How and When to Object to a Class Action Settlement

Introduction

Class action settlements are designed to provide compensation to large groups of people who have been harmed by a defendant's alleged misconduct. In theory, these settlements should deliver fair and meaningful relief to class members. But what happens when a proposed settlement falls short of that goal?

While most class members simply decide whether to claim their share of a settlement or opt out entirely, there's a third option that's often overlooked: filing an objection. Objecting to a settlement allows you to voice concerns about its terms while remaining part of the class, potentially influencing the court's decision about whether to approve the settlement as proposed.

This article explores the objection process, explaining when and how to object to a class action settlement that you believe is unfair, inadequate, or unreasonable. We'll walk you through the steps of filing an effective objection and what happens after you submit one.

When to Object to a Settlement

Before filing an objection, it's important to understand when objecting makes sense. You might consider objecting to a class action settlement if:

• The compensation is inadequate: If the settlement provides minimal financial benefits to class members relative to the harm they suffered or compared to what they might recover if the case went to trial.
• The distribution method is unfair: If the process for distributing settlement funds disadvantages certain class members or makes it unnecessarily difficult to claim benefits.
• Attorney fees are excessive: If the lawyers representing the class are seeking fees that seem disproportionate to the work performed or the results achieved for class members.
• The release of claims is too broad: If the settlement requires class members to give up valuable legal rights beyond what's reasonably related to the claims in the lawsuit.
• The settlement includes cy pres provisions: If leftover settlement funds will go to third-party charities rather than class members, and you believe this is inappropriate.
• The claims process is overly burdensome: If claiming benefits requires extensive documentation or complicated steps that many class members will be unable to complete.
• The notice program was inadequate: If you believe many class members never received notice of the settlement, potentially undermining their ability to participate.
• The settlement treats class members unequally: If similarly situated class members receive significantly different benefits without reasonable justification.

It's important to note that objections should be based on genuine concerns about the fairness of the settlement, not merely a desire for larger compensation or disagreement with the allegations in the lawsuit. Courts are more likely to take seriously objections that identify specific problems with the settlement's terms or administration.

The Objection Process

Filing an objection to a class action settlement involves several specific steps that must be followed carefully:

1. Review the settlement notice: The notice you received about the settlement should include information about how to object, including deadlines and what information to include. Read this section carefully.
2. Prepare your written objection: Most courts require objections to be submitted in writing. Your objection should include: The case name and number Your full name, address, and telephone number Proof that you're a member of the class (if required) A clear statement that you object to the settlement The specific reasons for your objection Any legal support for your objection (if available) A statement indicating whether you plan to appear at the fairness hearing Your signature (or your attorney's signature if you're represented)
3. Submit your objection by the deadline: Most settlement notices require objections to be filed with the court and sent to the attorneys for both the class and the defendant by a specific date. Missing this deadline will likely result in your objection being disregarded.
4. Consider attending the fairness hearing: The court will hold a hearing to consider whether to approve the settlement. This is called a "fairness hearing" or "final approval hearing." You may have the opportunity to speak at this hearing if you've properly objected and indicated your intention to appear.

It's important to understand that simply objecting to a settlement does not exclude you from the class. If the settlement is approved despite your objection, you'll still be bound by its terms and eligible to receive any benefits. If you want to preserve your right to sue separately, you must formally opt out of the settlement, which is a different process from objecting.

Crafting an Effective Objection

Not all objections are equally persuasive to courts. To maximize the impact of your objection, consider these strategies:

• Be specific: Vague complaints about the settlement being "unfair" without specific examples or reasoning are unlikely to influence the court. Identify precise problems with the settlement terms.
• Focus on class-wide issues: Courts are more concerned with how the settlement affects the class as a whole, not just your individual situation. Frame your objection in terms of how the settlement's deficiencies affect all class members.
• Use data when possible: If you're arguing that the compensation is inadequate, try to provide context by comparing it to similar settlements or to the potential recovery at trial.
• Cite relevant legal standards: Courts must determine whether settlements are "fair, reasonable, and adequate." If possible, explain why specific aspects of the settlement fail to meet these standards.
• Be professional and respectful: Avoid inflammatory language or personal attacks on the attorneys or parties. Focus on substantive issues with the settlement itself.
• Consider alternatives: When possible, suggest specific improvements that would address your concerns while still allowing the case to be resolved through settlement.
• Keep it concise: While you want to be thorough, judges appreciate objections that get to the point. Focus on your strongest arguments rather than raising every conceivable issue.

