Case Description
Private plaintiffs filed a class action against Capitol One Bank. The parties reached a settlement, which was approved by the federal district court in Florida. The settlement covered natural persons in the United States who had enrolled in or been charged for Payment Protection by Capital One. A year and a half after the settlement was approved, defendants sought to enjoin the attorneys general of Hawaii and Mississippi from prosecuting cases against the defendants. The court declined to enjoin the Attorneys General, stating, “The Court’s Order approving the settlement and closing this case did not bind the States of Mississippi and Hawaii. The Attorney General of Mississippi and Hawaii were not defined as class members and did not have an opportunity to participate in the litigation or opt out of the class.” The court also disagreed with defendants arguments that it should enjoin the Attorneys General under the Anti-Injunction Act, which the court held did not direct a court to issue an injunction “to prevent a non-party from litigating its claims.” .The court agreed with the state of Mississippi that “the State’s sovereign interests were neither raised, actually litigated, nor resolved in the [class action.]”
