One of the leading ways for self-dealing class counsel to benefit themselves at the expense of the class is through what are called cy pres settlements.
At plaintiff's request, the Michigan state court enjoined Moughni, and forced a change to the Facebook page to put forward Ahmed's preferred view of the case. This is a scary First Amendment violation, and that the court signed off on it makes one wonder whether the court can fairly adjudicate objections to the settlement. Public Citizen is on the right side in this one, and, along with the ACLU, is litigating in favor of the objector's rights.
Lots of people are talking about Baby Products, some of whom talked to me.
“The settlement has resulted in a troubling, and, according to counsel for the parties, surprising allocation of the settlement fund,” the judges said. “Though the parties contemplated that excess funds would be distributed to charity after the bulk of the settlement fund was distributed to class members through an exhaustive claims process, it appears the actual allocation will be just the opposite.”
We won reversal of the settlement approval in the Baby Products, No. 12-1165 (3d Cir. Feb. 19, 2013). The settlement had paid $14M to the attorneys, but less than $3M to the class.
Fewer than 20,000 class members have bothered to go through the arduous claim procedures in the Bayer Corp. class action, which caps recovery for most of those class members at $4 unless they saved several-year-old receipts for aspirin products. The class will ultimately receive well under $500,000.
Class counsel have a $3.9 million lodestar, but are seeking $16.5 million for a settlement where the class will get three cents on the dollar for their alleged damages. The Center is objecting on behalf of a client.
In addition to the objection to the Citigroup Securitiessettlement, we were busy in December: Another bad coupon settlement: In re EasySaver Rewards Litig., No. 09-cv-2094 (S.D. Cal.). The $20 face value of the coupons is illusory, because the coupons preclude the use of the normal 20% offers on the defendant's website. Of course, the class counsel is seeking fees based on the face value; the settlement has illegal cy pres, too. We objected on behalf of…
In the In re Apple MagSafe Power Adapter Litigation, the attorneys walked away with $3.1 million, while the class got less than $1 million, and likely less than a quarter of what the attorneys got. The district court (Judge Ware in the N.D. Cal.) not only rubber-stamped the settlement while ignoring the Bluetooth precedent, but then issued an order to protect the illegitimate settlement, requiring a punitive appeal bond or the dismissal of any…