Remember that an objection is essentially an argument to the court about why the settlement shouldn't be approved as proposed. The more compelling and well-supported your argument, the more likely it is to influence the court's decision.

What Happens After You Object

After you submit an objection to a class action settlement, several things may happen:

1. Your objection becomes part of the court record: All properly submitted objections are filed with the court and become part of the case record. The judge will review these objections before making a decision about the settlement.
2. Class counsel may respond: The attorneys representing the class typically file a response addressing objections before the fairness hearing. They may directly address your concerns or explain why they believe the settlement is fair despite your objection.
3. The court considers your objection at the fairness hearing: At the hearing, the judge will consider all objections along with other factors in deciding whether to approve the settlement. If you indicated that you planned to attend, you may have an opportunity to speak.
4. The court makes a decision: After the hearing, the court will either: Approve the settlement as proposed Reject the settlement entirely Request modifications to address concerns raised by objectors
5. Appeals may be filed: If the settlement is approved despite objections, objectors have the right to appeal that decision to a higher court. However, appeals can delay the distribution of settlement benefits to all class members for months or years.

It's important to understand that individual objections rarely result in settlements being rejected outright. More commonly, if the court finds merit in objections, it may require the parties to modify certain settlement terms before granting approval. In some cases, particularly compelling objections might lead to improved settlement terms for the entire class.

Even if your objection doesn't change the settlement, it creates a record of concerns that may influence how future settlements are structured in similar cases. Courts and attorneys pay attention to patterns in objections over time.

Getting Legal Assistance

While you can object to a class action settlement on your own, getting legal assistance may increase the effectiveness of your objection, particularly for complex settlements:

• Consult with an attorney: If you're concerned about a settlement but unsure whether your objections have legal merit, consider consulting with an attorney who specializes in class action litigation. They can help you evaluate the settlement and determine whether objecting makes sense.
• Consider representation for your objection: An attorney can draft and file your objection, ensuring it meets all procedural requirements and presents your concerns in legally persuasive terms. They can also appear at the fairness hearing on your behalf.
• Look for nonprofit legal organizations: Some public interest legal organizations focus on improving class action settlements. If your objection relates to systemic issues with how settlements are structured, these organizations might be interested in assisting or even representing you.
• Research "professional objectors": Be aware that there are attorneys who specialize in filing objections to class action settlements. While some raise legitimate concerns, others have been criticized for objecting primarily to extract payments from class counsel. Courts have become increasingly skeptical of such objectors.

If you decide to seek legal assistance, be clear about any fees or costs involved. Most attorneys will charge for representing objectors, although some may take cases on a contingency basis if they believe there's a significant chance of increasing the settlement value through the objection.

Opting Out vs. Objecting

It's important to understand the difference between objecting to a settlement and opting out of it, as these actions have very different consequences:

In some cases, you might consider both objecting and opting out as backup strategies. For example, you could file an objection explaining your concerns, but also opt out before the deadline in case your objection is unsuccessful. However, this approach only makes sense if you're seriously considering individual litigation if the settlement is approved.

The right choice depends on your specific situation:

• Choose to object if you want to remain in the class and receive benefits, but believe the settlement could be improved for everyone.
• Choose to opt out if you believe your individual claim is significantly stronger than what the settlement offers and you're willing to pursue separate litigation.
• Do both only if you have strong objections but are also prepared to pursue your own lawsuit if necessary.

Conclusion

Objecting to a class action settlement is an important right that allows class members to advocate for fairer outcomes. While most class members simply accept or reject settlements, thoughtful objections can play a crucial role in the judicial oversight of class actions, helping to ensure that settlements truly serve the interests of the people they're meant to compensate.

If you're considering objecting to a settlement, take time to thoroughly review the settlement terms, identify specific concerns, and prepare a clear, well-reasoned objection that follows all procedural requirements. Remember that the goal isn't just to increase your own compensation, but to improve the fairness of the settlement for all class members.

At GetBack, we believe in empowering consumers to make informed decisions about class action settlements. While we focus primarily on helping people find and claim settlements they qualify for, we also support consumers' rights to object when settlements fall short of providing fair compensation. Whether you decide to participate in a settlement, object to its terms, or opt out entirely, having a clear understanding of your options is essential to protecting your rights.