Ninth Circuit Rejects Class Action Settlement Approved by Magistrate

A federal appeals court has ruled a magistrate judge abused her discretion to approve a class action settlement by giving the green light to an agreement that required members to give up their rights to seek damages in exchange for injunctive relief that had no value. The U.S. Court of Appeals for the Ninth Circuit on Jan. 25 found U.S. Magistrate Judge Karen Crawford, of the Southern District of California, should not have approved a Fair Debt Collection Practices Act settlement with ARS National Services in the case Koby v. Helmuth.