Does a change of circumstances or modification of a consent decree require notice of a class action settlement?

MultiRegion, United States of America

The following excerpt is from Benipayo v. Volkswagen Grp. of Am., Inc. (In re Volkswagen "Clean Diesel" Mktg., Sales Practices, & Prods. Liab. Litig.), 975 F.3d 770 (9th Cir. 2020):

Claimants also assert that any modification to the agreement required a substantial change of circumstances and a notice to the class. But the agreement's modification provision requires neither. Instead, the plain terms of the agreement show no notice to the class is necessary if the modification has court approval. Additionally, the cases suggesting that a change of circumstances is necessary to amend a class action settlement don't involve the situation herewhere both Parties agreed to the amendment using the agreement's modification procedures. See, e.g. , Flores v. Lynch , 828 F.3d 898, 90910 (9th Cir. 2016) (denying a Rule 60(b)(5) motion by one party to modify a consent decree in light of a change in circumstances). Absent an express term requiring notice or a change of circumstances to validate an amendment, we will not read one into the agreement.

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