Law Commons^™

Conflicting Ideologies Of Group Litigation: Who May Challenge Settlements In Class Actions And Derivative Suits?, Susanna Ripken

Susanna K. Ripken

The article discusses the rights of unnamed class members in class actions and shareholders in corporate derivative suits to appeal court orders approving the settlement of their claims. As representative actions, class actions and derivative suits by definition necessarily determine the rights and duties of absent parties. Unnamed class members and shareholders must rely on the named plaintiff representative to protect their interests, especially when the case is settled prior to a judgment on the merits. The federal courts are sharply divided over the question whether absent parties who are dissatisfied with the class action or derivative suit settlement may …