As we previously reported, the Supreme Court’s decision in Spokeo v. Robins, has been nearly universally lauded by defense counsel as a new bulwark against class actions alleging technical violations of federal statutes. But Spokeo also poses a significant threat to defendants by defeating their ability to remove exactly the types of cases that defendants most want in federal court.
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On May 16, 2016, the United States Supreme Court issued a decision in Spokeo Inc. v. Thomas Robins, holding that the Ninth Circuit’s ruling applied an incomplete analysis when it failed to consider both aspects of the injury-in-fact requirement under Article III. The Court found that a consumer could not sue Spokeo, Inc., an alleged consumer reporting agency that operates a “people search engine,” for a mere statutory violation without alleging actual injury.
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As reported in the Hunton Employment & Labor Perspectives Blog, on March 19, 2013, the United States Supreme Court ruled that stipulations by a named plaintiff on behalf of a proposed class prior to class certification cannot serve as the basis for avoiding federal jurisdiction under the Class Action Fairness Act of 2005.
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