SIIA Files Amicus Brief Regarding Class Certification Standards in Consumer Fraud Cases

The Software & Information Industry Association (SIIA) recently joined in filing an amicus brief that addresses critical issues in class-action litigation, particularly the Ninth Circuit's adoption of a "common-course-of-conduct" test for consumer-fraud cases. This test, which is typically used in securities-fraud cases, has expanded the circumstances under which consumer-fraud class actions can be certified. The brief argues that this approach undermines Rule 23's predominance requirement, which serves as a vital safeguard against abusive class actions. The amicus brief contends that by focusing solely on the defendant's conduct, the Ninth Circuit overlooks the individual questions of materiality and reliance that are often central to consumer-fraud claims.

The brief emphasizes that when applying the predominance requirement with rigor, consumer-fraud claims rarely satisfy the criteria for class certification due to the individualized nature of key issues like materiality and reliance. The brief also highlights that the Ninth Circuit's misapplication of securities-fraud precedent results in an over-simplified analysis of class certification, making it too easy for consumer-fraud classes to be certified. SIIA's amicus participation aims to clarify these issues and ensure that class actions are not improperly certified, preserving the integrity of the legal framework for consumer protection.