First Circuit Rejects Defendant’s Offer of Settlement as Mooting Plaintiff’s Claims
In many class action cases, the defendant will attempt to render the action moot by offering a settlement to the lead plaintiff. Last month, the First Circuit Court of Appeals rejected one such attempt to moot in Bais Yaakov of Spring Valle v. ACT, Inc. In this case, the plaintiffs alleged that the defendants sent unsolicited faxes informing the plaintiffs and the proposed class of testing deadlines and test locations in violation of the Telephone Consumer Protection Act (“TCPA”) and analogous New York state laws.
After the suit was filed, the defendant made an offer for judgment pursuant to Federal Rule of Civil Procedure 68. The defendant then moved to dismiss the lawsuit, claiming that the Rule 68 offer that it sent, which the plaintiffs did not accept and the defendant later withdrew, fully resolved the parties’ case or controversy, rendering the plaintiffs’ claims moot.