May 29, 2020 Articles

The Top Two Drafting Considerations for a Class Action Settlement Agreement

The critical provisions you must pay attention to when negotiating and drafting a class action settlement agreement: the scope of the release and allocation of opt-out risk.

By Lara Flath and Boris Bershteyn

After years of hard-fought litigation and months of settlement negotiations, you finally reach an agreement on the monetary terms of a class action settlement in federal court. Your client immediately begins to celebrate that this entire mess is behind it. But the work is not done quite yet. In this article, which focuses on settlement agreements relating to class actions pending in federal court, we highlight two particular provisions defense counsel should focus on and considerations to keep in mind with respect to future exposure when drafting and negotiating the settlement agreement itself.

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