Ted Frank’s class action settlement reform group, the Center for Class Action Fairness, has announced “multiple victories” in ongoing cases arising from settlements by Apple, Classmates.com, Toyota, HP, and gasoline retailers. Among the topics addressed in objection: exaggeration of benefits supposedly provided for the class, excessive attorney fees, and diversion of proceeds to groups unrelated to the class. Details here.
Posts Tagged ‘cy pres’
March 23 roundup
- New Yorker suing boss for $2M because working in New Jersey caused him “anguish” [Biz Insider]
- British lawyer’s libel threats impede UK publication of Paul Offit vaccine book [Respectful Insolence]
- Lawsuit settlement leads to Florida push to curb tobacco discounter [WSJ; background, Jeremy Bulow]
- Allegation: attorneys made personal use of cy pres fund in Armenian genocide settlement [PoL]
- “Telecommuting employees raise special wage and hour issues” [Hyman]
- UK bias cops wonder whether to ban gay-preferred along with gay-not-preferred guesthouses [Ed West, U.K. Telegraph]
- Copyright mills: “Local law firm wants to defend people sued by local law firm” [TBD] Related: [Citizen Media Law, Coleman]
- “Top 10 Reasons to Not Open a Bar or Restaurant in NYC” [NY Enterprise Report]
NYC’s outrageous Apple settlement
Among its most insidious features, notes Ira Stoll, is a $2.5 million cy pres fund earmarked for “corporate governance programs at 12 universities across the country,” and which will predictably encourage such academic programs, at law schools and elsewhere, to align themselves further with the agenda of the plaintiff’s securities bar and against the interest of actual shareholders at companies like Apple. I’ve got much more about cy pres law school slush funds in Schools for Misrule, forthcoming. [Future of Capitalism; Jim at PoL]
August 16 roundup
- Former producer at “Oprah” show — yearning for the simpler life? — takes job at rough blue-collar outfit. One $500K harassment settlement later… [Des Moines Register]
- “Insurer writing ‘loser pays’ policies to defendants” [LNL]
- “$1.4 Million Award Reversed due to Attorney’s ‘Inflammatory’ Comments” [DBR]
- New book examines shaky evidentiary basis of international criminal law convictions [Nancy Combs]
- Litigation slush funds, cont’d: new Department of Justice rules steer public settlement money to private advocacy groups [York, Examiner]
- Second Circuit upholds Judge Weinstein’s steps to curb conspiracy to evade protective order in Zyprexa case [Drug and Device Law, Dan Popeo, NYLJ] More from the busy Dr. David Egilman: “Plaintiff’s Expert Files Appeal in ‘Popcorn Lung’ Lawsuit” [On Point News and more] Also: “Being an Expert Expert Doesn’t Make You an Expert” [Zacher, Abnormal Use]
- “FTC Seeks to Clarify — and Justify — Its Blogger Endorsement Guidelines” [Citizen Media Law]
- “Winnebago cruise control” and suchlike urban legends are purposely devised and spread by sinister interests, or so claim L.A. Times and Prof. Turley [five years ago on Overlawyered]
Litigation slush funds, cont’d: Arkansas
Arkansas Attorney General Dustin McDaniel has bestowed $100,000 to assist in construction of the Arkansas Fallen Firefighters Memorial on the grounds of the state Capitol. The money came from the settlement of a lawsuit against the Pfizer drug concern, the connection of which to the cause of fallen firefighters is at best obscure. [Arkansas Online]
August 4 roundup
- “Wacky warning dept.: Steven Morris v. Harley-Davidson Motor Co.” [Wajert and Ted at PoL]
- “Are HOA Foreclosures a Necessary Tool or an Extortion Racket?” [Jurow, Business Insider]
- “Court Under Roberts Is Most Restrained in Decades” [Adler/Volokh, earlier]
- New Jersey Supreme Court confirms equestrian center’s legal protection in horseback-injury case [NJLRA]
- White-collar prosecution: Is “Conscious Avoidance” the Next “Honest Services”? [Christine Hurt, Conglomerate]
- Cy pres class action giveaways arrive in Canada [National Post]
- More on why Wal-Mart is spending big to fight a relatively low OSHA fine [Paul Greenberg, earlier]
- Older jobseekers find offers scarce? Someone should pass a law! Oh wait [four years ago on Overlawyered]
June 16 roundup
- Shameless: House leadership exempts NRA lest it sink bill to regulate political speech [John Samples, Cato]
- Employment law: “Arbitration Showdown Looms Between Congress, Supreme Court” [Coyle, NLJ]
- “Wake Up, Fellow Law Professors, to the Casualties of Our Enterprise” [Tamanaha, Balkinization]
- Move to allow international war crimes trials over “aggression,” a notoriously slippery term [Anderson, Brett Schaefer/NRO “Corner” via Ku]
- Litigation slush funds: “Cy pres bill in Ohio House” [Ted Frank, CCAF]
- “Recent Michigan Prosecutions for ‘Seducing an Unmarried Woman’” [Volokh]
- Scalia: “…least analytically rigorous and hence most subjective of law-school subjects, legal ethics” [LEF]
- Silicosis settlement scandal update: “As 2 Insurance Execs Admit Bribes, PI Lawyer Says He Can’t Be Retried” [Houston Chronicle via ABA Journal, earlier]
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.
“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.
“The Cy Pres Racket”
Karen Lee Torre, in the Sep. 28 Connecticut Law Tribune, hates cy pres even more than I do. See also Peggy Little at Point of Law.