee the case on behalf of all members.
Why it matters
The lead plaintiff helps direct litigation strategy and must fairly represent class interests.
- Selected early in the case
- Courts assess adequacy and commitment
- May receive service awards for effort
Fairness Hearing
Settlement Approval Step
Definition
A court hearing where the judge evaluates whether a proposed class settlement is fair, reasonable, and
adequate.
Why it matters
Ensures absent class members’ rights are protected before final approval.
- Class members can object or support the settlement
- Courts review distribution methods and fees
- Often the last step before payouts
Injunctive Class
Rule 23(b)(2) Category
Definition
A class certified to seek a court order stopping or requiring certain conduct, rather than damages.
Why it matters
Useful in civil rights, consumer, and employment cases where ongoing practices must be changed.
- No monetary damages are sought
- Applies to uniform conduct affecting all class members
- Can force policy or practice changes
Cy Pres
French for: “as near as possible”
Definition: Residual funds donated to a charity or institution aligned with
the class’s interests when direct payments are impractical.
Why it matters: Ensures leftover money benefits the class indirectly.
Examples:
- Consumer privacy case → privacy research nonprofit.
- Food labeling case → nutrition education group.
Final Approval
Also called: Fairness Hearing / Settlement Approval
Definition: Court’s final sign-off that the settlement is fair, reasonable,
and adequate after considering objections and evidence.
Why it matters: Payments usually begin only after final approval and any
appeals.
Timeline:
- Prelim approval → notice → claims → final approval → distribution.
Injunctive Relief
Non-cash reforms
Definition: Court-enforceable changes to business practices (e.g., clearer
disclosures, better cancellation buttons, improved data security).
Why it matters: Prevents future harm and can be the main benefit in ARL/ROSCA
cases.
ARL examples:
- Price + cadence shown near the final consent button.
- One-click web cancel for online signups.
Notice Plan
Email, postal, digital ads, social, press
Definition: The court-approved method of telling class members about a
settlement, their rights, and deadlines.
Why it matters: Good notice means more people claim benefits on time.
Includes:
- Official website + long/short-form notices.
- Direct email/post + targeted media buys.
Opt Out / Exclusion
Keep your right to sue individually
Definition: A written request to be excluded from the class settlement so you
are not bound by the release.
Why it matters: If you opt out, you generally can’t claim settlement money
but
you keep the right to pursue your own case.
Checklist:
- Mail/email by the Exclusion Deadline with required details.
- Keep proof of delivery.
Preliminary Approval
The “green light” to send notice and open claims
Definition: Court’s initial determination that a proposed settlement is
likely fair, allowing notice to issue and the claims process to start.
Why it matters: Key dates (claim, opt-out, objection) are set here.
After prelim:
- Notice goes out; website and claim form go live.
- Final approval hearing date is scheduled.
Pro Rata
“Proportionate share”
Definition: Each approved claimant gets a proportional share of remaining
funds after fees/costs and any fixed awards.
Why it matters: Payouts can go up or down depending on how many claimants
there are.
Tip:
- Submit promptly and completely; incomplete claims may reduce or delay payment.
Release of Claims
What rights you give up if you do nothing/participate
Definition: The settlement’s legal promise that class members won’t sue over
the released issues/time period once the settlement is final.
Why it matters: Read the release and class definition carefully.
Look for:
- Products/services covered; time frame; types of claims.
- Whether future claims are affected.
ROSCA
Restore Online Shoppers’ Confidence Act (federal)
Definition: U.S. law requiring clear negative-option terms online and
express,
informed consent before charging; mandates simple cancellation.
Why it matters: Often paired with state ARLs in subscription cases.
Signals of compliance:
- Key terms near the final consent button.
- Post-purchase confirmation with cancel instructions.
Tiered Relief
Different payout levels by proof or impact
Definition: Settlement structure with multiple benefit levels—e.g., small
payment without proof, higher payments with receipts or detailed records.
Why it matters: Gather documents early to qualify for higher tiers.
Common proofs:
- Emails confirming purchase/renewal; bank statements; chat logs of cancel attempts.
Verification / Attestation
Sometimes under penalty of perjury
Definition: A sworn statement on your claim form that the information is
true; false claims can be rejected or penalized.
Why it matters: Be accurate; don’t exaggerate or submit for products you
didn’t buy.
Tip:
- Keep screenshots, confirmations, and statements that support your claim.
Unclaimed Funds
Also called: Unclaimed Property; Escheat
Definition: Money owed to consumers that hasn’t been received or cashed—e.g.,
settlement checks, rebates, closed accounts—often turned over to state unclaimed property programs.
Why it matters: Billions sit with states; you can search and claim it for
free.
Key points:
- Search your state treasury/unclaimed property website.
- Supply basic ID and proof of address to claim.
- In some settlements, uncashed checks are later reported to states.
California CLRA, FAL, and UCL
Consumers Legal Remedies Act; False Advertising Law; Unfair Competition Law
Definition: Three core California consumer statutes used in class actions for
deceptive or unfair practices, misleading ads, and unlawful business acts.
Why it matters: Frequently paired with subscription, labeling, and privacy
claims.
Remedies:
- Injunctions, restitution, actual/statutory damages (CLRA).
- Attorneys’ fees in many cases.
- Works alongside federal FTC standards.
Notice ID / Unique Settlement ID
Also called: Claimant ID; Confirmation Code
Definition: A unique code sent via email or mail to identify you as a class
member and access the claim portal.
