Identification Of Absent Class Members: How Much Effort Is Enough?

How much effort must parties to a class action settlement expend in order to ensure that all class members have notice of the settlement and an opportunity to object? Rule 23(c)(2)(B) requires "reasonable effort," but when does ensuring individual notice become "unreasonable"?

A recent Third Circuit opinion underscores that compliance with Rule 23(c)(2)(B) is not to be taken lightly. In Larson v. AT&T Mobility, LLC, the Third Circuit reversed a district court's determination that notice by publication would be sufficient.

The plaintiffs filed suit against cellular phone service providers who included a flat-rate early termination fee (ETF) in their cellular contracts, alleging that the fees were penalties that violated the Federal Communications Act and state consumer protection laws. The plaintiffs then entered into a $17.5 million settlement agreement with Sprint.