Class action lawyers to be paid in gift cards

The client class members were to receive only gift cards, not cash, in the settlement with Windsor Fashions, a clothing retailer, so Los Angeles Superior Court Judge Brett Klein thought it only fair to provide that Yorba Linda attorney Neil B. Fineman be paid his fee with “12,500 ten-dollar Windsor Fashions gift cards.” (Metropolitan News-Enterprise via California Civil Justice Blog) (& welcome Megan McArdle readers).


  • I wonder if the IRS will accept some of those gift cards for the portion that is taxable … I am going guess not and that the lawyer is going to have to pay real cash to cover the ‘earnings’ of those gift cards LOL

  • […] Unfortunately, I can’t confirm the story, but I can say that other reputable blogs, such as Overlawyered, seem to have picked it up, maybe for its entertainment value more than for its news-worthiness.  […]

  • […] the many reactions to our item last week on a Los Angeles judge who ordered that class action counsel be paid in gift cards (having […]

  • I hadn’t even considered the tax implications of these settlements. It’s cute… but not fair under any sense of the word.