Overlawyered: Chronicling The High Cost Of Our Legal System

Posts Tagged ‘class actions’

Update: Milberg Weiss indicted

Following a six-year investigation, the nation’s best-known plaintiff’s law firm is the subject of a 102-page federal indictment charging it paid millions in illegal kickbacks to a stable of docile “named plaintiffs” in its suits, and engaged in elaborate concealment and deception to keep the details of the scheme from coming to the attention of courts, class members and others. (“Top Law Firm Indicted in Alleged Scheme to Pay Plaintiffs for Class-Action Suits”, AP/FoxNews.com, May 19; Julie Creswell, “Milberg Weiss Is Charged With Bribery and Fraud”, New York Times, May 18; Josh Gerstein, “Criminal Charges Levied Against Big Tort Law Firm”, New York Sun, May 19).

Blog reaction: Stephen Bainbridge; Tom Kirkendall; Evan Schaeffer; Greg Mitchell; Jonathan B. Wilson.

Our extensive earlier coverage: Apr. 7, Nov. 18 and links from there.

Filed under: , ,

Where’s his Mother’s Day present?

More entrepreneurial lawyering in California:

A Los Angeles psychologist who was denied a tote bag during a Mother’s Day giveaway at an Angel game is suing the baseball team, alleging sex and age discrimination.

Michael Cohn’s class-action claim in Orange County Superior Court alleges that thousands of males and fans under 18 were “treated unequally” at a “Family Sunday” promotion last May and are entitled to $4,000 each in damages.

(Dave McKibben, “L.A. Psychologist Who Didn’t Get Tote Bag at Mother’s Day Angel Game Files Lawsuit”, Los Angeles Times, May 11). Cohn’s attorney is Alfred Rava, who (as the L.A. Times really should have found out by Googling Overlawyered, if not its own archives) was among the key figures in the 2003 spree by which owners of San Diego nightspots were hit up for handsome cash settlements for having held “Ladies’ Night” promotions. The Unruh Act, California’s distinctively liberal civil rights statute, allows complainants to demand $4,000 a pop for such misdeeds, and it’s no defense to suggest that the customer’s primary reason for getting involved in the underlying transaction may have been to set up the $4,000 entitlement. More: “Lex Icon” wishes to make clear that he’s not the kind of lawyer who files cases like this (May 13).

Filed under: , , , , ,

The heartbreak of small fonts

It seems Wal-Mart was supposed to use 10-point type for its “While Supplies Last” disclaimer when advertising its Early Bird specials in Utah, but instead used 7-point type. So naturally Matthew Howell, an attorney with the Provo law firm of Fillmore Spencer, has filed a would-be class action lawsuit against the giant retailer, on behalf of named clients Brandon and Tonya Barker. (Grace Leong, “Couple files suit over Wal-Mart early-bird deals”, Provo Daily Herald, Apr. 21).

Filed under: ,

Update: modified Netflix settlement approved

Customers get four rentals or a free month; Netflix won’t automatically renew those who sign up; the attorneys get $1.3 million, with a potential additional $1.1 million if more customers sign up for the deal, down from the original $2.5 million guarantee. (Michael Liedtke, AP/Mercury-News, May 1 (h/t Slim)). See our previous six posts, starting at Apr. 2.

Filed under:

“Eye-popping” class action fees

Norm Pattis, who says he has litigated scores of unreasonable search claims on behalf of individual plaintiffs, has some thoughts (Apr. 18) on excessive class action fees, occasioned by the news that in Connecticut, “a simple case against the Department of Corrections involving strip searches of inmates is about to yield a $2.5 million settlement. Of that [sum], about $834,000 will go to attorney’s fees.”

Filed under: , ,

What plaintiffs’ lawyers really care about, part 376

Allegations of misconduct pop up as lawyers fight over a $1.5 billion pot and how much should go to which attorneys and how much should go to class members, deposing each other in the process to gain ammunition for their arguments for freezing particular firms out. The story is complex; unfortunately, space limitations in the Daily Business Review prevent more than a cursory discussion. (Carl Jones, “Millions in Fees in ExxonMobil Case Delayed Amid Lawyer Misconduct Claims”, Apr. 28).

Filed under: ,

Update: “Million Little Pieces” class actions

Following the revelation that author James Frey presented fantasies as if they were autobiographical fact, enough outraged readers have stepped forward to demand cash damages — or at least enough class action lawyers have simulated the stepping forward of such outraged readers — that defendants Random House and Doubleday are now seeking the consolidation of no fewer than twelve lawsuits filed around the country. The federal Judicial Panel on Multidistrict Litigation will soon consider (PDF, scroll to p. 11) the publishers’ motion to aggregate into one proceeding suits filed in the Southern District of New York, Northern District of Illinois, Western District of Washington, Eastern District of Michigan, Central District of California, and Southern District of Ohio (via Childs). For Ted’s extensive coverage of the Frey scandal and suits, see Jan. 31 and links from there.

Filed under: , , , ,

Western Digital hard drive settlement

Two readers have written in to call attention to the terms of a settlement by Western Digital of a class action over the disparity between the announced size of its hard drives and the amount that is usable (settlement notice/FAQs). Reader Bill Evans says the settlement will “affect only aftermarket drives, class members to get $7.50 for each drive and will be able to download backup software. Lawyers get $485,000 plus $15,000 for expenses.”

Reader Mickey Ferguson writes:

Some months ago I bought a Western Digital hard drive. I now see that a class action suit was brought against WD, claiming that they misrepresented their drive capacities. What was the remedy? They offered me software – EMC Dantz Retrospect Express version 7.0 for Windows users and version 6.1 for Mac users – for which I have no use or interest. I have much better backup software that I’ve already purchased. Plus, it has been reported in various locations on the network to be incompatible with Microsoft Windows .NET 2.0 framework, a common component in many recent software programs.

There are no other remedies. Either I take the software, which has very little commercial value and none to me personally, or I write a letter to the court, voicing my concerns above, that will immediately be trampled by both plaintiff and defense attorneys, who both want the settlement to go through because the settlement essentially costs WD very little (useless software that they OEM anyway), and the plaintiff attorneys get their percentage of the settlement. As usual, the plaintiff attorneys make huge sums of money, and the actual victims get nothing of any particular value.

P.S. Just to be clear, I don’t feel like I’ve been harmed in any way, nor do I feel entitled to any settlement. I knew ahead of time exactly the game they play. All drive manufacturers have played the game, and this is just a way for an attorney to make a lot of money over nothing. If it were my preference, I’d rather the judge throw the entire suit out and sanction the lawyers for a frivolous lawsuit, but I know that would never happen, and frankly, there are some people out there who don’t know the difference between 1 GB and 1 billion bytes, to whom there is a claim of (very slight) harm.

Update: Jul. 3.

Filed under: , ,