In the Matter of Colt Industries Shareholder Litigation. Karen Woodrow v. Colt Industries Inc, James S. Merritt Company

Summary

The New York Court of Appeals held that when a class action seeks predominantly equitable relief, due process does not require an opt‑out opportunity for class members, but the trial court erred in approving a settlement that extinguished the respondent's right to pursue damages claims. Accordingly, the court affirmed the Appellate Division order in modified form, vacating the portion that bound the respondent to the settlement for damages.