It is common for parties involved in a lawsuit, especially a large class action, to settle their legal claims outside of court, instead of pursuing the dispute all the way to a court ruling. But just because one party makes an offer, does not mean the other party is required to accept that offer. Each side will agree to or reject an offer to settle the dispute based on a number of factors, of which the amount of the settlement is just one.
In some cases involving statutory damages, such as allegations of violating the Telephone Consumer Protection Act (TCPA), if a defendant offers to pay the lead plaintiff all actual and statutory damages in full, the plaintiff’s claims are considered null and void, regardless of whether the plaintiff accepts the terms of the settlement. This allows defendants to avoid a large and costly class action lawsuit by paying off the claims of just one plaintiff. But that recently changed with a ruling by the Supreme Court. Continue reading