Unaccepted Settlement Offer Does Not Terminate Class Action, U.S. Supreme Court Rules

WASHINGTON, D.C. — A company cannot terminate a class action by making a settlement offer of full relief to an individual plaintiff, a majority of the U.S. Supreme Court has ruled.

The majority, led by Justice Ruth Bader Ginsburg, explained in a Jan. 20 opinion that under basic contract law, “an unaccepted settlement offer has no force” and “creates no lasting right or obligation.”

The underlying case involves a contract the U.S. Navy entered into with Campbell-Ewald Co. to develop a multimedia recruiting campaign that included the sending of text messages to young adults. The texts were sent only to …