11th Circ. Ruling Threatens Class Rep Incentive Awards

Law360 (October 8, 2020, 1:16 PM EDT) -- In a decision that may upend class action practice, the U.S. Court of Appeals for the Eleventh Circuit in Johnson v. NPAS Solutions LLC vacated a district court's approval of a class settlement, holding that two 19th century U.S. Supreme Court cases prohibit so-called incentive awards to class representatives.[1]

Incentive awards — payments to class representatives for serving in their representative role — have been somewhat common in modern-day class actions. A 2006 study of cases from 1993 to 2002 found that incentive awards were granted in 28% of settled class actions.[2] The study further found that the average award per...

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