GameStop has made a lucrative business out of reselling used videogames. Now a class-action lawsuit claims the sales are deceptive because buyers of the used games are often unable to access downloadable content and other perks available to first-sale buyers. [Kotaku, Screen Play]
Posts Tagged ‘class actions’
Too many giblets, they said
Russell Jackson records a federal court’s dismissal of a class action lawsuit filed against Perdue.
When defendants resist
A company takes the counteroffensive, verbally at least, against a class action suit [Karlsgodt] Unfortunately, the blog post is now down, apparently on advice of counsel.
Attorney’s fee spin cycle
Judge Posner caustically dispatches a fee request following the failure of a putative class action over alleged defects in Sears’ Kenmore clothes dryers [AmLaw]
“Delaware judge dumps frequent filer plaintiff attorneys”
“When forced to defend their conduct and leadership role, original plaintiffs’ counsel approached the concept of candor to the tribunal as if attempting to sell me a used car,” wrote Vice Chancellor Travis Laster, ordering the replacement of shareholder lawyers in a case against Revlon Inc. “The lawsuit was consolidated from several complaints brought by law firms that Laster describes as ‘frequent filers’ — firms which often file cases on behalf of shareholders, sometimes within in minutes of a deal being announced.” [Reuters] More: Dave Hoffman, Concurring Opinions.
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.
The retreat of Grand Theft Auto: Class Action
The case that started me on the path to founding the Center for Class Action Fairness is now over: plaintiffs voluntarily dismissed their appeal last week after voluntarily dismissing the court case February 22, giving up any shot at the $1 million in attorneys’ fees they had negotiated for themselves.
And if you’re on Facebook, do become a fan of the Center for Class Action Fairness so you can keep up with us and others can learn about it.
“Judge chops lawyer fees by $1M”
A North Carolina Business Court judge has cut a proposed fee award in an investor class action arising from the Wells Fargo/Wachovia merger “because he thought lawyers had charged too much per hour and spent too much time working on the case.” [Triangle Business Journal]
“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.
Madison County class action: Blimpie subs not meaty enough
BL1Y wonders whether the numbers add up, though (via Above the Law, Courthouse News). The class action firm filing the case is Lakin Chapman; it and its predecessor firm are well-known to longtime Overlawyered readers. More: Lowering the Bar.