Podcast: When Enough is not Enough: Frank v. Poertner
Ted Frank speaks to the Federalist Society Litigation Practice Group Podcast regarding his cert petition with the Supreme Court in Frank v. Poertner.
Ted Frank speaks to the Federalist Society Litigation Practice Group Podcast regarding his cert petition with the Supreme Court in Frank v. Poertner.
The Center for Class Action Fairness recommends the court select lead plaintiffs’ counsel through a competitive bidding process among the dozens of attorneys expected to apply.
Today, the CCAF filed a cert petition before the U.S. Supreme Court asking for review of a class action lawsuit settlement in Poertner v. The Gillette Co. The original case centered on a lawsuit over dubious advertising claims made about Duracell batteries. Class counsel structured a settlement that paid themselves $5.7 million, paid a small fraction of class members a total of $344,850, and left over 99 percent of the class with nothing.
CCAF attorney Anna St. John said, “If awarded in full, the excessive fee requested by class counsel would transfer to plaintiffs’ attorneys tens of millions of dollars that rightfully belong to class members. It’s an all-too-common example of attorneys purporting to represent consumers harmed by unlawful business practices, when in reality these attorneys try to harm those same consumers again by seeking far more than they are entitled to by law.”
CCAF is concerned the Judicial Panel will not consider judicial track records in scrutinizing the fairness of settlements when deciding who to transfer the case to.
(Reuters) - A federal district judge abused her discretion in awarding a nonprofit money left over from a $490 million securities class-action settlement concerning the 1998 merger of BankAmerica and NationsBank that created Bank of America Corp, a divided federal appeals court ruled on Thursday.
Judge Posner agreed with little of what the lower court determined, but he found the trial judge's refusal to consider the cy pres amount in calculating the class benefit correct "for the obvious reason that the recipient of that award was not a member of the class."
Posner, ruling in favor of objectors in Pearson v. NBTY, outlines a series of conflicts and deceptions that any class-action lawyer worth her salt would sue over in an instant. But in this case it was the lawyers who perpetrated them, with the help of a judge who was all too willing to overlook the economic realities of the consumer class-action business.
See the opening brief for what "is perhaps the best 13,000-word summary of CCAF philosophy."
Ted Frank, a lawyer who also represented a couple in the case, was happy with the court’s decision. He went further to say that the beneficiaries should be the class members, and any settlement should be based on actual recovery and not inflated figures that won’t benefit the class.