The Seventh Circuit reviewed objections by two class members to the district court’s approval of a settlement in a case involving the use of biometric data. The Seventh Circuit did not find any substantive issues with the settlement’s absence of injunctive relief and the presence of monetary relief in the form of an equity stake in the defendant, but the appellate court identified procedural problems with the settlement process. The Seventh Circuit noted that the settlement provided greater monetary benefits for members of several subclasses based on state residency and noted that while this could be justified based on differences in state law, no representative of the disfavored classes endorsed the allocation of monetary benefits. The Seventh Circuit vacated approval of the settlement and remanded for further proceedings, noting that class-action settlements require structural assurances of fair and adequate representation. (MALDONADO and TAIBLESON, concurring)
Federal 7th Circuit Court
Civil Court
Class Action Settlement