October Term 2018 · Docket 17-961
Can courts reject class settlements that pay only third parties?
the sides that brought the case seek to invalidate settlements where class members receive no direct cash. the opposing sides argue such deals remain valid if they benefit the class indirectly.
Verified source milestones
- — An official oral-argument transcript was verified.
- — An official oral-argument transcript was verified.
The arguments, in order
This case may have been argued more than once. Each entry below uses that session's official transcript. Later arguments do not erase earlier ones.
Argument 1 ·
What happened at the argument
Mr. Frank argued courts must align counsel interests with class members.
Mr. Pincus argued no rule bans settlements paying only third parties.
Mr. Lamken argued policy questions belong to Congress or the Judicial Conference.
Read the official transcript for this argument · Official argument details
Sources used for this argument breakdown
- Official Supreme Court Transcript — file page 10, lines 23-26 — Transcript, file page 10, lines 23-26
- Official Supreme Court Transcript — file page 11, lines 13-21 — Transcript, file page 11, lines 13-21
- Official Supreme Court Transcript — file page 26, lines 13-6 — Transcript, file page 26, lines 13-6
- Official Supreme Court Transcript — file page 38, lines 20-6 — Transcript, file page 38, lines 20-6
- Official Supreme Court Transcript — file page 5, lines 16-34 — Transcript, file page 5, lines 16-34
- Official Supreme Court Transcript — file page 5, lines 35-8 — Transcript, file page 5, lines 35-8
- Official Supreme Court Transcript — file page 5, lines 8-15 — Transcript, file page 5, lines 8-15
- Official Supreme Court Transcript — file page 54, lines 8-16 — Transcript, file page 54, lines 8-16
- Official Supreme Court Transcript — file page 6, lines 15-16 — Transcript, file page 6, lines 15-16
- Official Supreme Court Transcript — file page 6, lines 25-10 — Transcript, file page 6, lines 25-10
- Official Supreme Court Transcript — file page 68, lines 30-30 — Transcript, file page 68, lines 30-30
- Official Supreme Court Transcript — file page 69, lines 31-32 — Transcript, file page 69, lines 31-32
- Official Supreme Court Transcript — file page 7, lines 18-24 — Transcript, file page 7, lines 18-24
- Official Supreme Court Transcript — file page 7, lines 31-32 — Transcript, file page 7, lines 31-32
- Official Supreme Court Transcript — file page 70, lines 26-32 — Transcript, file page 70, lines 26-32
- Official Supreme Court Transcript — file page 72, lines 10-21 — Transcript, file page 72, lines 10-21
- Official Supreme Court Transcript — file page 74, lines 23-24 — Transcript, file page 74, lines 23-24
- Official Supreme Court Transcript — file page 8, lines 11-13 — Transcript, file page 8, lines 11-13
- Official Supreme Court Transcript — file page 8, lines 18-25 — Transcript, file page 8, lines 18-25
- Official Supreme Court Transcript — file page 9, lines 14-16 — Transcript, file page 9, lines 14-16
- Official Supreme Court Transcript — file page 9, lines 21-26 — Transcript, file page 9, lines 21-26
- Official Supreme Court Transcript — file page 9, lines 9-11 — Transcript, file page 9, lines 9-11
A citizen's guide to the whole case
What this case is about
This case tests the limits of federal class action settlements. the sides that brought the case argue courts must reject deals that pay only third parties. the opposing sides argue courts may approve such deals if they serve the class's interests.
Official sources for this section
- Official Supreme Court Transcript — file page 26, lines 13-6 — Transcript, file page 26, lines 13-6
- Official Supreme Court Transcript — file page 38, lines 20-6 — Transcript, file page 38, lines 20-6
- Official Supreme Court Transcript — file page 5, lines 16-34 — Transcript, file page 5, lines 16-34
- Official Supreme Court Transcript — file page 54, lines 8-16 — Transcript, file page 54, lines 8-16
- Official Supreme Court Transcript — file page 68, lines 30-30 — Transcript, file page 68, lines 30-30
- Official Supreme Court Transcript — file page 72, lines 10-21 — Transcript, file page 72, lines 10-21
How the case got here
The Supreme Court heard oral argument in this case on October 31, 2018.
