Class-Action Reform Revived in Senate

Fees in class action settlements based on coupons instead of cash would be based on the number of coupons actually redeemed by class members rather than a predetermined cash fee under compromise federal class-action reform legislation announced last week. The compromise version of the Class Action Fairness Act was worked out shortly before the Senate recessed for Thanksgiving. The act would permit removing certain class actions in which the plaintiffs and defendants were from different states to federal court from state court, a change supporters of the act claim is necessary to prevent so-called “forum-shopping.” The measure came up before the Senate in late October, but supporters fell one vote short of the 60 needed to halt debate on the measure and move it toward a vote.