Various cosmetic companies settled a class action suit today. They were accused of price-fixing and collusion, the rank enemies of a competitive market. The companies, by and large, settled — it’s probably cheaper to do that than to litigate, given the chance (however slight) of a jury giving the class a bonanza of a deal. So, what do all the wrong customers get? One (1) item. Enough lipstick to last a few weeks. What do the lawyers get? The AP didn’t mention it, but I’m sure it’s a lot more than a tub of mascara and some blush. Would anything make a class action lawyer blush? (“Settlement could give away $175 million in cosmetics,” AP, Jul. 22). Update Apr. 14, 2004: settlement challenged; May 19: more details; Dec. 3, 2004 and Mar. 14, 2005: judge approves settlement.
A Lipstick-Up
Various cosmetic companies settled a class action suit today. They were accused of price-fixing and collusion, the rank enemies of a competitive market. The companies, by and large, settled — it’s probably cheaper to do that than to litigate, given the chance (however slight) of a jury giving the class a bonanza of a deal. […]
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