Defendants often consider whether weak class allegations can be stricken at the pleading stage, leaving just a low-exposure individual claim to defend.  That tactic may have a great chance of success—especially when a complaint asserts state-law claims on behalf of a nationwide class or challenges multiple misrepresentations—in light of a recent Fifth Circuit decision approving that strategy.

In Elson v. Black, __ F.4th __, 2023 WL 111317 (5th Cir. Jan. 5, 2023), plaintiffs brought a putative class action alleging that the defendants made various misrepresentations about a massager.  Plaintiffs sought a nationwide class and, in the alternative, seven subclasses representing the seven states where they reside.  The district court granted the defendants’ motion to strike the class allegation, a decision the Fifth Circuit upheld on several grounds.

First, the Fifth Circuit held that plaintiffs failed to show that the differences in state law would not predominate over individual issues.  The plaintiffs attempted to analyze the differences in the reliance requirements of the relevant state laws, but the Fifth Circuit found that those differences “swamp[ed] any common issues and defeat[ed] predominance.”

Second, the Fifth Circuit determined that the plaintiffs’ allegations introduced “numerous factual differences that in no way comprise a coherent class.”  Notably, the plaintiffs relied on different misrepresentations about different aspects about the product’s promised benefits—some were disgruntled because they expected the device to reduce cellulite, some were unhappy because they expected it to reduce their pain, and others were dissatisfied because they expected it to help them lose weight.  The court reasoned that “[d]iscerning the truth or falsity of each representation would require a group-by-group analysis” and that “even within these groups, the possibility of class analysis disintegrates because the members did not rely on the same alleged misrepresentations.” 

Finally, the Fifth Circuit rejected plaintiffs’ proposal of state-specific subclasses, nothing that “‘subclass’ is not a magic word that remedies defects of prominence” and that plaintiffs failed to meet their burden to show “how certain proposed subclasses would alleviate existing obstacles to certification.”

The Fifth Circuit’s decision confirms that defendants should carefully evaluate whether to seek to strike class allegations where the plaintiffs’ claims involve substantial variations in state laws and factual differences are apparent from the face of the complaint.  Defendants should also be mindful that courts in certain circuits may be less receptive to striking class allegations. 

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Photo of Ellen Choi Ellen Choi

Ellen Choi is a member of the firm’s Litigation and Investigations Practice Group. She represents clients in complex commercial disputes involving a range of issues such as business torts, consumer protection, and insurance recovery. Ellen also has experience in a range of internal…

Ellen Choi is a member of the firm’s Litigation and Investigations Practice Group. She represents clients in complex commercial disputes involving a range of issues such as business torts, consumer protection, and insurance recovery. Ellen also has experience in a range of internal investigations, including workplace culture investigations. Ellen maintains an active pro bono practice.

Ellen is fluent in Korean and has experience advising Korean companies in litigation and investigation matters.

Prior to joining Covington, Ellen clerked for Judge Philip S. Gutierrez, U.S. District Court, Central District of California. Ellen was a management consultant in the pharmaceutical and biotech space before practicing law.

Photo of Andrew Soukup Andrew Soukup

Andrew Soukup has a wide-ranging complex litigation practice representing highly regulated businesses in class actions and other high-stakes disputes. He has built a successful record of defending clients from consumer protection claims asserted in class-action lawsuits and other multistate proceedings, many of which…

Andrew Soukup has a wide-ranging complex litigation practice representing highly regulated businesses in class actions and other high-stakes disputes. He has built a successful record of defending clients from consumer protection claims asserted in class-action lawsuits and other multistate proceedings, many of which were defeated through dispositive pre-trial motions.
Andrew is co-chair of the firm’s Class Action Litigation practice group.

Andrew has helped his clients achieve successful outcomes at all stages of litigation, including through trial and appeal. He has helped his clients prevail in litigation against putative class representatives, government agencies, and commercial entities. Representative victories include:

  • Delivered wins in multiple nationwide class actions on behalf of large financial companies related to fees, disclosures, and other banking practices, including the successful defense of numerous lenders accused of violating the Paycheck Protection Program’s implementing laws, which contributed to Covington’s recent recognition as a “Class Action Group Of The Year.”
  • Successfully defending several of the nation’s leading financial institutions in a wide variety of litigation and arbitration proceedings involving alleged violations of RICO, FCRA, TILA, TCPA, FCBA, ECOA, EFTA, FACTA, and state consumer protection and unfair and deceptive acts or practices statutes, as well as claims involving breach of contract, fraud, unjust enrichment, and other torts.
  • Successfully defended several of the nation’s leading companies and brands from claims that they deceptively marketed their products, including claims brought under state consumer protection and unfair deceptive acts or practices statutes.
  • Obtained favorable outcomes for numerous clients in commercial disputes raising contract, fraud, and other business tort claims.

Because many of Andrew’s clients are subject to extensive federal regulation and oversight, Andrew has significant experience successfully invoking federal preemption to defeat litigation.

Andrew also advises clients on their arbitration agreements. He has successfully helped numerous clients avoid multi-district class-action litigation by successfully enforcing the institutions’ arbitration agreements.

Clients praise Andrew for his personal attention to their matters, his responsiveness, and his creative strategies. Based on his “big wins in his class action practice,” Law360 named Mr. Soukup a “Class Action Rising Star.

Prior to practicing law, Andrew worked as a journalist.