Does a class action settlement need to be approved by a court?

Often when a class action lawsuit is successful in North Carolina, the plaintiff and defendant reach a settlement agreement to resolve the dispute. This agreement is designed to provide relief to the plaintiff and class members while avoiding the time and expense of a trial. The settlement agreement must then be filed with the court and be approved by the court before it can be finalized. The judge handling the class action will review and evaluate the proposed settlement to make sure that it is fair and reasonable. The court will take into account any class members’ objections or comments, as well as the defendant’s and plaintiff’s arguments provided when the settlement agreement is presented. If the court approves the settlement, the judge may enter a final judgment. This will make the proposed settlement legally binding and enforceable. The court order will list the terms of the settlement, and the defendant will be obligated to comply with the terms. In some cases, the court may require a settlement fairness hearing to make sure that the settlement is in the class members’ best interest. At the fairness hearing, class members have an opportunity to present their objections and opinions to the court. The judge will then consider all the evidence presented to determine if the settlement should be approved or rejected. In summary, a class action settlement must be approved by a court in order for it to be legally binding and enforceable. The court will ensure that the settlement is fair and reasonable for all involved before approving it.

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Does a class action settlement need to be approved by a court?

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