Faced with a putative class action, a defendant in certain circumstances may seek to settle the named plaintiffs’ individual claims—in an attempt to moot them—rather than risk class certification and face even greater exposure. But the Second Circuit’s recent decision in Radha Geismann, M.D., P.C. v. ZocDoc, No. 17-2692, 2018 WL 6175291 (2d Cir. Nov. 27, 2018) clarifies and limits the extent to which unaccepted settlement offers might moot named plaintiffs’ claims, and makes it considerably more difficult for class action defendants to successfully deploy this strategy.
‘Genesis Healthcare’
In Genesis Healthcare v. Symczyk, 569 U.S. 66 (2013), the defendant sought to prevent certification of a collective action under the Fair Labor Standards Act by making a settlement offer to the named plaintiff. After the offer lapsed, the defendant moved to dismiss, arguing that because it had offered complete relief for the plaintiff’s individual claim, the plaintiff—despite rejecting the offer—no longer had a personal stake in the lawsuit and so the entire action was moot.
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