1、 CRS Legal Sidebar Prepared for Members and Committees of Congress Legal SidebarLegal Sidebari i UPDATE: Is Cy Pres A-OK? Supreme Court to Consider When Class Action Settlements Can Pay a Charity Instead of Class Members Updated March 20, 2019 UPDATE: The Supreme Court issued its opinion in Frank v.
2、 Gaos on March 20, 2019. Significantly, the Courts majority opinion did not address any of the substantive issues discussed in this Sidebar. Instead, the Court remanded the case and directed the lower courts to decide an unrelated issue: namely, whether the federal courts may validly exercise jurisd
3、iction over the case. Thus, guidance from the Supreme Court regarding whether (and under what circumstances) cy pres settlements are legally permissible in class action cases will have to await a future case. The original post from May 10, 2018, is below. The Supreme Court will soon consider a quest
4、ion that has captured the attention of some Members of Congress as well as other commentators: when, if ever, do the Federal Rules of Civil Procedure permit a defendant to settle a class action lawsuit by paying money to a charity, rather than to the injured class members? The Courts answer to that