Use of Mediation in Class Action Settlements Helpful for Court Approval
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A federal court in Moore v. Verizon Communications Inc. approved the mediated settlement of litigation against Verizon on behalf of a nationwide class of Verizon customers who had been “crammed” or billed unauthorized charges. The court noted that the parties’ decision to settle was fully informed in part due to the extensive exchange of information for mediation, multiple briefings during mediation, and six full-day mediation sessions over the course of a year. The court also relied on the experience of the mediator and his support for the settlement, and concluded that there was no fraud or collusion based on the scope of the mediation and the mediator’s description of the process. Further, in Custom LED, LLC v. eBay, Inc., in analyzing whether to approve the settlement of a putative class action, the court noted the fact that the parties participated in private mediation suggested that the settlement process was not collusive, but found other deficiencies that the parties needed to address prior to court approval.
Moore v. Verizon Communications Inc., No. C 09-1823 SBA (U.S.D.C. N.D. Cal., August 28, 2013), Custom LED, LLC v. eBay, Inc., No. 12-cv-00350-JST (U.S.D.C. N.D. Cal., Aug. 27, 2013).
Read original articleTags: settlement of litigation, Verizon, Verizon Communications Inc.
