Pampers Consumer Class Action Settlement Reversed On Appeal

In a 2-1 decision, the U.S. Court of Appeals for the Sixth Circuit vacated a class action settlement approval and certification of a settlement class that treated the named plaintiffs far more favorably than the other class members. Those class members received injunctive relief that the court described as "nearly worthless" in litigation concerning allegedly defective Pampers disposable diapers.

The Sixth Circuit's decision follows a recent trend of circuit courts reversing class action settlement approvals. These appellate decisions provide a useful framework for structuring future class action settlements that can pass appellate muster. They also compel the district courts to apply greater scrutiny to proposed class action settlement agreements during fairness hearings.