Why it matters: Many settlements require it to file or check claim status.
Finding it:
- Check inbox/spam and physical mailers.
- Lost it? Contact the settlement administrator.
- Some portals allow lookup by name/address.
Washington Consumer Protection Act (CPA)
RCW 19.86
Definition: Washington law prohibiting unfair or deceptive acts in trade or
commerce.
Why it matters: Allows consumers to seek damages, attorneys’ fees, and up to
treble damages (capped) for violations.
Notes:
- Common in multi-state consumer class actions.
- Often pled with federal claims for nationwide relief.
Fairness Hearing
Also called: Final Approval Hearing
Definition: The court hearing where the judge decides if the proposed
settlement is fair, reasonable, and adequate.
Why it matters: Payments usually wait until after final approval and any
appeals.
What happens:
- Objections and responses are considered.
- Fees, costs, and service awards reviewed.
- Distribution plan confirmed or revised.
Stages of a Class Action
From filing to distribution
Definition: The typical procedural path a class case follows.
Why it matters: Helps set expectations for timing and when to file a claim.
Typical order:
- Filing → Certification (or settlement) → Preliminary approval
- Notice/claims → Fairness hearing → Final approval → Payments
California Consumer Privacy Act (CCPA/CPRA)
Cal. Civ. Code § 1798.100 et seq.
Definition: California privacy law giving consumers rights to know, delete,
and opt out of sale/sharing of personal information; CPRA added correction rights and created the CPPA
regulator.
Why it matters: Data-sharing and tracking disclosures are frequent class
action targets, often alongside VPPA or wiretap claims.
Look for:
- “Do Not Sell/Share” links and GPC signals.
- Notice at collection and retention policies.
California Consumers Legal Remedies Act (CLRA)
Cal. Civ. Code § 1750 et seq.
Definition: Prohibits unfair or deceptive acts in consumer transactions, such
as false representations and omissions.
Why it matters: Often pled with UCL/FAL in product labeling and subscription
cases; includes notice requirements for damages.
Remedies:
- Actual damages, injunctions, fees.
- Enhanced remedies for seniors/disabled (in some cases).
California False Advertising Law (FAL)
Cal. Bus. & Prof. Code § 17500 et seq.
Definition: Bars untrue or misleading statements in advertising likely to
deceive reasonable consumers.
Why it matters: Central to pricing, “Made in USA,” and performance claims;
equitable relief is common.
Proof points:
- Net impression of ads/labels.
- Survey/experts for deception and materiality.
California Unfair Competition Law (UCL)
Cal. Bus. & Prof. Code § 17200 (unlawful, unfair, fraudulent)
Definition: Prohibits business acts that are unlawful, unfair, or fraudulent;
borrows violations of other laws (like ARL/ROSCA) as “unlawful.”
Why it matters: Flexible theory for restitution and injunctions in consumer
cases.
Relief:
- Restitution (equitable), injunctive relief.
- No punitive damages under UCL.
PAGA
California Private Attorneys General Act
Definition: Allows employees to bring civil penalties claims on behalf of
themselves and others for Labor Code violations, acting as “private AGs.”
Why it matters: Often paired with wage/hour class claims; penalties are
shared with the state and employees.
Notes:
- LWDA notice and wait period required.
- Arbitration/class waivers may interact with PAGA standing rules.
Biometric Information Privacy Act (BIPA)
Illinois 740 ILCS 14
Definition: Illinois law regulating collection, use, and storage of
biometrics (face, fingerprint, voiceprint, etc.), requiring written notice, purpose, retention schedule,
and written consent.
Why it matters: Strict liability + statutory damages have driven major class
settlements over time clocks, face recognition, and photo tagging.
Key requirements:
- Written policy + retention/destruction schedule.
- Informed written consent before collection.
- No sale or disclosure without permission or an exception.
CCPA / CPRA
California Consumer Privacy Act / Privacy Rights Act
Definition: California privacy laws giving residents rights to know, delete,
correct, and opt out of sale/sharing of personal info; CPRA amended/expanded CCPA and created the CPPA
regulator.
Why it matters: Data-sharing, targeted ads, and security incidents can
trigger class claims and AG enforcement.
Notable rights:
- Access, deletion, correction.
- Opt-out of sale/sharing; limit sensitive data use.
- Reasonable security; notice at collection.
CAN-SPAM Act
Commercial email rules (U.S.)
Definition: Federal law setting rules for commercial emails—honest
headers/subjects, identification as ads, valid physical address, and opt-out mechanism.
Why it matters: Noncompliant email campaigns and affiliate promotions can
spur lawsuits and enforcement.
Checklist:
- Don’t use deceptive “From” or subject lines.
- Include a working unsubscribe link and honor within 10 business days.
- Show a valid postal address.
Children’s Online Privacy Protection Act (COPPA)
Web services for children under 13
Definition: Federal law requiring verifiable parental consent before
collecting personal info from children under 13 online.
Why it matters: Apps/sites aimed at kids face strict notice/consent duties
and data-minimization expectations.
Look for:
- Clear child-privacy notices and parental controls.
- Limits on behavioral advertising to minors.
Electronic Fund Transfer Act (EFTA)
15 U.S.C. § 1693 et seq.
Definition: Protects consumers in electronic transfers (debit/ATM/ACH),
including error-resolution rights and limits on unauthorized charges.
