Ending class actions by forced compromises

Advocates Nati Agmon & Shay Glick published an article that offers a unique unprecedented solution for neutralizing representative plaintiffs who thwart compromises in exhausted class actions that can be likely resolved in feasible compromises in favor of the group.

The proposed solution allows the defendant to submit a settlement agreement offer on his behalf and also for the group – despite the plaintiff’s position – and applying a statutory mechanism for examining settlement agreements (publication, examination by the Attorney General, etc.).

The legal model of this solution is based on the provisions of the law (including its rationale) is the same representative dilemma and conflict of interest between the representative plaintiff and the group he purports to represent, and which the settlement agreement should be in favor and for its benefit (analogies for this model can be found in the approval of creditor arrangements, settlement agreements in derivative lawsuits, and neutralizing shareholders’ personal negative interests).

Read the full article

Related News