A class action lawsuit was filed in the United States District Court with the Eastern District of North Carolina against Pyxus International, Inc. (“Pyxus”). The lawsuit focuses on those persons who acquired shares in Pyxus between June 7, 2018 and November 8, 2018, a period which coincides with steep drops in the company’s share price. Class action lawsuits are common shareholder litigation, but what exactly is a class action lawsuit? State or Federal Court? Class action lawsuits are available in state court – including North Carolina state court – as well as in federal court. Since its effective date, the Class Action Fairness Act of 2005 (the “Act”)…
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North Carolina Business Court Weights in on Attorneys’ Fees in Class Action Settlements
Recent decisions by the North Carolina Court of Appeals and North Carolina Business Court (NCBC) shed light on a previously unsettled question of law: when can a North Carolina trial court award attorney’s fees as part of a class-action settlement in the absence of additional statutory authority? Long-standing precedent is that a court can award attorneys’ fees to a prevailing party when statutorily authorized to do so.[1] This practice is known as the “American Rule.” The intended purpose of the American Rule is to encourage the conservation of judicial resources by promoting settlement and discouraging unnecessarily prolonged litigation.[2] Regarding…