Why it matters: Recurring debits, negative-option billing, and sloppy dispute
handling can lead to class claims.
Hot spots:
- Unauthorized/erroneous withdrawals.
- Missing or late error-resolution notices/investigations.
- Improper preauthorized transfer practices.
FACTA (Fair and Accurate Credit Transactions Act)
Receipt truncation; identity theft protections
Definition: Amends FCRA; among other things, requires merchants to truncate
card numbers/expiration dates on receipts to reduce identity theft.
Why it matters: Printing too many digits or the expiration date can trigger
statutory-damages class actions.
Compliance tips:
- Show only last 5 digits; no expiration date.
- Apply to electronically printed receipts (not handwritten/imprint).
FDCPA
Fair Debt Collection Practices Act
Definition: Federal law governing third-party debt collectors’
conduct—barring harassment, false representations, and unfair practices.
Why it matters: Form letters, time-barred debt, and voicemail/disclosure
issues frequently spawn class actions.
Watch for:
- Misleading settlement offers or credit-report threats.
- Calls at odd hours or to workplaces after a stop request.
- Overshadowing validation rights in initial notices.
HIPAA
Health Insurance Portability and Accountability Act
Definition: Sets privacy/security standards for protected health information
(PHI) handled by covered entities and business associates.
Why it matters: Breaches, tracking pixels on patient portals, and
unauthorized sharing can drive enforcement and parallel privacy suits.
Key points:
- Minimum necessary rule; BAAs with vendors.
- Breach notification timelines and content.
Lanham Act (False Advertising)
15 U.S.C. § 1125(a)
Definition: Federal trademark law also allowing competitors to sue over false
or misleading advertising that harms commercial interests.
Why it matters: While typically competitor vs. competitor, facts may overlap
with consumer false-ad class cases.
Signals:
- Objective claims lacking substantiation.
- Comparative ads that confuse or misstate performance.
Magnuson–Moss Warranty Act
Consumer product warranties (federal)
Definition: Sets rules for written warranties on consumer products—clarity,
disclosure, and limits on tying warranty coverage to branded parts/service.
Why it matters: Defective products and warranty denials often proceed as
class actions under state law + MMWA.
Look for:
- “Warranty void if removed” stickers/tying provisions.
- Failure to honor repair/replace/refund promises.
TCPA
Telephone Consumer Protection Act
Definition: Limits robocalls, autodialed texts, and prerecorded messages to
cell phones and certain lines without prior consent; regulates do-not-call rules and fax ads.
Why it matters: One of the most active class-action statutes—per-call/text
statutory damages add up fast.
Hot issues:
- What counts as an autodialer or prerecorded voice.
- Proof of prior express (written) consent.
- DNC violations and revocation of consent.
Abuse of Discretion
Standard of review on appeal
Definition: A deferential appellate standard asking whether the trial judge
made a clearly unreasonable, arbitrary, or untenable decision.
Why it matters: Many settlement approvals, fee awards, and discovery rulings
are reviewed under this standard.
Practical note:
- Hard to overturn unless record shows clear error.
- Objectors face a steep appellate climb.
Tolling
Deadline Extension Rule
Definition
A legal rule that pauses or extends the statute of limitations, often while a class action is pending.
Why it matters
Protects individual class members’ claims from expiring while certification is decided.
- Derived from the American Pipe decision
- Applies to putative class members
- Helps preserve rights during litigation
Notice and Opt-Out Rights
Class Member Protections
Definition
The right of class members in Rule 23(b)(3) cases to receive notice of the lawsuit and the opportunity to
exclude themselves.
Why it matters
Ensures due process and lets individuals pursue their own claims if they prefer.
- Applies mainly in damages classes
- Notice must be clear and accessible
- Opt-outs are not bound by the settlement
Objector
Settlement Participant Role
Definition
A class member who formally challenges the terms of a proposed settlement or attorneys’ fees.
Why it matters
Provides oversight and can improve fairness, but can also delay final approval.
- Must submit objections by a deadline
- Courts evaluate objections at fairness hearings
- Some objectors are good-faith, others strategic
Release of Claims
Settlement Effect
Definition
A provision in a settlement where class members give up the right to sue over issues covered by the
agreement.
Why it matters
Finalizes disputes and gives defendants certainty that claims are resolved.
- Scope must be clear and limited
- Binding on all members who do not opt out
- Reviewed by courts for fairness
Service Award
Representative Incentive
Definition
A payment to class representatives recognizing their effort and risk in bringing the lawsuit.
Why it matters
Encourages individuals to step forward and represent the class.
- Common in settlements, subject to court approval
- Amounts vary widely
- Courts ensure awards are reasonable
Commonality
Rule 23(a)(2) Requirement
Definition
A class certification requirement that there are questions of law or fact common to the class.
Why it matters
Ensures that the case involves issues that can be resolved for all members in a single proceeding.
- Focuses on shared legal or factual issues
- Does not require identical claims
- Key factor in early certification rulings
Numerosity
Rule 23(a)(1) Requirement
Definition
A certification requirement that the class is so large that joining all members individually would be
impractical.
Why it matters
Courts typically find classes of 40 or more satisfy numerosity.
- Promotes efficiency of group litigation
- Prevents overcrowding the court with individual suits
- Exact minimum number is flexible
Objector Appeal
Post-Settlement Action
Definition
An appeal filed by a class member who objects to the approval of a settlement or attorneys’ fees.
