Kurtz v. Kimberly-Clark Corporation
(2nd Circuit)
Protecting the availability of claims-based settlements
On September 13, 2024, the NAM filed an amicus brief urging the 2nd Circuit to affirm a trial court’s approval of a claims made class action settlement related to Kimberly-Clark's flushable wipes products. In this case, Plaintiffs allege that Kimberly-Clark marketed its wipes as safe for sewage and septic systems, but the wipes did not break down fast enough after they were flushed. After eight years of litigation, the parties agreed on a claims-made settlement—where class members were required to submit a claim to receive a portion of a settlement—and plaintiffs' counsel received attorneys’ fees higher than the amount claimed by the class. Ted Frank, a frequent class action objector, moved to block the settlement, arguing that Defendants paid an outsized attorneys’ fee compared to the actual class benefit. After the Eastern District of New York approved the settlement, the objector appealed to the 2nd Circuit.
We argue in our amicus brief that “claims made” settlements are a tool trial courts can use to resolve low value class actions, and that the trial court did not abuse its discretion in approving the settlement in this case. All manufacturers have an interest in preserving the ability to resolve class actions and obtain finality through settlements.
Related Documents: NAM brief (September 13, 2024)
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