Settlement opinions are often not that interesting. The vast
majority of them are by-the-numbers approvals of proposed
settlements that offer little insight about how Rule 23 works. This
is especially true of preliminary approval opinions. But
every once in a while, a court refuses even the preliminary
approval of a settlement. When that happens, class action
lawyers can usually learn a few things about how
not to settle a case.
Better v. YRC Worldwide Inc., No. 11-2072-KHV, 2013 U.S. Dist.
LEXIS 163569 (D. Kan. Nov. 18, 2013), is such a case. It was a
proposed settlement of a securities class action that was denied
preliminary approval twice. Why? Because settling counsel tried
several tactics the court viewed unfavorably. Among them:
