Defining "Coupon" Under the Class Action Fairness Act
January 15, 2008, 12:00 AM EST
Law360, New York (January 15, 2008, 12:00 AM EST) -- The Class Action Fairness Act (“CAFA”) subjects “coupon settlements” to special rules governing court approval and plaintiffs’ attorneys’ fees, but CAFA does not define the term “coupon,” and even after three years of experience with CAFA, class action practitioners have little idea how broadly courts will construe the term.
Some settlements clearly fall within the coupon rules. If class members can receive nothing more than the ability to buy a new product from the defendant at a discounted price, that is clearly a “coupon settlement.”...