Assuming the $145 billion punitive damages verdict in the Florida tobacco class action is not revived by the state’s supreme court, one major loose end remains, but it’s a really big one. Three tobacco companies agreed to fork over $710 million in exchange for class counsel’s agreeing “not to challenge a new state law, passed at the behest of the cigarette makers, capping appeals bonds at $100 million.” The enormous sum was placed in escrow for the class, but now the class does not exist since it’s been decertified. Does the class somehow get reconstituted for purposes of dividing the booty? Does it go back to the defendants? To some worthy cause? And how much of it, if any, are plaintiff’s lawyers Stanley and Susan Rosenblatt going to be allowed to grab for themselves? The agreement between the Rosenblatts and the three companies says nothing about decertification. (Matthew Haggman, “The $710 Million Question”, Miami Daily Business Review, Jun. 19).

Filed under: class actions, Stanley and Susan Rosenblatt, tobacco