As addressed in a separate post on this blog, the Supreme Court’s decision in Symczyk v. Genesis Healthcare Corp., 133 S.Ct. 1523 (2013) and cases since raised the issue of whether a defendant’s unaccepted offer of judgment for complete relief can moot class actions before a class is certified, which in turn raises the issue of whether such cases can be mooted by a full refund.  A recent decision from the Eastern District of California says “yes.”

On February 04, 2014, in the case of Luman v. Theismann, 2014 WL 443960 (E.D. Cal. Feb. 4, 2014), the Court granted a motion to dismiss a putative class action alleging false advertising and related claims against NAC Marketing Co. and its endorser, former Washington Redskins quarterback Joe Theismann, because the plaintiffs who had purchased NAC’s product — an allegedly ineffective prostate medication — had received full refunds.  U.S. District Judge Kimberly J. Mueller dismissed the entire action, ruling that the Court lacked subject matter jurisdiction since the plaintiffs’ alleged injuries had been redressed.
Continue Reading Strategy of Offering Refunds to Moot Class Actions Gains Traction