Nachshin, et al. v. AOL, LLC, No. 10-55129 (9th Cir. 2011)Annotate this Case
This case involved a proposed class action settlement between AOL and plaintiffs where the parties agreed that AOL would make a series of charitable donations. At issue was whether the district court abused its discretion in approving the proposed class action settlement, including a proposed cy pres settlement distribution. The court held that the cy pres distributions here did not comport with the court's cy pres standards. While the donations were made on behalf of a nationwide plaintiff class, they were distributed to geographically isolated and substantively unrelated charities. The court concluded that the district court judge did not have to recuse herself pursuant to 28 U.S.C. 455(a) or (b)(4), 5(iii). The court declined to address the issue of whether the class notice was sufficient. Accordingly, the court reversed in part, affirmed in part, and remanded.