Why it matters
Can delay final resolution and distribution of settlement funds.
- Filed in appellate courts after final approval
- Courts review for fairness and legality
- Some are good-faith, others deemed frivolous
Notice by Publication
Settlement Communication Method
Definition
A form of notice to class members delivered through newspapers, magazines, or online ads instead of
direct mail or email.
Why it matters
Used when class members are hard to identify or reach directly.
- Supplements direct notice methods
- Must meet due process standards
- Often combined with digital outreach
Distribution Plan
Settlement Administration Step
Definition
The court-approved method for dividing settlement funds among class members.
Why it matters
Determines how much each class member actually receives.
- Can be equal shares, proportional, or tiered
- Must be fair and reasonable
- Implemented by settlement administrators
Tolling Agreement
Procedural Term
Definition
A contract that pauses or extends the statute of limitations period, giving parties more time to
negotiate or file a lawsuit.
Why it matters
In class actions, tolling agreements can preserve claims while settlement talks or related cases are
ongoing.
- Prevents claims from expiring during negotiations
- Can reduce unnecessary filings
- Often used in complex or multi-district litigation
Bellwether Trial
Litigation Term
Definition
A test case in mass litigation used to gauge how juries might respond to evidence and arguments.
Why it matters
Bellwether trials help predict outcomes and encourage settlement in large-scale cases.
- Provides insight into jury reactions
- Helps parties assess risk and settlement value
- Common in multidistrict litigation (MDL)
Lodestar Method
Attorney Fees
Definition
A way courts calculate attorney fees by multiplying reasonable hours worked by a reasonable hourly rate,
sometimes adjusted by a factor.
Why it matters
Used to evaluate whether class counsel’s requested fees are fair and proportional.
- Promotes transparency in fee awards
- Balances compensation against results
- May be compared with percentage-of-fund method
Cyclical Notice
Notice Practice
Definition
A strategy where class members receive reminders or repeated notifications about their right to
participate in or claim from a settlement.
Why it matters
Improves claims rates by ensuring class members don’t miss important deadlines.
- Helps reach people who ignore the first notice
- Encourages higher participation rates
- Supports fairness and due process
Collateral Estoppel
Legal Doctrine
Definition
A rule preventing parties from relitigating an issue that has already been decided in another case
involving the same parties.
Why it matters
In class actions, it can stop defendants from re-arguing issues already resolved against them.
- Promotes judicial efficiency
- Protects class members from inconsistent rulings
- Encourages settlement and finality
Opt-In Class
Participation Structure
Definition
A type of class action where individuals must affirmatively join the lawsuit to be included, often used
in wage-and-hour or FLSA cases.
Why it matters
Participation is limited to those who take action, which can reduce class size but ensure active
claimants.
- Common in federal labor law cases
- Requires written consent or form submission
- Different from opt-out classes, where all are included unless excluded
Rule 23
Federal Rule of Civil Procedure
Definition
The section of the Federal Rules of Civil Procedure that governs how class actions are certified,
managed, and resolved in U.S. federal courts.
Why it matters
Rule 23 sets the framework for when a case can proceed as a class action and what protections are
required for absent class members.
- Defines prerequisites like numerosity, commonality, typicality, and adequacy
- Outlines notice and approval requirements for settlements
- Ensures fairness and efficiency in handling group claims
Notice by Publication
Settlement Notice Method
Definition
A way of notifying potential class members through newspapers, magazines, online ads, or other media
rather than direct mail or email.
Why it matters
Often used when class members are difficult to identify or widely dispersed.
- Supplements direct notice methods
- Courts evaluate adequacy for due process
- Important in consumer cases with large unknown classes
Objector Appeal
Post-Settlement Procedure
Definition
An appeal filed by a class member who objected to a proposed settlement and challenges the court’s
approval.
Why it matters
Can delay distribution of settlement funds and affect finality of approval.
- Courts distinguish between good-faith and “professional” objectors
- Appeals may improve fairness or transparency
- Often resolved by appellate courts before settlement proceeds
Cy Près-Only Distribution
Settlement Structure
Definition
A settlement where none of the funds are distributed directly to class members, but instead go entirely
to third-party organizations aligned with the class’s interests.
Why it matters
Courts scrutinize these arrangements closely for fairness and class benefit.
- Used when direct payments are infeasible
- Recipients must be relevant to the class’s claims
- Sometimes challenged as offering little actual relief to class members
Accrual of Claim
When the clock starts (limitations)
Definition: The moment a cause of action legally “begins,” starting the
statute of limitations period.
Why it matters: Late filing can bar class claims; discovery rule may delay
accrual.
Watch for:
- Fraudulent concealment tolling.
- Injury vs. discovery of injury.
Adequacy of Representation
FRCP 23(a)(4) requirement
Definition: The named plaintiffs and class counsel must fairly and adequately
protect the interests of the class.
Why it matters: Conflicts or inattentive reps can defeat certification or
settlement approval.
Signals:
- Experienced counsel, active representatives.
- No antagonistic interests among class members.
Affirmative Defense
Defendant’s burden to prove
Definition: A legal defense that, even if the complaint’s facts are true,
avoids liability (e.g., statute of limitations, consent).
Why it matters: Can narrow class scope or defeat claims at summary judgment.
Common examples:
- Arbitration, waiver, laches, preemption.
- Safe harbor and compliance defenses.