Official sources for this section
- Official Supreme Court Transcript — file page 5, lines 8-15 — Transcript, file page 5, lines 8-15
- Official Supreme Court Transcript — file page 74, lines 23-24 — Transcript, file page 74, lines 23-24
What each side wants
the sides that brought the case want the Court to reject settlements that pay only third parties.
the opposing sides want the Court to allow settlements that benefit the class indirectly.
Official sources for this section
- Official Supreme Court Transcript — file page 26, lines 13-6 — Transcript, file page 26, lines 13-6
- Official Supreme Court Transcript — file page 38, lines 20-6 — Transcript, file page 38, lines 20-6
- Official Supreme Court Transcript — file page 5, lines 16-34 — Transcript, file page 5, lines 16-34
- Official Supreme Court Transcript — file page 54, lines 8-16 — Transcript, file page 54, lines 8-16
- Official Supreme Court Transcript — file page 68, lines 30-30 — Transcript, file page 68, lines 30-30
- Official Supreme Court Transcript — file page 72, lines 10-21 — Transcript, file page 72, lines 10-21
What each side says
the sides that brought the case argue Rule 23 requires direct benefits for absent class members.
the opposing sides argue no rule prohibits paying third parties if the class benefits.
Official sources for this section
- Official Supreme Court Transcript — file page 26, lines 13-6 — Transcript, file page 26, lines 13-6
- Official Supreme Court Transcript — file page 38, lines 20-6 — Transcript, file page 38, lines 20-6
- Official Supreme Court Transcript — file page 5, lines 16-34 — Transcript, file page 5, lines 16-34
- Official Supreme Court Transcript — file page 54, lines 8-16 — Transcript, file page 54, lines 8-16
- Official Supreme Court Transcript — file page 68, lines 30-30 — Transcript, file page 68, lines 30-30
- Official Supreme Court Transcript — file page 72, lines 10-21 — Transcript, file page 72, lines 10-21
What the justices asked
Chief Justice Roberts asked how parties divide unclaimed settlement funds.
Justice Sotomayor asked if the sides that brought the case dispute the cost-benefit finding of fact.
Official sources for this section
- Official Supreme Court Transcript — file page 10, lines 23-26 — Transcript, file page 10, lines 23-26
- Official Supreme Court Transcript — file page 11, lines 13-21 — Transcript, file page 11, lines 13-21
- Official Supreme Court Transcript — file page 5, lines 35-8 — Transcript, file page 5, lines 35-8
- Official Supreme Court Transcript — file page 6, lines 15-16 — Transcript, file page 6, lines 15-16
- Official Supreme Court Transcript — file page 6, lines 25-10 — Transcript, file page 6, lines 25-10
- Official Supreme Court Transcript — file page 69, lines 31-32 — Transcript, file page 69, lines 31-32
- Official Supreme Court Transcript — file page 7, lines 18-24 — Transcript, file page 7, lines 18-24
- Official Supreme Court Transcript — file page 7, lines 31-32 — Transcript, file page 7, lines 31-32
- Official Supreme Court Transcript — file page 70, lines 26-32 — Transcript, file page 70, lines 26-32
- Official Supreme Court Transcript — file page 74, lines 23-24 — Transcript, file page 74, lines 23-24
- Official Supreme Court Transcript — file page 8, lines 11-13 — Transcript, file page 8, lines 11-13
- Official Supreme Court Transcript — file page 8, lines 18-25 — Transcript, file page 8, lines 18-25
- Official Supreme Court Transcript — file page 9, lines 14-16 — Transcript, file page 9, lines 14-16
- Official Supreme Court Transcript — file page 9, lines 21-26 — Transcript, file page 9, lines 21-26
- Official Supreme Court Transcript — file page 9, lines 9-11 — Transcript, file page 9, lines 9-11
Why it matters
This dispute defines the minimum benefit required for class settlements. It shapes how courts evaluate deals that pay third parties. It affects the financial outcomes for millions of class members.
