[consumerpro]

If a class action suit settles - whether before trial, or afterward to avoid appeals - the court takes on an active role in making sure the class action settlement is fair to all class members. Usually the court will hold two fairness hearings. The first is a "preliminary approval" hearing, in which the court examines the settlement and makes sure that what the class is receiving is fair in comparison to what it might get if it won at trial, balanced against the expense and the risk of losing at trial.

If the court decides that the settlement is fair, it then sets a second hearing - called a "final fairness" hearing. The difference between this and the preliminary approval hearing is that the final fairness hearing takes place after notice has been sent to the class. The court looks at how many people stayed in the class, how many opted out, and how many people filed objections. This is also an opportunity for members of the class to attend a hearing and testify about their views (positive or negative) about the settlement. The class notice states the time and place of the final fairness hearing and states how a class member can indicate that he or she wishes to attend the final fairness hearing.