Alternative Dispute Resolution (ADR)
Mediation & arbitration tools
Definition: Processes to resolve disputes outside trial, including mediation
(facilitated negotiation) and arbitration (binding decision).
Why it matters: Many class settlements follow private mediations with neutral
facilitators.
Notes:
- Mediator’s proposals often bridge gaps.
- Arbitration clauses can block class cases.
Amended Complaint
Updated pleading after filing
Definition: A revised complaint adding facts, parties, or claims (often after
a motion to dismiss).
Why it matters: Strengthens allegations and class definitions before
certification fights.
Tip:
- Mind relation-back and limitation periods.
American Rule (Attorney’s Fees)
Each side pays its own—usually
Definition: Default U.S. rule: parties bear their own fees unless a statute
or contract shifts fees.
Why it matters: Many consumer statutes allow fee-shifting to encourage
enforcement.
In class cases:
- Common-fund percentage or lodestar multipliers are typical.
Ancillary Relief
Relief beyond damages
Definition: Additional remedies that support the main judgment (e.g.,
declaratory relief, monitoring, audits).
Why it matters: Often paired with injunctive reforms to prevent future harm.
Examples:
- Compliance reporting; training requirements.
Answer (Pleading)
Defendant’s response to complaint
Definition: A formal filing admitting or denying allegations and asserting
defenses.
Why it matters: Frames issues for discovery and class certification briefing.
Includes:
- Affirmative defenses; jury demand; counterclaims (sometimes).
Appeal Bond
Security during appeal
Definition: A bond posted by an appellant to cover costs and protect the
judgment during appeal.
Why it matters: Can deter frivolous appeals that delay distributions.
Note:
- Amount varies by jurisdiction and case type.
Bench Trial
Trial before a judge, not a jury
Definition: The judge is the fact-finder and issues findings of fact and law.
Why it matters: Some certified issues may be tried to the bench depending on
claims and waivers.
Compare:
- Jury trial where available by statute or constitution.
Benefit of the Bargain
Damages theory in misrepresentation
Definition: Measures damages as the difference between the value promised and
the value received.
Why it matters: Common in false advertising and product mislabeling cases.
Tip:
- Often supported by price premium or conjoint evidence.
Binding Precedent
Controlling case law
Definition: Prior decisions from higher courts that must be followed by lower
courts in the same jurisdiction.
Why it matters: Drives outcomes on certification, standing, and damages
models.
Hierarchy:
- Supreme Court → Circuit Court → District Court (federal).
Fiduciary Duty
Loyalty & care obligations
Definition: Duties owed by certain actors (e.g., trustees, corporate
officers) to act in others’ best interests.
Why it matters: Forms basis for investor, ERISA, and corporate governance
class actions.
Claims:
- Breach of loyalty, care, prudence, diversification (ERISA).
Final Judgment Rule
Appeals usually only after final decision
Definition: Parties generally may appeal only from a final decision that ends
the case in the trial court.
Why it matters: Limits piecemeal appeals; some orders are immediately
appealable by statute.
Exceptions:
- Class-certification orders (Rule 23(f) discretionary review).
- Interlocutory injunctions.
Forum Non Conveniens
Inconvenient forum doctrine
Definition: A court may dismiss or transfer a case if another forum is
significantly more convenient and appropriate.
Why it matters: Impacts nationwide classes and multi-state claims strategy.
Factors:
- Access to proof, witnesses, local interest, court congestion.
Forum Selection Clause
Contractual venue choice
Definition: A contract term designating the court/location for any disputes.
Why it matters: Can thwart nationwide classes by forcing suits into
particular courts.
Check:
- Enforceability, consumer fairness, state law limits.
Frivolous Litigation
Sanctionable filings
Definition: Claims without legal or factual basis, potentially subject to
Rule 11 or state-law sanctions.
Why it matters: Deterrent against abusive tactics; affects fee-shifting
motions.
Note:
- Courts distinguish weak claims from sanctionable ones.
Garnishment
Post-judgment collection tool
Definition: Legal process to collect on a judgment by seizing a debtor’s
wages or funds held by third parties.
Why it matters: Relevant when defendants fail to pay judgments or settlement
obligations.
Limits:
- Federal and state caps on wage garnishment apply.
General Jurisdiction
Court’s power over a defendant for all claims
Definition: Where a defendant is “at home” (e.g., incorporation, principal
place of business) and can be sued for any claim.
Why it matters: Class actions must fit personal-jurisdiction limits,
especially for out-of-state class members.
Compare:
- Specific jurisdiction tied to forum-related conduct.
Good Faith Settlement
Bar to contribution claims (some states)
Definition: Court finding that a settlement was made in good faith, often
protecting settling defendants from contribution claims by non-settlers.
Why it matters: Encourages partial settlements in multi-defendant class
cases.
Factors:
- Settlement amount, relative fault, collusion checks.
Hearing on the Merits
Substantive decision stage
Definition: Court evaluates and decides issues based on evidence and law, not
just procedure.
Why it matters: Key for injunctions, summary judgment, and final
determinations.
Prep:
- Record development is critical for any appeal.
Hold Harmless Agreement
Indemnity/waiver clause
Definition: A promise to indemnify or not hold another party liable for
certain losses.
Why it matters: Can impact third-party claims and allocation of risk in
settlements.
Check:
- Scope, exclusions, and state-law enforceability.
