Trending Topic: Complexities in Class Action Litigation Highlight Judicial and Administrative Challenges
Chicago, IL – August 21, 2025 – In her latest Critical Mass newsletter, Law.com’s Amanda Bronstad reports on significant developments in two high-profile class action cases, underscoring the complexities of multidistrict litigation (MDL) and settlement administration. U.S. District Judge Rebecca Pallmeyer dismissed a second bellwether trial in the infant formula MDL on August 13, 2025, following her earlier dismissal of the first trial in May, while lawsuits against claims administrators are complicating the distribution of a $725 million settlement in the Facebook Cambridge Analytica privacy case.
Infant Formula MDL Faces Another Setback
The infant formula litigation, centralized in the Northern District of Illinois, involves over 100 lawsuits alleging that cow’s milk-based formulas manufactured by companies like Abbott Laboratories and Mead Johnson caused necrotizing enterocolitis (NEC), a severe gastrointestinal condition, in premature infants. On August 13, 2025, Judge Pallmeyer granted summary judgment in favor of the defendants in the second bellwether case, citing insufficient evidence linking the formula to NEC under updated Federal Rule of Evidence 702 standards and new scientific developments since the initial Daubert hearing in 2020. This follows her May 2, 2025, dismissal of the first bellwether trial, which also failed to meet evidentiary thresholds.
The dismissals have raised concerns among plaintiffs’ attorneys, with some, as reported by Bronstad, arguing that the rulings could jeopardize the broader MDL. The litigation, which includes claims from parents and hospitals, has drawn significant attention due to its implications for infant nutrition safety. A March 2025 Illinois jury awarded $60 million in the first NEC-related verdict, highlighting the stakes, but the recent setbacks suggest challenges in proving causation, potentially impacting future trials and settlement prospects.
Facebook Settlement Disrupted by Claims Administrator Lawsuits
The $725 million class action settlement addressing Facebook’s Cambridge Analytica data privacy scandal, approved in 2023, has encountered obstacles due to lawsuits against claims administrators Epiq, Angeion, and JND. Filed on August 15, 2025, these lawsuits allege that the administrators received kickbacks from financial services companies to distribute digital payments to the 17 million class members who filed claims. The accusations, detailed in Bronstad’s newsletter, claim that these arrangements inflated costs and delayed payouts, frustrating the settlement process.
Lawyers for the class, scrambling to address the allegations, argue that the lawsuits threaten the integrity of the settlement, one of the largest privacy-related resolutions in U.S. history. U.S. District Judge William Alsup, overseeing the case, has expressed dismay at the volume of claims and the administrative complications, noting the potential for further delays. The controversy underscores broader concerns about transparency in class action settlement administration, with plaintiffs’ attorneys seeking to protect the distribution process while addressing the new legal challenges.
Broader Implications for Class Actions
Both cases highlight ongoing issues in managing complex MDLs and settlements. The infant formula dismissals reflect the judiciary’s increasing scrutiny of scientific evidence under revised evidentiary standards, potentially setting a precedent for other product liability cases. Meanwhile, the Facebook settlement disputes reveal vulnerabilities in claims administration, prompting calls for stricter oversight of third-party administrators. Posts on X have echoed these concerns, with users criticizing delays in settlement payouts and questioning the reliability of mass tort litigation processes.
Bronstad’s reporting emphasizes the dynamic nature of class action litigation, where judicial rulings and administrative hurdles can significantly impact outcomes. As the infant formula MDL prepares for future bellwether trials and the Facebook settlement navigates legal challenges, these cases will continue to shape the landscape of consumer protection and data privacy litigation.
Sources: Law.com, Reuters.com, BloombergLaw.com