Ninth Circuit Clarifies Class Action Standing

In Healy v. Milliman, Inc.— F.4th —-, 2026 WL 71863 (ninth Cir. Jan. 9, 2026), the Ninth Circuit addressed a key Article III standing query left open by the Supreme Courtroom in TransUnion LLC v. Ramirez594 U.S. 413 (2021) – whether or not unnamed class members should current not less than some proof of concrete harm on a class-wide foundation in opposition to abstract judgment.

The motion was introduced underneath part 1681e(b) of the Truthful Credit score Reporting Act, 15 U.S.C. § 1681e(b). Milliman, a danger administration, advantages, and know-how agency based mostly in Seattle, had compiled credit score stories containing insurance coverage candidates’ medical historical past and bought them to insurers. Plaintiff Healy utilized for all times insurance coverage with one in every of Milliman’s insurer shoppers. He alleged Milliman equipped incorrect info to the insurer based mostly on one other individual’s medical data, which precipitated his software to be denied, after which did not well timed examine and proper the errors when notified.

The district court docket licensed an “inaccuracy class” comprised of individuals whose Milliman stories contained info pertaining to different people. Milliman moved for abstract judgment on Healy’s FCRA declare, arguing {that a} report with some allegedly inaccurate info didn’t essentially display harm. The U.S. District Courtroom for the Western District of Washington agreed, dismissing the claims of the inaccuracy class for failure to ascertain class-wide standing.

Challenge: What’s required for named and unnamed class members to ascertain Article III standing on the abstract judgment stage in a Rule 23 class motion for damages?

Holding: After class certification, in a category motion in search of financial damages underneath FRCP 23(b)(3), each named and unnamed class members should current proof of standing on the abstract judgment stage. In opposing abstract judgment, Plaintiffs should submit proof as to each named and unnamed class members exhibiting a real dispute of fabric truth relating to standing.

Software by the Courtroom:

• Notably, the Ninth Circuit panel held that the district court docket had erred by requiring direct proof of concrete harm for class-wide standing, thus setting an unduly excessive bar at abstract judgment.
• As a substitute, the Ninth Circuit dominated that plaintiffs can use both direct or circumstantial proof to point out a real dispute of fabric truth as to standing.
• Plaintiffs needn’t show {that a} jury “essentially” would discover of their favor; they have to solely present {that a} rational trier of truth might fairly infer class-wide standing based mostly on the proof.

Appellate Final result:

• The Ninth Circuit reversed the district court docket’s grant of partial abstract judgment for Milliman, Inc. and remanded for the district court docket to find out whether or not the proof introduced (together with circumstantial proof) raised a real dispute of fabric truth as to class member standing. See Healy2026 WL 71863, at *7 (“Healy didn’t want to point out {that a} jury ‘essentially’ would discover that mismatched social safety numbers display misattributed well being data. Quite, Healy merely wanted to provide sufficient proof at abstract judgment {that a} rational trier of truth ‘might’ fairly infer that this was the case.”).

Sensible Takeaway:

For instances inside the Ninth Circuit, at abstract judgment in a post-certification class motion for damages, each named and unnamed plaintiffs should set up—by direct or circumstantial proof—a fabric dispute of truth as to Article III standing. As a sensible matter, this might put plaintiffs in a bind in opposing a defendant’s movement for abstract judgment. Plaintiffs could discover explicit class members for whom a real dispute is proven based mostly on the member’s explicit info. However then they could have laid the groundwork for a decertification movement, as a result of widespread questions of legislation and act not predominate if some class members can display harm however others can not.