Hybrid Class Action
Rule 23 + collective (FLSA) mix
Definition: Cases that combine a Rule 23 state-law class with an FLSA opt-in
collective.
Why it matters: Different notice standards, opt-in vs. opt-out mechanics, and
settlement approvals may apply.
Complexity:
- Separate releases and allocation plans are common.
Identity Theft Protection Services
Common data-breach remedy
Definition: Credit monitoring, dark web scans, and restoration help provided
to victims of data breaches.
Why it matters: Often offered along with cash, reimbursements, and security
commitments.
Look for:
- Duration (12–36 months), coverage scope, enrollment steps.
Implied Warranty of Merchantability
UCC consumer protection concept
Definition: Implied promise that goods are fit for ordinary use.
Why it matters: Product defect class actions often include implied warranty
claims alongside consumer statutes.
Issues:
- Privity requirements vary by state.
Injunctive Class
Rule 23(b)(2) class type
Definition: A class primarily seeking uniform injunctive or declaratory
relief rather than individualized money damages.
Why it matters: Common for practice changes (privacy, accessibility,
labeling).
Note:
- Due process differs from (b)(3) damages classes.
Interlocutory Appeal
Appeal before final judgment (limited)
Definition: Appellate review of certain non-final orders (e.g., injunctions,
class cert under Rule 23(f)).
Why it matters: Can accelerate resolution of threshold issues affecting class
scope.
Caveat:
- Often discretionary; strict timing rules apply.
Joint and Several Liability
Multiple defendants, full recovery rule
Definition: Each liable defendant can be responsible for the entire judgment,
subject to contribution rights.
Why it matters: Influences settlement strategy and allocation among
defendants.
State variations:
- Many states limit or modify the doctrine.
Key Employee Retention Plan (KERPs)
Bankruptcy compensation topic
Definition: Plans to retain critical employees during bankruptcy; subject to
court review.
Why it matters: Can affect recoveries in consumer cases tied to insolvent
defendants.
Scrutiny:
- Reasonableness, necessity, and optics with creditors.
Key Terms Sheet
Settlement negotiation outline
Definition: A short document capturing the main settlement points before full
agreement drafting.
Why it matters: Aligns parties on fund size, class scope, notice, release,
and fees early.
Best practice:
- Note “subject to court approval” and mediator confirmation when applicable.
Knowledge / Scienter
Intent element in fraud claims
Definition: Mental state showing intent to deceive or reckless disregard for
truth.
Why it matters: Securities and fraud claims often require particularized
scienter allegations.
Evidence:
- Internal emails, motive/opportunity, core operations.
Lead Counsel
Court-appointed coordinating firm(s)
Definition: Law firm(s) selected to coordinate and manage the class case on
behalf of all class members.
Why it matters: Shapes case strategy, work allocation, and fee petitions.
Selection factors:
- Experience, resources, results, and proposed leadership structure.
Legal Hold
Preservation of evidence notice
Definition: Instruction to preserve potentially relevant data once litigation
is reasonably anticipated.
Why it matters: Spoliation can trigger sanctions and adverse inferences
against a party.
Scope:
- Emails, chats, logs, databases, mobile devices, backups.
Limited Fund Class Action
Rule 23(b)(1)(B) scenario
Definition: Class certified when a finite fund must be equitably distributed
among class members to avoid inconsistent adjudications.
Why it matters: Affects opt-out rights and distribution mechanics.
Consider:
- Proof of limited fund and fairness safeguards.
Liquidated Damages
Pre-set damages in contracts/statutes
Definition: Agreed or statutory sums for certain violations (e.g., wage
statutes).
Why it matters: Can simplify proof and support class-wide damages models.
Limits:
- Must not be punitive; reasonableness at time of contracting.
Litigation Privilege
Immunity for certain litigation statements
Definition: Protects parties and counsel from liability for statements made
in the course of judicial proceedings.
Why it matters: Limits collateral suits based on pleadings and motions
practice.
Scope varies:
- Check state law contours and exceptions.
Long-Form Notice
Detailed settlement notice (website/PDF)
Definition: Comprehensive notice with full terms, definitions, deadlines, and
FAQs.
Why it matters: Court reviews adequacy; guides class members on rights and
claims.
Includes:
- Who’s included, benefits, how to claim, opt out, or object.
Material Misrepresentation
Fact that would matter to a reasonable consumer
Definition: A false or misleading statement/omission likely to influence
purchasing decisions.
Why it matters: Central element in false advertising, securities, and
consumer protection claims.
Proof:
- Surveys, testing, substantiation, internal documents.
Mediation Confidentiality
Protects settlement talks and documents
Definition: Rules shielding mediation communications from discovery and use
at trial.
Why it matters: Encourages candid negotiation in class settlement mediations.
Caveats:
- State-specific statutes; privilege contours vary.
Meet and Confer Requirement
Pre-motion consultation duty
Definition: Parties must discuss disputes in good faith before filing many
motions (discovery, scheduling).
Why it matters: Failure can result in denial of motions or sanctions.
Best practice:
- Document efforts with dates and participants.
Merger (Integration) Clause
Contract is the full agreement
Definition: Clause stating the written contract supersedes prior statements
or promises.
Why it matters: Can limit fraud/misrepresentation claims based on
pre-contract marketing—but not always.
Check:
- State law on reliance and consumer protection overrides.
