Third Circuit Discusses Class Certification

Update April 2009:  The plaintiffs have proposed settlements with all defendants.  Interestingly, one defendant settled for zero dollars with a pledge to help the plaintiff secure settlements against the other defendants.

In In re: Hydrogen Peroxide Antitrust Litigation, the Third Circuit remanded a decision certifying the class, instructing the district court to conduct a more thorough inquiry.  The court held that although the district court has discretion to decide whether to certify a class, it erred in three ways:

1) in holding that a plaintiff need only make a threshold showing the group claims predominate;

2) in holding that the importance of private antitrust enforcement suggested that when in doubt a court should favor class certification; and

3) in failing to assess the credibility of the expert testimony on class certification issues.

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