SCOTUS May Weigh In'Class Members And Article III Standing

• Published date: 16 September 2022
• Subject Matter: Antitrust/Competition Law, Litigation, Mediation & Arbitration, Antitrust, EU Competition , Class Actions, Trials & Appeals & Compensation
• Law Firm: Winston & Strawn LLP
• Author: Mr Jared R. Kessler, Drew H. Washington and Reid F. Smith

KEY TAKEAWAY:

• The Eleventh Circuit's decision in Drazen v. Pinto deepens the divide among circuit courts regarding treatment of uninjured class members in class actions.
• If the Supreme Court considers and affirms Drazen's holding that class settlements must be limited to class members with standing, fewer class actions may be filed, it could be harder to obtain class certification, and class actions may be less likely to settle early.

On August 19, 2022, we wrote about the Eleventh Circuit's decision in Drazen v. Pinto, which held that a class action settlement agreement may receive final approval only if every class member has standing to recover individual damages. 41 F.4th 1354 (11th Cir. 2022). The case is significant not only because it establishes the standing requirement for absent class members at the settlement stage, but also because it serves as bait for SCOTUS to take up the issue.

Indeed, the Drazen decision joins a host of split decisions from other circuits that have grappled with the issue of uninjured class members and whether that issue is a matter to be...