Motion in Limine
Pretrial evidence ruling request
Definition: Motion to admit or exclude specific evidence before trial to
streamline proceedings.
Why it matters: Shapes what the jury hears in class trials (if any).
Targets:
- Prejudicial or irrelevant materials, expert opinions.
Motion to Compel Arbitration
Enforce arbitration clause
Definition: Request that court require the dispute to proceed in arbitration
per a contract.
Why it matters: Can block or break up class litigation into individual
arbitrations.
Issues:
- Assent, unconscionability, delegation, waiver by litigation conduct.
Motion to Dismiss for Lack of Standing
Article III injury requirement
Definition: Argues plaintiff lacks concrete injury traceable to defendant and
redressable by the court.
Why it matters: Threshold barrier to many privacy and labeling class actions.
Watch:
- Evolving precedent on intangible harms and data misuse.
MDL Transfer (Multi-District Litigation)
Centralization by JPML (28 U.S.C. § 1407)
Definition: Consolidates related federal cases for coordinated pretrial
proceedings.
Why it matters: Efficiency in discovery, consistent rulings, and global
settlements in mass harms.
Note:
- Cases typically remanded for trial if not settled.
Negligent Misrepresentation
Careless false statements claim
Definition: Liability for supplying false information without reasonable
care, causing reliance and loss.
Why it matters: Often pled alongside fraud and consumer protection statutes.
Elements vary:
- Reliance, duty, causation, and damages standards differ by state.
Nominal Damages
Symbolic $ award recognizing a right
Definition: Small sum awarded where rights were violated but no provable
economic loss.
Why it matters: Can keep claims alive and support injunctive relief or fee
petitions in some regimes.
Note:
- Intersects with standing and mootness doctrines.
Parens Patriae Action
State AG suit on behalf of residents
Definition: Attorney General litigates to protect the public interest, often
under consumer protection laws.
Why it matters: Can complement or compete with private class actions; may
yield restitution and penalties.
Remedies:
- Injunctions, restitution, civil penalties, monitoring.
Particularity Requirement (Rule 9(b))
Pleading fraud with specifics
Definition: Fraud-based claims must state the who/what/when/where/how of the
misrepresentation.
Why it matters: Insufficient detail can lead to dismissal before discovery.
Tip:
- Use exemplars, dates, labels, ads, and internal docs if available.
Plaintiff Fact Sheet (PFS)
MDL discovery questionnaire
Definition: Standardized forms collecting key facts from claimants in mass
tort/data breach MDLs.
Why it matters: Drives case vetting, bellwether selection, and settlement
grids.
Contents:
- Exposure/usage, injuries, medical/billing, documents.
Plea in Abatement
Older term for procedural objections
Definition: A historical/procedural device challenging suit defects (venue,
parties) without reaching merits.
Why it matters: Modern equivalents include motions to dismiss for improper
venue or nonjoinder.
Modern practice:
- Handled via Rules 12(b), 12(e), 12(f) motions.
Post-Judgment Relief
Changing or enforcing judgments
Definition: Motions to alter, amend, or obtain relief from a judgment; tools
to enforce or stay execution.
Why it matters: Impacts timing of distributions and accrual of interest.
Tools:
- Rules 59/60, writs, liens, garnishments.
Preliminary Injunction
Early court order to maintain status quo
Definition: Temporary relief requiring likelihood of success, irreparable
harm, and balance of equities.
Why it matters: Can halt harmful practices while class case proceeds.
Evidence:
- Affidavits, consumer declarations, expert declarations.
Preservation Order
Court mandate to keep evidence intact
Definition: Directs parties to preserve documents, ESI, and physical
evidence.
Why it matters: Prevents spoliation in data-heavy consumer and privacy cases.
Scope:
- Collection, litigation holds, suspension of auto-deletion.
Prevailing Party
Fee-shifting trigger in some statutes
Definition: The party who wins relief on the merits or via consent judgment,
qualifying for fees by statute/contract.
Why it matters: Drives attorney-fee petitions in consumer rights cases.
Question:
- Whether a settlement makes plaintiffs “prevailing” depends on jurisdiction and judgment form.
Primary Law
Constitutions, statutes, regs, cases
Definition: Binding sources of law that courts apply to decide disputes.
Why it matters: Class actions turn on what primary law requires and whether
defendants complied.
Use with:
- Secondary sources to locate/analyze rules.
Secondary Law
Treatises, articles, restatements
Definition: Non-binding commentary explaining or summarizing primary law.
Why it matters: Helps courts and parties interpret statutes and cases;
persuasive only.
Examples:
- Wright & Miller, law review, ALI Restatements.
Terms of Use Consent
Clickwrap vs. browsewrap assent
Definition: How a site/app obtains agreement to its terms—clear, proximate
consent (clickwrap) is more enforceable than passive links (browsewrap).
Why it matters: Enforceability of arbitration, class waivers, and limitations
turns on the consent flow design.
Best practices:
- Checkbox + hyperlink near the action button.
- Record consent timestamp and versioning.
Unclaimed Funds
Also known as: Escheat / Unclaimed Property
Definition: Money owed to individuals that goes uncashed or unclaimed (e.g.,
checks, credits) and may be turned over to state unclaimed property programs.
Why it matters: Settlement checks that expire or can’t be delivered may end
up with state agencies; consumers can search and claim later.
Tip:
- Search your state’s unclaimed funds site (e.g., NY OSC, NAUPA MissingMoney).
