On November 1, 2018, the Northern District of California updated
its Procedural Guidance for Class Action
Settlements, requiring increased disclosures for settlement
preliminary and final approval, and more transparency in
post-distribution accounting. Failure to follow the Guidance may
result in delay or denial of settlement approval. This article
highlights the most significant updated rules affecting class
action settlements in the Northern District.
- Preliminary Approval
The Procedural Guidance details twelve buckets of information
(many with subparts) parties must provide to the Court to obtain
preliminary approval for a class action settlement, frontloading
and expanding many of the required disclosures regarding the
settlement, attorneys' fees and administrative issues. Indeed,
the Guidance recommends parties to take these requirements into
account "during settlement negotiations" and when
drafting class notices.
