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…

Cy Pres You’ll Read This

Today, Washington Legal Foundation published a short and useful working paper authored by James M. Beck and Rachel B. Weil titled "Cy Pres" Awards: Is the End Near for a Legal Remedy With No Basis in Law?

Wasserman on cy pres

University of Pittsburgh Law Professor Rhonda Wasserman has a paper on cy pres forthcoming in the USC Law Review, The paper discusses in detail two CCAF cases, In re Baby Products Antitrust Litig., and Marek v. Lane.

November 4 Press Release re Marek v. Lane

Chief Justice Roberts acknowledged the need for the Court to address the increasing use of cy pres settlements. He wrote, “…review of this case might not have afforded the Court an opportunity to address more fundamental concerns surrounding the use of such remedies in class action litigation, including when, if ever, such relief should be considered….In a suitable case this Court may need to clarify the limits on the use of such remedies.”

October 15

Tomorrow morning, the Supreme Court will announce orders relating to two cert petitions we filed.

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.

Marek v. Lane

An opinion by Chief Justice John Roberts expressed concerns over the practice of cy pres, acknowledging the need for the Supreme Court to address the issue in a future case.

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