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ARTICLE · 06 DECEMBER 2019

Ninth Circuit Order Vacating Class Certification in Vargas v. Lott

Cleary Gottlieb Steen & Hamilton LLP
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In 2017, Ford and putative class counsel reached a settlement agreement that afforded two forms of relief to the proposed class.

United StatesLitigation, Mediation & Arbitration

Key Issue

Whether a district court conducted a sufficiently comprehensive review in granting final approval of a settlement class given objections concerning (1) the actual relief the class would receive and (2) the presence of a "clear sailing" provision under which defendant Ford Motor Company would not object to class counsel's fee request.

Background

In Vargas v. Ford Motor Co., a proposed class of consumer plaintiffs brought misrepresentation and warranty claims against Ford for alleged defects in certain Ford transmission systems used in its Fiesta and Focus vehicles for certain model years.13 The defects allegedly caused delayed shifting, delayed acceleration, and premature internal wear on the transmission system.14

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