Yesterday, the Ninth Circuit affirmed the well-publicized $25 million settlement in the fraud and false advertising class action against Trump University. Sampson v. Trump University, LLC, ___ F.3d ___ (Feb. 6, 2018).
After the class was certified, the class members were provided with notice and an opportunity to opt out. Slip op. at 7-8. Thereafter, the case settled. Id. at 9-10. The class members were then given a second notice, summarizing the settlement terms and providing an opportunity to object, but no second opportunity to opt out. Id. The objector argued that the original notice led her to believe that a second opt-out opportunity would be afforded. Id. at 10. She also argued that as a matter of due process, she should have been given a second chance to opt out. Id. at 18.
The Ninth Circuit disagreed with both contentions. Id. at 12-20.
On the due process issue, the panel pronounced: "Our precedent squarely forecloses this argument." Id. at 18-19 (citing Officers for Justice v. Civil Service Commission, 688 F.2d 615, 622-23 (9th Cir. 1982)). "[W]hile some class action settlements allow a second opt-out opportunity, 'they are unusual and probably result from the bargaining strength of the class negotiators[]' rather than any due process concerns." Id. at 19 (quoting Officers for Justice, 688 F.2d at 635).
Comments