Rule 1714.Compromise. Settlement. Discontinuance.

This rule guards class members against deals made over their heads. No class action may be compromised, settled, or discontinued without the court’s approval after a hearing. Before certification, the representative may discontinue without notice to the class only if the court finds the discontinuance will not prejudice the members.

Once a class is certified, notice of any proposed settlement or discontinuance must go to all members in the manner the court directs. The rule also makes clear that parties may propose, and the court approve, a settlement that creates no residual funds. The approval-and-notice requirements keep the representative and counsel accountable to the absent members whose claims they control.