Supreme Court Rules Plaintiff’s Rejection of Settlement Offer Does Not Moot Class Claims
The United States Supreme Court has handed down a key ruling in Campbell-Edwald Co. v. Gomez, holding that a defendant’s offer of settlement to a lead plaintiff in a class action lawsuit does not render the remaining claims of the class members moot. In the lawsuit, the plaintiff brought a class action under the Telephone Consumer Protection Act, requesting damages for unwanted text messages that the defendant delivered to him and the other class members. Prior to seeking class certification, the defendant sent a settlement offer to the plaintiff under Federal Rule of Civil Procedure 68.
After a defendant makes an offer of settlement under FRCP 68, the plaintiff has 10 days to either reject the offer or provide acceptance in writing. If the plaintiff does not respond, the offer is considered rejected. If the plaintiff rejects the settlement, a series of mechanisms kick in that affect trial and the payment of legal fees.
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