Guidance Issued on Filing Notices of Proposed Class Action Settlements
May 25, 2007
Circular No. 11862

The Board of Governors of the Federal Reserve System has issued SR 07-7/CA 07-2 to provide guidance to banking organizations under its supervision of requirements for filing notice of proposed settlements of class action litigation.

The Class Action Fairness Act of 2005, Pub.L. No. 109-2, 119 Stat. 4 (2005) (codified at 28 U.S.C. ยง 1715), requires financial institutions that are defendants in class action litigation to file with their primary Federal banking regulator (and, in the case of state-chartered institutions in the United States, with their state banking supervisor) a notice of any proposed settlement of such litigation if any of the matters alleged in the action are subject to regulation or supervision by such agencies.

The notice requirements apply to federal and state depository institutions, depository institution holding companies, foreign banks and nondepository institution subsidiaries of any of the foregoing entities.

See the SR/CA letter for full details.

SR 07-7/CA 07-2 letter offsite