US Supreme Court reverses decision to rule on class action question

By Mike Scarcella

June 5 (Reuters) - The U.S. Supreme Court on Thursday sidestepped resolving a major issue across class action litigation, turning aside an appeal that could have made it harder for plaintiffs lawyers to bring together groups of people to sue companies and others for alleged wrongdoing.

The justices’ order said the court had “improvidently” agreed in January to hear an appeal by diagnostics testmaker Labcorp, which was challenging a lower court’s order that allowed thousands of consumers to sue the company in a class action for damages.

Labcorp's petition focused on a key issue in class actions that implicates billions of dollars: whether judges can certify a class action for damages that includes some members who have not been harmed.

After hearing arguments in the case in April, the Supreme Court took the unsual step on Thursday of dismissing the appeal.

The order did not discuss the merits of the appeal or the court's reasoning. Justice Brett Kavanaugh wrote separately that the court should have ruled for Labcorp.

Labcorp and a lawyer for the company at law firm Jones Day did not immediately respond to requests for comment.

The plaintiffs’ lead attorney, Deepak Gupta, in a statement said Labcorp’s appeal was procedurally flawed, and called the Supreme Court’s order a win for his clients.

“Class actions are a critical tool for ensuring access to the courts,” Gupta said. “Today’s dismissal leaves the law of class actions intact, allowing people to band together to hold powerful corporations accountable for their misconduct.”

The case had attracted many friend-of-the-court briefs at the Supreme Court, as business advocates, legal scholars, antitrust litigators and others tried to influence the justices.

Visually impaired consumers sued Labcorp in 2020 over their inability to use the company’s self-service check-in kiosks where a person enters information prior to an appointment for a blood draw or urine screening.

Labcorp said many blind patients either were not aware of the kiosks or had no interest in using them. A federal district court judge in 2022 certified a nationwide class that made claims against Labcorp under the Americans with Disabilities Act and other laws.

In its petition, Labcorp said U.S. appeals courts are divided over whether to certify a class action that includes people who have not been injured.

The possibility that the justices might dismiss the case without ruling on the merits came up at the Supreme Court’s argument in April.

Gupta, responding to a question, told the justices that Labcorp could still ask a lower judge to decertify the class action. “They’re not without rights,” Gupta told the court.

The case is Laboratory Corp of America v Davis, U.S. Supreme Court, No. 24-304.

For petitioner: Noel Francisco of Jones Day

For respondent: Deepak Gupta of Gupta Wessler

Read more:

Class action administrators, banks accused of kickback scheme in new lawsuits

Marriott wins US appeals order striking down data breach class action

This Supreme Court case could upend class actions

Lawsuit accuses American Arbitration Association of monopolizing consumer market