On October 28, 2022, the U.S. Court of Appeals for the Fourth Circuit in Alig v. Rocket Mortgage vacated and remanded for reconsideration a district court order certifying a class of mortgage borrowers, highlighting an important Article III standing issue in class action lawsuits. See Alig v. Rocket Mortgage, LLC, 52 F.4th 167 (4th Cir. 2022). The Alig decision relies on the United States Supreme Court’s decision in TransUnion LLC v. Ramirez and follows a grant of certiorari, vacatur, and remand from the U.S. Supreme Court. The decision provides further ammunition for the argument that all putative class members must have a demonstrable injury in order to recover damages in a class action. Indeed, the grant of certiorari by the Supreme Court in Alig is itself a signal that this defense is one that should not be discounted by defendants finding themselves the subject of class action litigation.
Continue Reading Fourth Circuit Vacates and Remands Class Certification Decision in Accordance with Supreme Court’s Directive to Consider Ramirez’s Effect on Issues of Standing in Mortgage Class Action