Class-Action Objector Ted Frank Has Another ‘Cy Pres’ Challenge at SCOTUS
“The circuit split is still there,” Frank said. “They granted cert on it before and the Ninth Circuit is still signing off on some really appalling cy pres settlements.”
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.
photo credit: www.proflowers.com
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.
CCAF Files Brief with Supreme Court Arguing Ninth Circuit’s EasySaver Decision Underscores Need for Proposed Cy Pres Standard
Today the Center for Class Action Fairness filed a supplemental brief with the Supreme Court, arguing the Ninth Circuit’s decision in the EasySaver case earlier this month underscores the need for its proposed standard governing cy pres settlements in class action suits when the court decides Frank v. Gaos. “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…
Easysaver Coupon Settlement Deal Affirmed, Fees Toppled
A deal resolving claims that online consumers were automatically enrolled in a rewards program will stand, but the $8.7 million fee for class counsel must be recalculated, the Ninth Circuit held Oct. 3.
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CCAF Wins Attorney Fee Challenge After Ninth Circuit Rules EasySaver Settlement Violated CAFA
“We are gratified that the court rejected class counsel’s attempt to evade the Class Action Fairness Act’s restrictions on coupon settlements, but the fact that the court was willing to countenance attorneys choosing to prefer their alma mater and local San Diego schools to nationwide class recovery while collecting 15 to 40 times as much as their clients shows why the Supreme Court needs to reverse in Frank v. Gaos. We are considering our options for further review.”
Coupon Settlements: Two Steps Forward, One Step Back
Coupon relief is notoriously bad for consumers in class action settlements. CCAF seeks reversal of the settlement approval in EasySaver to reiterate the limited exception of Online DVD and ensure a more uniform and correct application of CAFA.
Bi-Partisan Group of Attorneys General File Brief Supporting CCAF’s Challenge of ProFlowers’ Worthless Coupon Settlement
Attorneys general from 13 states filed an amicus brief supporting the Center for Class Action Fairness (CCAF) in its challenge of an unfair class action coupon settlement that involves Provide Commerce, Inc., the parent company of Proflowers.com. The case, In re: Easysaver Rewards Litigation, is on appeal before the U.S. Court of Appeals for the Ninth Circuit. In Easysaver, class counsel intentionally inflated the value of the settlement—to the tune of $38 million—in order to…
photo credit: www.proflowers.com
Center for Class Action Fairness Changes Landscape of ‘Cy Pres’ Settlements
This blog post was published when the Center for Class Action Fairness was a project of the Competitive Enterprise Institute. The Center for Class Action Fairness (CCAF) has long opposed abusive “cy pres” settlements that benefit third-party beneficiaries instead of compensating class members; Ted Frank wrote about the issue in 2008 before founding CCAF, and Ted Frank has testified to Congress concerning cy pres settlements. As Reuters reporter Alison Frankel wrote after CCAF’s win in the Eighth…
A Rose by Any Other Name Would Smell Just as Sweet, but These Flower-Delivery Settlement Coupons Are Noisome Even When You Call Them “E-Credits”
Academics don’t often have the opportunity to publish an article opining on the correctness of a pending appeal, but our appeal in EasySaver Rewards Litigation, challenging a settlement that pays attorneys nearly $9 million and the class only $225,000 and nearly worthless coupons, is one such case.
photo credit: www.proflowers.com