An antitrust class action trend has emerged with cases being brought by U.S. Attorneys General. Regulatory enforcement proceedings by state Attorneys General could put a dent in antitrust class action recoveries. These out-of-court settlements differ from class action settlements in that they are not subject to preliminary or final court approval, fairness hearings or objection proceedings, and they do not involve a process for submitting proof-of-claim forms.
In some AG cases, claimants were required to sign a release of their claims against the defendant in order to receive a certain amount from the recovery fund. Therefore, claimants forfeited their right to recover against the defendant in several pending class actions, as well as future cases, and are precluded from bringing their own direct lawsuits against the firm.
Download FRT’s Securities Litigation & Class Action Trends – 2016 Year in Review to learn more about this trend and others affecting securities litigation.