Abstract

http://ssrn.com/abstract=528146
 
 

Citations (10)



 
 

Footnotes (82)



 


 



The Role of Opt-Outs and Objectors in Class Action Litigation: Theoretical and Empirical Issues


Theodore Eisenberg


Cornell University, Law School (deceased)

Geoffrey P. Miller


New York University School of Law

March 23, 2004

NYU, Law and Economics Research Paper No. 04-004; Cornell Law School Research Paper No. 04-019

Abstract:     
This article analyzes a data set of reported decisions from 1992-2003 in which the number of opt-outs and/or objectors to class action settlements was quantified. The numbers of opt-outs and objections were uniformly low and in some cases nearly trivial. On average, less than 1% of class members opt-out and about 1% of class members object to class-wide settlements. Civil rights and employment discrimination class actions have relatively higher objection rates, but even these are less than 5% of the class. Securities, antitrust, and consumer class actions have the lowest rates of dissent. Dissent rises with the average recovery per class member and falls as a percentage of the class as the size of the class increases. Dissent is not correlated with the attorneys fee as a percent of the class recovery. The rate of objection to a settlement is negatively correlated with the chance that the settlement will be approved, but the rate of opt-outs has no correlation with settlement approval. Levels of dissent exhibit a noticeable decline over the period of the study. This study has a variety of implications for the law of class actions.

Number of Pages in PDF File: 47


Open PDF in Browser Download This Paper

Date posted: April 12, 2004  

Suggested Citation

Eisenberg, Theodore and Miller, Geoffrey P., The Role of Opt-Outs and Objectors in Class Action Litigation: Theoretical and Empirical Issues (March 23, 2004). NYU, Law and Economics Research Paper No. 04-004; Cornell Law School Research Paper No. 04-019. Available at SSRN: http://ssrn.com/abstract=528146 or http://dx.doi.org/10.2139/ssrn.528146

Contact Information

Theodore Eisenberg (Contact Author)
Cornell University, Law School (deceased) ( email )
Myron Taylor Hall
Cornell University
Ithaca, NY 14853-4901
United States
Geoffrey P. Miller
New York University School of Law ( email )
Center for the Study of Central Banks
40 Washington Square South
New York, NY 10012-1099
United States
212-998-6329 (Phone)
212-995-4590 (Fax)
Feedback to SSRN


Paper statistics
Abstract Views: 4,454
Downloads: 726
Download Rank: 24,252
Citations:  10
Footnotes:  82

© 2016 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollobot1 in 0.234 seconds