Unique Settlement ID / Notice ID
Claim invitation code from the administrator
Definition: A code in your email or mailed notice that links your contact
info to the claim portal for a specific settlement.
Why it matters: Speeds up verification; not always required—many portals
allow lookup by name and email.
If missing:
- Use “No code?” link on portal to search.
- Contact the administrator with proof of purchase.
Open vs. Closed Settlements
Claims period status
Definition: “Open” means the claim portal is live (before the deadline).
“Closed” means the deadline passed or all payments were distributed.
Why it matters: Closed cases may still pay late if checks reissue or via
unclaimed property; otherwise, no new claims are accepted.
Watch for:
- Updated deadlines on the admin site.
- Second distributions if funds remain.
Washington Consumer Protection Act (CPA)
RCW 19.86 et seq.
Definition: Prohibits unfair or deceptive acts in trade or commerce that
affect the public interest.
Why it matters: Allows private suits, AG actions, and treble damages up to a
cap for consumers.
Elements:
- Unfair/deceptive act; trade/commerce; public interest impact; injury; causation.
WARN Act
Worker Adjustment and Retraining Notification (federal & state “mini-WARNs”)
Definition: Requires certain employers to give advance notice of plant
closings or mass layoffs.
Why it matters: Short-notice layoffs can trigger class/collective claims for
back pay and benefits.
Notes:
- Coverage thresholds vary; some states are stricter.
Securities Settlement
Stock/ADR investor class actions
Definition: Settlement resolving claims that a company misled investors,
affecting share price (e.g., Exchange Act §10(b)/Rule 10b-5).
Why it matters: Investors file claims with trading records; lead
plaintiff/counsel appointed under PSLRA.
Typical proofs:
- Broker statements (buys/sells), trade confirmations.
Certified Class & Class Representatives
FRCP 23 adequacy & typicality
Definition: A “certified class” is a court-approved group with named
representatives who litigate on behalf of all members.
Why it matters: Certification enables collective relief and trial/settlement
leverage.
Requirements:
- Numerosity, commonality, typicality, adequacy.
- Representatives protect the class’s interests.
Open vs. Closed Class Actions
Claims status & deadlines
Definition: “Open” means claims are being accepted; “Closed” means the filing
deadline has passed or distribution is complete.
Why it matters: Prioritize open cases with active claim forms.
Tips:
- Check claim, exclusion, and objection deadlines.
- Closed cases may still have appeals or residual payments.
Unclaimed Class Action Money
Residual funds
Definition: Settlement money left after some class members don’t file or cash
payments.
Why it matters: Courts may order redistribution, cy pres donations, or
remittance to states as unclaimed property.
Common outcomes:
- Second distribution to valid claimants.
- Cy pres to aligned nonprofits.
- Transfer to state unclaimed funds.
Securities Settlements
PSLRA; investor claims
Definition: Class actions over securities fraud or misstatements affecting
stock or bond purchasers.
Why it matters: Often large funds; claims require trade data and proof of
transactions.
Notes:
- Lead plaintiff is typically an institutional investor.
- Loss causation and damages models drive payouts.
WARN Act
Worker Adjustment and Retraining Notification Act
Definition: Federal law requiring covered employers to give 60-day notice
before certain mass layoffs or plant closures.
Why it matters: Employees may recover back pay and benefits for violations;
often brought as class cases.
Coverage:
- Generally 100+ employees.
- Exceptions exist for unforeseeable business circumstances.
PAGA / FLSA
California Private Attorneys General Act; Fair Labor Standards Act
Definition: PAGA lets workers enforce CA labor code penalties; FLSA is the
federal wage-and-hour law covering minimum wage/overtime with collective actions.
Why it matters: Foundation for many wage-hour class and representative
actions.
Key points:
- PAGA penalties partly go to the state.
- FLSA collective actions require opt-in consent.
Antitrust Laws
Sherman Act; Clayton Act; FTC Act
Definition: Laws that prohibit price-fixing, bid-rigging, monopolization, and
other anti-competitive conduct.
Why it matters: Enable large consumer and direct/indirect purchaser class
actions.
Signals:
- Parallel pricing without justification.
- Market allocation or information exchanges among competitors.
Medicaid Fraud
False Claims; Qui Tam actions
Definition: Fraudulent billing or improper claims to state/federal Medicaid
programs.
Why it matters: Leads to government recoveries and compliance reforms;
sometimes related consumer restitution.
Examples:
- Upcoding, unnecessary services, kickbacks.
- Whistleblowers can receive a share of recoveries.
Opt-Out Prescreen (Mail Opt-Out)
optoutprescreen.com
Definition: The official site to stop pre-screened credit/insurance offers
that use your credit data.
Why it matters: Reduces junk mail and limits exposure of personal info.
Options:
- 5-year electronic opt-out.
- Permanent opt-out by mail confirmation.
Skim the terms before filing a claim or reading a notice email. Focus on deadlines, what the
release covers, and whether benefits are claims-made or from a common fund.
For subscription cases, check ARL and ROSCA terms and any injunctive relief that
improves cancellation or disclosures.
How Do I Find Class Action Settlements?
Find all the latest class actions you can qualify for by getting notified of new lawsuits as soon as they are open to claims:
•
FTC Negative Option guidance
•
Federal Rule of Civil Procedure 23 (Class Actions)
•
ROSCA (15 U.S.C. §§ 8401–8405)