Ted’s Center for Class Action Fairness has been contesting a class action settlement as overly generous toward lawyers’ interests. The underlying lawsuit claims failure to warn of hearing loss from high-volume headset use. [CCAF, Bader/Open Market] More: California Civil Justice, Aetherczar.
Posts Tagged ‘class action settlements’
April 8 roundup
- “Litigation nightmare” seen in Unvarnished, site that allows Yelp-like review of people’s reputations [L.A. Times, Balasubramani] Arkadelphia, Ark.: “16-year-old boy accuses mother of Facebook slander” [AP]
- Inadvertent rape? At Duke, “perceived power differentials” might negate consent [Popehat, Joanne Jacobs]
- New CPSC leadership signals policy of greatly stepped-up fines for CPSIA violators [Northup, Rick Woldenberg/Amend the CPSIA ($2 million Daiso fine) and more]
- “PI Lawyer Pleads in $2.2M Client Theft, Will Get Between 3 and 9 Years” [ABA Journal, NY Daily News, earlier; Marc Bernstein of Bernstein & Bernstein, NYC]
- Let’s say landlords who knowingly rent to accused criminals or released convicts can get sued for negligence in case of repeat offense. Then where do we propose that accused criminals and released convicts live? [Volokh]
- Some theories on lawyer unpopularity [DeVoy, Legal Satyricon]
- Privacy class action over ill-advised Facebook “Beacon” venture settles for… for what, exactly? [Popehat]
- Wisconsin D.A. to teachers: if you obey state’s new sex-ed law, I’ll prosecute you [Radley Balko, Reason “Hit and Run”] More: Volokh.
“If you purchased Dannon yogurt…”
Legal notice advertisements announce the $35 million giveaway over alleged mismarketing of the Activia and DanActive brands. [New Jersey Lawsuit Reform Alliance] NJLRA’s Ann Marie McDonald:
I eat Dannon yogurt products fairly regularly. I haven’t been dissatisfied yet. It’s difficult to assess whether my body’s defenses have been strengthened by the product itself or the placebo effect. I doubt a $35,000,000 asterisk will make that any clearer. Nevertheless, I’d still be able to participate in this lawsuit, even though I don’t feel deceived and suffered no adverse [effects] from using it.
CCAF amicus brief in fen-phen fees case
Overlawyered readers are well aware of the sorry history of the fen-phen litigation; those that aren’t are advised to check out Professor Lester Brickman’s summary.
In April 2008, the Diet Drugs MDL district court awarded $567 million the class counsel in that case, basing the award in part on representations by class counsel about future class recovery. A year later, a plaintiff’s attorney requested the court reopen the question of the fee award because the class counsel had exaggerated those estimates. The district court refused, holding that the one-year delay in bringing the Rule 60(b) motion was not a “reasonable time.” There has been an appeal to the Third Circuit, and, today, the Center for Class Action Fairness filed an amicus brief in support of the appeal that itself provides a short overview of the history of the fen-phen MDL. Many thanks to Chris Arfaa for his generous help in filing the brief.
Scary Stephen King text message worth $175 in class action settlement
Some 60,000 cell-phone users who had signed up to receive “promotional messages” from Nextones.com in order to get a free ringtone got just such a text message on January 18, 2006 advertising a cell-phone-related Stephen King book. This resulted in a class action that was thrown out on the grounds that plaintiffs had agreed to “terms and conditions” permitting such cell-phone advertising; moreover, the federal law prohibiting the use of an automatic telephone dialing system applied only to systems that dialed numbers randomly or sequentially, and the defendants were operating off of a list of opt-in telephone numbers.
The Ninth Circuit reversed. The issue, it said, was not whether phone numbers were sequentially dialed, but whether the equipment used could hypothetically sequentially dial telephone numbers. It also held that there was a disputed issue of fact whether King’s publisher, Simon & Schuster, counted as an “affiliate.”
