Frozen in Time: Evaluating Class Action Settlements in the Face of Changes in Law

Abstract

What is the impact on judicial review of class action settlements when there is a change in the law after the parties sign a settlement, and should judges consider such a change when adjudicating the reasonableness of the settlement? In this BNA Insight, attorneys Laurence J. Hutt and Amy B. Levin review pertinent case law, and argue that courts should abide by the law in effect at the time of settlement. Reviewing courts ‘‘should honor parties’ bargained-for settlement terms rather than giving effect to the changed law, which would potentially ‘undo’ the settlement terms,’’ the authors say.