Posts Tagged ‘class action settlements’

September 23 roundup

September 22 roundup

  • Proposed Costco fuel settlement: $0 for class, $10M for attorneys. [CCAF]
  • Senator Specter’s latest attempt to curry favor with trial lawyers. [Ribstein; see also Corporate Counsel]
  • The Frank-Gryphon paper on the game theory of medical malpractice settlements is now posted. Comments welcome. [SSRN]
  • Heritage panel on tort reform in the states features Mississippi Gov. Haley Barbour. [Summary at Point of Law]
  • Liability waivers ignored and Texas Motor Speedway on the hook for $12 million after a 12-year-old driver strikes 11-year-old in the pit area. [Fort Worth Star-Telegram; id. on pre-trial]
  • Martha Raye turning over in her grave, as trial lawyers target denture cream as next mass tort. [AP/Washington Post]

“In $2.9 M ‘Blast Fax’ Settlement, Plaintiffs Get Coupons and Lawyers Get Cash”

Pitney Bowes, the office supply giant, will pay some Georgia lawyers $950,000 and make available discount coupons to class members to settle charges that it improperly sent faxes to customers of a toner business it bought in 2007. [Fulton County Daily Report] I’ve written and blogged about the junk-fax law here as well as on this site.

“A Lawyer Who Tries to Block Settlements”

The Sep. 21 issue of Forbes magazine, now on newsstands, has a lengthy profile by Dan Fisher of my founding of the Center for Class Action Fairness, complete with a photo of my ugly mug gracing the story.

Of interest is a new revelation in the infamous Toshiba class action:

After few consumers availed themselves of a $2 billion settlement over supposedly defective laptop computers in 2000, for example, Toshiba America handed $353 million to a Beaumont charity whose chairman was plaintiff attorney Wayne Reaud, the lawyer on the case. Six years later the charity was still sitting on $250 million and the Texas attorney general sued for breach of fiduciary duty, including paying its president, W. Frank Newton, $560,000 in 2004. Newton is the former president of the State Bar of Texas.

Furor over Ford Explorer class action settlement

The settlement discussed in this space July 17 — in which lawyers nabbed more than $25 million in fees and expenses, while fewer than 100 consumers redeemed Ford coupons worth $37,500 — was covered by the Associated Press last week, which stirred outrage in many quarters [Krauss/PoL, Greenfield, Cal Biz Lit]. As Cal Civil Justice notes, the settlement was purportedly on behalf of owners who suffered no rollover or other mishap. Instead, it sought damages for losses in the vehicle’s resale value due to adverse publicity, a nicely circular theory, since the adverse publicity was in good measure propelled by various allies of the plaintiff’s bar. Interestingly, several groups that had opposed the settlement dropped their objections after it was rejiggered to require Ford to provide a $950,000 donation to what are described as nonprofit auto-safety groups (which ones?). Plaintiff’s firm Lieff Cabraser, in a letter to AP, cited that and changes in Ford advertising as reasons why the settlement provided more benefit to the customer class than can be measured by the coupons alone.

Miami fire fee, cont’d: Adorno faces possible bar discipline

“Hank Adorno, head of the nation’s largest minority-owned law firm, violated nine Florida Bar rules when he engineered a $7 million class action settlement that distributed money to only seven people instead of all Miami taxpayers, the state regulatory agency for attorneys claims.” [Billy Shields, Daily Business Review and Law.com; earlier here and here]

Cincinnati Bengals to pay $250,000 in suit over season tickets

“The fans will split $50,700 with no one receiving more than $2,600 and most getting just $100. Their attorneys will get $175,000.” [Huntington, W.Va. Herald-Dispatch] More: Cincinnati Enquirer. To be fair, the main benefit of the litigation to the fans was evidently not the cash that changed hands, but the stipulation that they were not obliged to buy further tickets they said they had never agreed to buy.

July 21 roundup

  • “Plaintiffs’ Attorneys to Get $800,000 in Preliminary Settlement, Class Members Receive Zero” [Calif. Civil Justice covering Bluetooth settlement in which Ted was objector; earlier here and here]
  • “Lawyer Jailed for Contempt Is Freed After 14 Years” [Lowering the Bar, earlier]
  • Money makes the signals go ’round: another probe of red-light cameras yields few surprises [Chicago Tribune, Chicago Bungalow, Bainbridge on Washington, D.C.]
  • Previously little-known company surfaces in E.D. Tex. to claim Apple, many other companies violate its patent for touchpads [AppleInsider via @JohnLobert]
  • Child endangerment saga of mom who left kids at Montana mall is now a national story [ABC News; earlier post with many comments; Free Range Kids and more]
  • Meet Obama Administration “special adviser on ‘green’ jobs” Van Jones [“Dunphy”, McCarthy at NRO “Corner”]
  • Irrationality of furloughs at University of Wisconsin should provide yet another ground to question New Deal-era Fair Labor Standards Act [Coyote]
  • Australia’s internet blacklist is so secret you can’t even find out what sites are on it [Popehat – language] Oz to block online video games unsuitable for those under 15 [BoingBoing]