Faced with the prospect of going to trial and the risk of $500 to $1500 damages assessed for each call (i.e., $30 to $90 million in damages) defendants have settled. There is a settlement fund of $10 million established, plaintiffs can submit claims that will pay $175 (or a pro rata amount if the fund is exhausted) and plaintiffs’ attorneys will ask for $2.725 million from that fund.
This is superficially all well and good, but if the claim response is the all-too-typical 1%, the attorneys may well collect 27 times as much as the class will get. Indeed, assuming that $1 million for notice and administration disappears from the fund, the full $10 million won’t be paid out unless over half the class signs up. There is also a mysterious $250,000 “cy pres” award whose destination is not specified in the notice or in the settlement.
If you’re a class member who received the text message in 2006, congratulations, you can get free money: fill out a claim form before September 20 (and kudos to the parties for allowing claimants to do it online); if you’re a class member who has concerns about the settlement, contact me.
March 16 roundup
- Are you a member of Tyson chicken or H&R Block Express IRA class action settlements?
- Jim Copland on Harry Reid and the trial bar. [NRO]
- Jim Copland on the Ground Zero settlement, which may pay lawyers $200 million—but the judge plans fee scrutiny. [NY Post; NY Daily News]
- Kevin LaCroix interviews the Circle of Greed authors. [D&O Diary]
- Judgeships: Rhode Island lead paint trial lawyer in despite mediocre rating, but Sri Srinivasan out because of his clients—not Al Qaeda, but, heaven forfend, eeeevil corporations like Hertz.
- There’s no evidence that workers on automotive brakes (which sometimes contain asbestos) get mesothelioma at a greater rate than the rest of the population, but auto companies still get sued over it. Ford fought one in Madison County, rather than settle, and won. [Madison County Record]
- Overview of defensive medicine at work. [AP]
- Pantsless Rielle Hunter on John Edwards: “He’s very honest and truthful.” [GQ]
March 9 roundup
- From attorney Bob Ambrogi, on Twitter: “This felt wrong: Shortly after heated call with lawyer saying he’d sue my client, he sent me invite to connect on LinkedIn.” Related: Amy Alkon.
- “Spot the lawsuit in this commercial” [Louis Vuitton vs. Hyundai; Trademark Blog]
- Video: “Community swimming pool closes due to lawsuit” [Hazleton, Pa.; U.S. Chamber Faces of Lawsuit Abuse series; plaintiff’s side of things]
- Recycling, found materials, and why so much “green building” won’t last [Sippican Cottage and followup]
- German ban on homeschooling not a compelling reason to grant asylum to affected family [Krikorian, NRO, Volokh]
- Ted’s Center for Class Action Fairness files objections to a Costco fuel class settlement; related reflections from the judge in the recent Honda case;
- “Photographing Public Art: A Legal Waltz in Seattle” [Citizen Media Law, earlier]
- “Big Bankruptcies’ Big Fees Raising Questions” [Asarco, Station Casinos; Baxter, AmLaw Daily]
Dannon yogurt settlement
Class action lawyering is nothing if not an active culture. [California Civil Justice Blog]
“Proposed Facebook Settlement Comes Under Fire”
The March 2 Wall Street Journal (link dead after 7 days) covers all-for-charity-none-for-the-class “cy pres” settlements of Facebook and AOL—the latter of which was the subject of a Center for Class Action Fairness objection:
Late last year, in a class action claiming that tech giant AOL LLC improperly inserted footers in its users’ emails, Los Angeles federal judge Christina Snyder awarded $25,000 in settlement funds to a Los Angeles legal-aid organization that has the judge’s husband on its board. …
The Virginia-based [sic] Center for Class Action Fairness objected, claiming the settlement raised a conflict of interest. Ted Frank, president of the group, said that to avoid potential conflicts, it would be better to require unclaimed settlement funds to be deposited into state coffers. “The problem is that parties can now give money to a judge’s preferred charity in the hopes that it will prompt the judge to rubber stamp a settlement,” he said.
Loss-of-a-chance doctrine?
As part of a class action settlement agreeing to offer more same-sex date matching, eHarmony has allotted $500,000 to persons who can show they were harmed by its failure to offer it before. [San Francisco Chronicle, earlier]