CCAF objected in Poertner v. Gillette Co., a settlement of consumer fraud claims over Duracell batteries where the attorneys received $5.7 million and the class only $0.3 million, and appealed it to the Supreme Court, which unfortunately declined to review the case. CCAF’s objection, however, led class counsel to admit that the vast majority of consumer fraud settlements leave more than 99% of class members uncompensated.
On Wednesday, Bates sided with the objectors. He denied approval of the settlement, finding that it unfairly released class claims for monetary damages.
The district court sustained the Center’s objection to a settlement over shampoo labeling where the class would receive valueless injunctive relief and the attorneys sought nearly $1M for themselves.
CCAF successfully objected to a settlement that paid $1 million to plaintiffs' lawyers and provided only $830,000 in coupons to class members.
A federal appeals court has overturned a class action settlement that gave the plaintiffs’ lawyers $2.73 million and Pampers customers with receipts and UPC codes a refund on a box of diapers.
The recent decision by the Sixth Circuit, overturning approval of a class action settlement in In re Dry Max Pampers Litigation (6th Cir. Aug. 2, 2013), is another in a string of wins for the Center for Class Action Fairness, which objects to settlements it considers unjust, and another reminder to class action defendants that they have to bear objections in mind when negotiating settlements.
That settlement was challenged by the Center for Class Action Fairness, a Washington nonprofit that challenges class-action settlements it views to be unfair. “When attorneys get more than the class is getting, it’s an unfair settlement,” said Ted Frank, the organization’s founder. “The class counsel owes an obligation to its clients to get a good deal for them before it gets paid.”
“We’re very pleased – we’re doing this to play traffic cop and make the law better,” Frank said. “The class attorneys have a fiduciary responsibility to their clients, but a lot of attorneys prefer to just negotiate settlements where they get all the money and their clients get imaginary relief.” Far too often, Frank said, judges rubber stamp such settlements.
On Friday, Frank and lawyers from Baker Hostetler filed a petition for a writ of certiorari at the U.S. Supreme Court, asking the justices to review the 9th Circuit Court of Appeals’ approval of a $9.5 million settlement of class action allegations that Facebook’s now-dismantled “Beacon” program violated users’ privacy by revealing their online purchases.
Thanks to the Center’s objection, the parties negotiated a new settlement providing the class with more than $3 million additional recovery.
