Social media can be a game-changer for class actions. I was recently reminded of this when reading news coverage of a proposed class settlement of claims involving chicken that a fast food restaurant allegedly had improperly described as halal. A Michigan lawyer, who wasn’t involved in the case, had taken to Facebook to complain that… Continue Reading
Tag Archives: cy pres
Third Circuit Rejects Class Settlement Because Class Fund Went to Class Counsel and Cy Pres Rather than Class Members
Posted in Class Action SettlementsWe’ve blogged before about federal courts’ increasing reluctance to approve class settlements that involve a significant cy pres component. The Third Circuit’s recent decision in In re Baby Products Litigation (pdf) is the latest example of this trend. Class counsel often use the distribution of funds to handpicked charities in order to disguise the percentage of… Continue Reading
In re Groupon, Inc., Marketing & Sales Practices Litigation: Judicial Skepticism Of Cy Pres Dooms Another Settlement
Posted in Class Action SettlementsPast posts have noted that federal courts have become increasingly skeptical of class-action settlements that contain a cy pres component. Another recent example is In re Groupon, Inc., Marketing & Sales Practices Litigation (S.D. Cal.). The plaintiffs in this case alleged that Groupon violated various federal and state consumer-protection statutes by marketing vouchers with allegedly improper restrictions… Continue Reading
Schlesinger v. Ticketmaster: California Trial Court Rejects “Pure” Coupon Settlement As Well As “Clear Sailing” Agreement To Pay Class Counsel $15 Million In Attorneys’ Fees
Posted in Class Action SettlementsOn September 26, California Superior Court Judge Kenneth Freeman rejected a proposed class settlement of allegations that Ticketmaster had misled ticket buyers by implying that fully disclosed charges for an Order Processing Fee and delivery by U.P.S. represented its actual costs. Before commenting on the grounds for rejecting the settlement, though, I can’t resist observing that… Continue Reading
Second Circuit: Insufficient Notice of Class Action Settlement Means That Class Members Can Bring Copycat Class Actions
Posted in Appeals, Class Action Settlements, Class Certification, Rule 23(b)(2), SuperiorityThe Second Circuit’s recent decision in Hecht v. United Collection Bureau, Inc., No. 11-1327 (2d Cir. Aug. 17, 2012), should sound alarm bells for any business that attempts to settle a class action. The takeaway from the decision is to make sure that notice of the settlement to absent class members is adequate. Under some… Continue Reading