SCOTUS Raises Class Certification Bar in Wal-Mart v. Dukes
A landmark ruling overturned class certification for 1.5 million female employees and significantly tightened the 'commonality' standard for all plaintiffs.
The U.S. Supreme Court has reshaped the landscape for class action litigation, reversing certification for a historic 1.5 million-member class of female Wal-Mart employees alleging gender discrimination. In its 5-4 decision in Wal-Mart Stores, Inc. v. Dukes, the Court held that the plaintiffs failed to meet the commonality requirement of Federal Rule of Civil Procedure 23(a). The majority found the plaintiffs’ theory—that Wal-Mart’s discretionary “corporate culture” led to biased pay and promotion decisions by local managers—was insufficient to prove all plaintiffs suffered the same injury. Writing for the Court, Justice Scalia stated that the decentralized, subjective decision-making was the “opposite of a uniform employment practice” that could tie the claims together. This ruling significantly raises the bar for plaintiffs, requiring more than common allegations; they must show a common contention capable of class-wide resolution. The decision provides defendants a powerful tool to defeat certification, particularly in large-scale employment disputes, and has broad implications for consumer and securities class actions as well. Counsel should immediately reassess the viability of pending class claims in light of this demanding new standard.