Official sources for this section
- Official Supreme Court Transcript — file page 26, lines 13-6 — Transcript, file page 26, lines 13-6
- Official Supreme Court Transcript — file page 38, lines 20-6 — Transcript, file page 38, lines 20-6
- Official Supreme Court Transcript — file page 5, lines 16-34 — Transcript, file page 5, lines 16-34
- Official Supreme Court Transcript — file page 54, lines 8-16 — Transcript, file page 54, lines 8-16
- Official Supreme Court Transcript — file page 68, lines 30-30 — Transcript, file page 68, lines 30-30
- Official Supreme Court Transcript — file page 72, lines 10-21 — Transcript, file page 72, lines 10-21
What happens next
This article currently covers the argument record. Use the official docket link for later case activity.
Official sources for this section
- Official Supreme Court Transcript — file page 10, lines 23-26 — Transcript, file page 10, lines 23-26
- Official Supreme Court Transcript — file page 11, lines 13-21 — Transcript, file page 11, lines 13-21
- Official Supreme Court Transcript — file page 5, lines 35-8 — Transcript, file page 5, lines 35-8
- Official Supreme Court Transcript — file page 5, lines 8-15 — Transcript, file page 5, lines 8-15
- Official Supreme Court Transcript — file page 6, lines 15-16 — Transcript, file page 6, lines 15-16
- Official Supreme Court Transcript — file page 6, lines 25-10 — Transcript, file page 6, lines 25-10
- Official Supreme Court Transcript — file page 69, lines 31-32 — Transcript, file page 69, lines 31-32
- Official Supreme Court Transcript — file page 7, lines 18-24 — Transcript, file page 7, lines 18-24
- Official Supreme Court Transcript — file page 7, lines 31-32 — Transcript, file page 7, lines 31-32
- Official Supreme Court Transcript — file page 70, lines 26-32 — Transcript, file page 70, lines 26-32
- Official Supreme Court Transcript — file page 74, lines 23-24 — Transcript, file page 74, lines 23-24
- Official Supreme Court Transcript — file page 8, lines 11-13 — Transcript, file page 8, lines 11-13
- Official Supreme Court Transcript — file page 8, lines 18-25 — Transcript, file page 8, lines 18-25
- Official Supreme Court Transcript — file page 9, lines 14-16 — Transcript, file page 9, lines 14-16
- Official Supreme Court Transcript — file page 9, lines 21-26 — Transcript, file page 9, lines 21-26
- Official Supreme Court Transcript — file page 9, lines 9-11 — Transcript, file page 9, lines 9-11
Official Court provenance
Official docket and case history · Official Supreme Court oral-argument detail page
Title and summary sources
- Official Supreme Court Transcript — file page 26, lines 13-6 — Transcript, file page 26, lines 13-6
- Official Supreme Court Transcript — file page 38, lines 20-6 — Transcript, file page 38, lines 20-6
- Official Supreme Court Transcript — file page 5, lines 16-34 — Transcript, file page 5, lines 16-34
- Official Supreme Court Transcript — file page 54, lines 8-16 — Transcript, file page 54, lines 8-16
- Official Supreme Court Transcript — file page 68, lines 30-30 — Transcript, file page 68, lines 30-30
- Official Supreme Court Transcript — file page 72, lines 10-21 — Transcript, file page 72, lines 10-21
- Official Supreme Court Transcript — file page 26, lines 13-6 — Transcript, file page 26, lines 13-6
- Official Supreme Court Transcript — file page 38, lines 20-6 — Transcript, file page 38, lines 20-6
- Official Supreme Court Transcript — file page 5, lines 16-34 — Transcript, file page 5, lines 16-34
- Official Supreme Court Transcript — file page 54, lines 8-16 — Transcript, file page 54, lines 8-16
- Official Supreme Court Transcript — file page 68, lines 30-30 — Transcript, file page 68, lines 30-30
- Official Supreme Court Transcript — file page 72, lines 10-21 — Transcript, file page 72, lines 10-21
Revision history
- Revision 1 · Official Transcript ·
Correction: Rewritten to the concise citizen-facing editorial standard.
- Revision 2 · Official Transcript ·
Correction: Migrated to the dated official Court activity contract without model use.