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Commercial Litigation Law Alert - The Fifth Circuit Agrees That Defendants May Not ‘Pick Off’ Class Representatives With Full Settlement Offers

On Aug. 12, 2015, less than a week after the Seventh Circuit’s decision in Chapman v. First Index, Inc., the Fifth Circuit followed its previous rulings and agreed with decisions from the Third, Seventh, Ninth, Tenth and Eleventh Circuits. The court concluded that an unaccepted full settlement offer to a class representative does not moot the named plaintiff’s individual claims or the class action.

Unlike Chapman, the Fifth Circuit in Hooks did not discuss a potential affirmative defense based on the rejected offer. This issue is currently before the Supreme Court in Gomez v. Campbell-Ewald Company.

Barnes & Thornburg’s newest office in Dallas, Texas, is located in the Fifth Circuit.

For more information, contact the Barnes & Thornburg attorney with whom you normally work, or one of the following attorneys: Adey Adenrele at adey.adenrele@btlaw.com or 317-231-7365, Joseph Wendt at joseph.wendt@btlaw.com or 317-231-7748 or Christine Skoczylas at christine.skoczylas@btlaw.com or 317-214-5613.

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This Barnes & Thornburg LLP publication should not be construed as legal advice or legal opinion on any specific facts or circumstances. The contents are intended for general informational purposes only, and you are urged to consult your own lawyer on any specific legal questions you may have concerning your situation.

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