Tobias
Tobias v. NVIDIA Corporation
Opinion
Trial Court Opinion
UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF CALIFORNIA 6 CRISTINA TOBIAS, et al., Case No. 20-cv-06081-JST
Plaintiffs,
ORDER DENYING WITHOUT
v. PREJUDICE MOTION FOR
PRELIMINARY APPROVAL OF
NVIDIA CORPORATION, et al., CLASS ACTION SETTLEMENT Defendants. Re: ECF No. 127
12 Before the Court is Plaintiffs’ unopposed motion for preliminary approval of class action settlement. ECF No. 127. The Court will deny the motion without prejudice for the reasons discussed below. First, it is not clear that the settlement is not reversionary. The Ninth Circuit has “not disallowed reversionary clauses outright,” but it “generally disfavor[s] them because they create perverse incentives.” Roes, 1–2 v. SFBSC Mgmt., LLC, 944 F.3d 1035, 1058 (9th Cir. 2019) (citing In re Volkswagen “Clean Diesel” Mktg., Sales Pracs., & Prods. Liab. Litig., 895 F.3d 597, 611–12 (9th Cir. 2018)). This Court “frequently rejects class settlements containing reversion clauses.” Alcazar v. Fashion Nova,…