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Federal Rules of Civil Procedure (FRCP) QUESTION #5674
Question 1
A class action is proposed for settlement. Under Rule 23(e), what is required for the court to approve the settlement?
  • The majority of the class members must vote in favor.
  • The court must find that the settlement is 'fair, reasonable, and adequate' after a hearing.✔️
  • The defendant must admit liability as part of the settlement.
  • The settlement must provide at least 75% of the total damages claimed.
Correct Answer Explanation
Rule 23(e)(2) requires the court to find a proposed settlement 'fair, reasonable, and adequate' after a hearing.