Class action watch: “A proposed legal settlement that could deliver about $64 million to American Express cardholders and up to $11 million to plaintiffs’ lawyers is under assault from rival attorneys who say the company should be paying much more. … Those challenging the pact say American Express conducted what amounts to a ‘reverse auction’ by shopping around until the company found a group of attorneys that would accept the lowest settlement offer.” There are indications that Miami federal judge Cecilia Altonaga is giving the objections more credence than is often done: she “ruled last fall that the critics could demand documents and testimony about the claims explored by lead attorneys on the case”, which usually doesn’t happen. The lawsuits allege that Amex applied fees and unfavorable exchange rates to American cardholders’ purchases in foreign currencies. (Josh Gerstein, New York Sun, Feb. 4). Update on settlement of objections: Point of Law, Aug. 22, 2007.

Filed under: class actions