“A Little Wal-Mart Gift Card for You, A Big Payout for Lawyers”

“A member of a class-action lawsuit received a Walmart gift card as part of a settlement, but because of a legal ambiguity, the real gift may be for the lawyers.” With bonus Ted Frank interview quotes [David Segal, “The Haggler,” New York Times] And more on the mentioned Duracell case as showing why the Supreme Court should police class action settlements, as Cato has urged in a brief [Ilya Shapiro]


  • Why is it that coupons are considered acceptable at all? If a plaintiff is awarded damages in a normal lawsuit for something like negligence or breach of contract, he will normally receive cash. How did it become so common for class action damages to consist of coupons? Even if the lawyers for the plaintiffs are colluding with the defendants, why on earth would judges allow this scam?

    • “Why is it that coupons are considered acceptable at all?”

      Because just identifying the affected class members and how much in damages they are individually due would cost too much.