Class Claims In Bankruptcy: Lessons From PacSun

Law360, New York (September 8, 2016, 12:29 PM EDT) -- The U.S. Bankruptcy Court for the District of Delaware in the case In re Pacific Sunwear of California Inc., No. 16-10882 (Bankr. D. Del.) (PacSun) recently faced the question of how to administer claims of thousands of former employees dating back almost a decade. Representatives of the former employees successfully asked the court to forego the ordinary process for administering claims in a bankruptcy case and instead use the class action process set forth in Rule 23 of the Federal Rules of Civil Procedure.

The question of whether to import Rule 23's class action mechanism in place of the ordinary bankruptcy...

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