At least two petitions for a writ of certiorari are pending before the U.S. Supreme Court over incentive awards, which compensate class representatives for their added time and work.
March 24, 2023 at 04:00 PM
7 minute read
What You Need to Know
- This month, the U.S. Court of Appeals for the Second Circuit found that incentive awards were ‘at best dubious’ under U.S. Supreme Court precedent dating back to the 1880s.
- Petitions to review decisions by the Eleventh and Second Circuits are pending before the U.S. Supreme Court.
- There is growing cynicism about incentive awards, particularly among federal judges who review class action settlements.
When the U.S. Court of Appeals for the Eleventh Circuit invalidated incentive awards three years ago, the class action bar was shocked and called the decision an “outlier.”
The shock has worn off. And it’s no longer an outlier.
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