Justice Alito Addresses A Federal District Judge’s Policy Of Requiring Race- and Gender-Conscious Selection of Class Counsel
In each loss, a Justice has issued a separate statement intimating that the lower court had erred. That’s pretty remarkable.
How to end pointless class actions, redux
On Wednesday, Bates sided with the objectors. He denied approval of the settlement, finding that it unfairly released class claims for monetary damages.
Diaper deal that gave $2.73M to lawyers, one-box refund to customers is nixed by 6th Circuit
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.
Lessons From CCAF On Designing Class Action Settlements
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.
Appeals Court Says Legal Fees in Diaper Suit are Ir-rashional
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.”
P&G’s diaper rash settlement flushed by court
“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.
Class Action Activist asks SCOTUS to Review Charity-Only 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.
Lawyers Lose $2M Award for HP Inkjet Settlement
Instead, the lower court "estimated the 'ultimate value' of the settlement to the class at roughly $1.5 million," Smith wrote, noting that it recognized "that it would be improper to award fees that outstrip the calculated class benefit."
Conscientious Objector
The biggest target of Frank’s ire, however, are settlements that award what he sees as excessive legal fees to the plaintiffs attorneys. He’s currently challenging the proposed $590 million settlement of a class action brought in 2008 on behalf of Citigroup Inc. shareholders who accused the financial giant of misleading investors about the risks of its derivative business.
Toys ‘R’ Us $35 Million Antitrust Accord Overturned
“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.”
