Ted Frank joined the podcast “Oliver Bateman Does the Work” to discuss HLLI’s history of objecting to unfair class-action settlements.

Our innovation was recognizing the shape of the system. The lawyers are trying to get paid. The defendant is trying to get out as cheaply as possible. The way you accomplish both is to structure a settlement where the class does not actually get anything, and then, to get it past the judge, you pretend the class is getting something. In the American system you do not ask to be in a class action. You are just in it unless you affirmatively opt out. The lawyer shows up with one class member and says, this person represents everybody else, I now represent everybody with your permission, Your Honor, and look at this great settlement I won, so please appoint me as counsel for the entire class. Twenty years ago especially there was a long history of attorneys structuring settlements so the attorneys got all the money and the class got nothing, while pretending there was real injunctive relief, or coupons, or something that was not actually worth anything.

Listen to “Oliver Bateman Does the Work.”