Appeals Court Returns Class Action To Lower Court After Only $225,000 Paid Out To Class Members, But $12M Awarded To Attorneys And Third-Party Universities

"We think the court got it half right," attorney Adam Schulman, who argued the CEI's position before the appeals court, told the Northern California Record, adding that the remanding of the attorney fees was welcome, but it still allowed millions of dollars to be disbursed to non-class members. The institute objects to the way the "cy pres" doctrine is used in class actions.

Appeals Court Returns Class Action To Lower Court After Only $225,000 Paid Out To Class Members, But $12M Awarded To Attorneys And Third-Party Universities
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Class-Action ‘Charity’ Racket

Enter Ted Frank and Melissa Holyoak, who objected to the settlement. They argued that the distribution of funds violates the federal rule for civil procedures that a class-action settlement be “fair, reasonable, and adequate.” The class counsel must also “fairly and adequately represent the interests of the class.”

Disputers Of Google Privacy Deal Cite 9th Circ. Award Ruling

“EasySaver is a disturbing example of how the Ninth Circuit’s lenient approach to cy pres in class action settlements creates an incentive for class attorneys to favor sending money to their preferred causes and institutions even when distribution of funds to the class is feasible,” said [Ted] Frank.

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