In the recent legal news, the U.S. Court of Appeals for the Fourth Circuit made a significant ruling concerning class action waivers and their role in class action litigations. The Fourth Circuit held that class action waiver issues must be decided before class certification. This decision, rendered in the case In re Marriott International, Inc., 78 F.4th 677 (4th Cir. 2023), has important implications for class action law. Legal professionals working in both corporate and law firm settings need to be acutely aware of this ruling and its potential impacts.
The panel for the Fourth Circuit, led by Judge Pamela Harris, unanimously vacated the certification of a class in a multidistrict litigation over a data breach. The panel held that lower courts should evaluate class action waivers prior to certifying a Rule 23 class. This ruling emphasizes the importance of addressing class action waivers at the onset of a class action litigation.
The case revolved around a data breach incident at Marriott International, a renowned global hospitality company. The multidistrict litigation brought against them consisted of several class action lawsuits filed by aggrieved parties who had suffered from the data breach. At the heart of the matter was a class action waiver issue, which, as the recent ruling indicates, needs to be settled before certifying a class under Rule 23.
This is an important decision for both corporations and law firms. Corporations, particularly those in sectors where data security breaches are more common, will want to review their existing policies regarding class action waivers. It is a prudent time for law firms to reevaluate their strategies involving class action litigation, given this ground-shifting opinion by the Fourth Circuit.
For further reading and more context regarding this important ruling, please visit the article
The Class Action Chronicle – November 2023 released by Skadden, Arps, Slate, Meagher & Flom LLP on JD Supra. This decision is likely to continue to be a subject of discussion and analysis in legal circles for some time.