Ainsley McMahon

Ainsley McMahon is an associate in the firm's New York office, where she is member of the Litigation and Investigations practice group.

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In its recent decision in Clippinger v. State Farm, the Sixth Circuit addressed the certification of a class in a breach-of-contract dispute over insurance valuation claims, in which the defendant contended that individualized evidence would be needed to determine whether the alleged breach caused actual monetary injury to class members.  Similar class certification issues have been addressed by several other circuits, including by the Ninth Circuit just last month. In its decision, however, the Sixth Circuit went its own way: (1) the court found that an alleged breach of contract was alone sufficient to create Article III standing, and (2) the court split from five other circuits in affirming certification of the class.Continue Reading Valuation and Standing—The Sixth Circuit Creates a Class Action Split

The Third Circuit recently rejected the so-called “reasonable indication” opt-out standard, which refers to whether a class member can opt out of a class action by merely providing a “reasonable indication” of their intent to do so, regardless of whether this indication adheres to the letter of the procedures established by the district court. See Perrigo Institutional Investor Group v. Papa, No. 24-2861, 2025 WL 2315977 (3rd Cir. Aug. 12, 2025).

Appellants inadvertently failed to opt out of class membership in a securities-related class action. This failure came to light on the eve of settlement in parallel litigation, which was premised on the erroneous assumption that Appellants had properly opted out. On appeal, Appellants urged the Third Circuit to adopt the “reasonable indication” standard and conclude the separate litigation was sufficient evidence of their intention to opt out of the class. The Third Circuit declined to do so, reasoning that it was contrary to the text of Rule 23 and that it would complicate administrability of class membership opt-outs.Continue Reading Third Circuit Rejects “Reasonable Indication” Opt-Out Standard