The U.S. Court of Appeals for the Third Circuit recently denied class certification in a consumer fraud case. In Grandalski v. Quest Diagnostics, No. 13-4329 ((3d. Cir. Sept. 11, 2014), the court affirmed a trial court order denying certification of a nationwide class of consumers allegedly overcharged by the defendant. The opinion is instructional on current class action law and underscores the rigor with which trial courts are expected to analyze motions for class certification.

The plaintiffs in Grandalski sued Quest Diagnostics Inc., the nation’s largest diagnostic and clinical medical testing providers, claiming that Quest had overcharged individuals who used its testing services. Quest performs testing services and then bills the patient’s insurer. The insurer then reviews the claim and reports back to Quest any amounts that the insured is responsible for paying. The plaintiffs alleged that Quest overcharged the insured patients following receipt of the insurer’s response. The principal claims against Quest were asserted under the state consumer protection statutes of all 50 states. The plaintiffs also alleged unjust enrichment claims. In terms of class size, the plaintiffs sought certification of a nationwide class or, alternatively, of two subclasses grouped according to alleged similarities among state consumer protection laws. The U.S. District Court for the District of New Jersey denied certification. The Third Circuit affirmed.

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