First American Title defeats class certification in ERISA stock drop case
Clients First American Corporation
On behalf of First American Corporation, Jones Day established a new legal rule in defeating a motion to certify a class of approximately 37,000 current and former employees who invested in the company's stock through a 401(k) plan. The three remaining Plaintiffs then filed an emergency petition for review. On October 20, 2009, the Ninth Circuit rejected Plaintiffs' Rule 23(f) petition. In its ruling, the district court adopted Jones Day's argument that in light of existing Ninth Circuit precedent and a recent Supreme Court decision, class actions against "defined contribution plans," i.e., 401(k) plans, should no longer be certified under Rule 23(b)(1).
In re First American Corp. ERISA Litigation, 258 F.R.D. 610 (C.D. Cal. 2009)