Objector to $10M Target Breach Deal Fails to Sway Judge
"Although these class members had their financial data stolen, they are releasing future-damages claims against Target in exchange for nothing," Holyoak said.
"Although these class members had their financial data stolen, they are releasing future-damages claims against Target in exchange for nothing," Holyoak said.
CCAF recently objected to the proposed class action settlement, class certification, and class attorneys' fees request in Kumar v. Salov North America Corp. on behalf of class member Ted Frank. The plaintiffs in this case alleged the defendant deceptively marketed their Filippo Berio brand olive oil as “Imported from Italy,” when many of the olives used to make the oil came from other countries.
On July 7, 2017, the district court granted final approval of the settlement, even though more than 80 percent of the settlement fund would go to class counsel rather than the class members.
“In a class action settlement with Citigroup shareholders, lawyers tried to direct a leftover balance from the settlement fund to advocacy groups that clash with the interests of class members,” said Ted Frank. “But now, after CEI objected to that unfair outcome, class attorneys have discovered a way to send those remaining settlement dollars to class members.”
CCAF objected Thursday to an unfair settlement that leaves class members with virtually nothing, their attorneys with over half of the settlement fund - $1.35 million - and most remaining funds to an unrelated organization.
CCAF represented an objector to a settlement over allegedly mislabeled food that proposes to pay class counsel over half the settlement fund, $1.35 million ($2593/hour), while ensuring that the class receives virtually no benefit.
A Massachusetts federal judge credits the Center for Class Action Fairness with helping him "evolve" his thinking on a complicated and controversial class action case.
As in the overwhelming majority of strike suits, the settlement in Gordon v. Verizon did not provide any monetary relief to shareholders. Instead, it provided immaterial supplemental disclosures and corporate governance change. Due to CCAF's objection, the court awarded a reduced amount of $1.5 million in fees and expenses.
“It’s ironic, because any corporation caught telling investors something this misleading would surely face litigation from Labaton and Thornton,” Frank said after the hearing.
“The settlement was unfair because the attorneys' fees award was grossly disproportionate to the relief actually delivered to the class, Holyoak said. "Before the Center for Class Action Fairness objected, the plaintiffs’ attorneys were to receive $2.11 million, while the class members would have received $412,815 in coupons.”