PRIA, Government Policy, Made Personal

Summary

Defines two key people: an appropriate federal official is either the U.S. Attorney General or the main federal regulator who supervises the defendant when the case involves a bank or similar institution. An appropriate state official is the person in a State who mainly regulates, supervises, or licenses the defendant, or the State attorney general if there is no such regulator. When a proposed class-action settlement is filed in court, each defendant who is part of that settlement must, within 10 days, send notice to the appropriate federal official and to the appropriate official in every State where class members live. The notice must include a copy or link to the complaint and related filings, any scheduled court hearing, the notice that will go to class members about opting out (or a statement that no opt-out right exists), the proposed or final settlement and any lawyer agreements, any final judgment or dismissal, names or a reasonable estimate of class members by State and their share of the settlement, and any written court opinions about those items. If the defendant is a bank or similar depository institution, serving the appropriate federal regulator (and for State banks also the State bank supervisor) satisfies these rules. A court cannot give final approval sooner than 90 days after those officials are served. If the required notice was not given, a class member may refuse to be bound by the settlement, except when notice was sent to the federal official and either the State attorney general or the regulator. These rules do not give new powers or duties to officials.

Title 28, §1715

Judiciary and Judicial Procedure, Source: USLM XML via OLRC

(a)Definitions.—

(1)Appropriate federal official.—

In this section, the term “appropriate Federal official” means—

(A)the Attorney General of the United States; or

(B)in any case in which the defendant is a Federal depository institution, a State depository institution, a depository institution holding company, a foreign bank, or a nondepository institution subsidiary of the foregoing (as such terms are defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813)), the person who has the primary Federal regulatory or supervisory responsibility with respect to the defendant, if some or all of the matters alleged in the class action are subject to regulation or supervision by that person.

(2)Appropriate state official.—

In this section, the term “appropriate State official” means the person in the State who has the primary regulatory or supervisory responsibility with respect to the defendant, or who licenses or otherwise authorizes the defendant to conduct business in the State, if some or all of the matters alleged in the class action are subject to regulation by that person. If there is no primary regulator, supervisor, or licensing authority, or the matters alleged in the class action are not subject to regulation or supervision by that person, then the appropriate State official shall be the State attorney general.

(b)In General.—

Not later than 10 days after a proposed settlement of a class action is filed in court, each defendant that is participating in the proposed settlement shall serve upon the appropriate State official of each State in which a class member resides and the appropriate Federal official, a notice of the proposed settlement consisting of— (1)

(2)notice of any scheduled judicial hearing in the class action;

(3)any proposed or final notification to class members of—

(A)(i)the members’ rights to request exclusion from the class action; or

(ii)if no right to request exclusion exists, a statement that no such right exists; and

(B)a proposed settlement of a class action;

(4)any proposed or final class action settlement;

(5)any settlement or other agreement contemporaneously made between class counsel and counsel for the defendants;

(6)any final judgment or notice of dismissal;

(7)(A)if feasible, the names of class members who reside in each State and the estimated proportionate share of the claims of such members to the entire settlement to that State’s appropriate State official; or

(B)if the provision of information under subparagraph (A) is not feasible, a reasonable estimate of the number of class members residing in each State and the estimated proportionate share of the claims of such members to the entire settlement; and

(8)any written judicial opinion relating to the materials described under subparagraphs (3) through (6).

(c)Depository Institutions Notification.—

(1)Federal and other depository institutions.—

In any case in which the defendant is a Federal depository institution, a depository institution holding company, a foreign bank, or a non-depository institution subsidiary of the foregoing, the notice requirements of this section are satisfied by serving the notice required under subsection (b) upon the person who has the primary Federal regulatory or supervisory responsibility with respect to the defendant, if some or all of the matters alleged in the class action are subject to regulation or supervision by that person.

(2)State depository institutions.—

In any case in which the defendant is a State depository institution (as that term is defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813)), the notice requirements of this section are satisfied by serving the notice required under subsection (b) upon the State bank supervisor (as that term is defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813)) of the State in which the defendant is incorporated or chartered, if some or all of the matters alleged in the class action are subject to regulation or supervision by that person, and upon the appropriate Federal official.

(d)Final Approval.—

An order giving final approval of a proposed settlement may not be issued earlier than 90 days after the later of the dates on which the appropriate Federal official and the appropriate State official are served with the notice required under subsection (b).

(e)Noncompliance if Notice Not Provided.—

(1)In general.—

A class member may refuse to comply with and may choose not to be bound by a settlement agreement or consent decree in a class action if the class member demonstrates that the notice required under subsection (b) has not been provided.

(2)Limitation.—

A class member may not refuse to comply with or to be bound by a settlement agreement or consent decree under paragraph (1) if the notice required under subsection (b) was directed to the appropriate Federal official and to either the State attorney general or the person that has primary regulatory, supervisory, or licensing authority over the defendant.

(3)Application of rights.—

The rights created by this subsection shall apply only to class members or any person acting on a class member’s behalf, and shall not be construed to limit any other rights affecting a class member’s participation in the settlement.

(f)Rule of Construction.—

Nothing in this section shall be construed to expand the authority of, or impose any obligations, duties, or responsibilities upon, Federal or State officials.

Statutory Notes and Related Subsidiaries

Effective Date

Section applicable to any civil action commenced on or after Feb. 18, 2005, see section 9 of Pub. L. 109–2, set out as an

Effective Date

of 2005 Amendment note under section 1332 of this title.

§1715 Notifications to Appropriate Federal and State Officials

Summary

Title 28, §1715

Notes & Related Subsidiaries

Statutory Notes and Related Subsidiaries

Effective Date

Effective Date

Citations & Metadata