Posts Tagged ‘class action settlements’

June 30 roundup

June 24 roundup

  • “IP Lawyer Who Spotted Expired Patent on Solo Cup Lid Loses Quest for Trillions in Damages” [ABA Journal, earlier on “false markings” suits here, here, etc.]
  • Like we’re surprised: Linda Greenhouse favors sentimental (“Poor Joshua!”) side in 1989 DeShaney case and hopes Elena Kagan does too [NYT Opinionator, my take a few years back]
  • Why is Le Monde in financial trouble? For one thing, firing a printing plant employee costs €466,000 [Frédéric Filloux, Monday Note via MargRev]
  • “Will these salt peddlers stop at nothing?” Michael Kinsley on NYT sodium-as-next-tobacco coverage [Atlantic Wire]
  • “‘Victim’ Gets $4.17 Coupon, Lawyers Get $10 Million Cash”: Expedia class action settlement [John Frith, California Civil Justice Blog]
  • Scruggs investigation finally over as feds drop probe of political operative P.L. Blake; several figures in Mississippi scandal are up for release soon from prison [Jackson Clarion Ledger]
  • $20 billion Gulf spill fund: “Oil Gushes and Power Rushes” [Sullum, Althouse]
  • “NYC Naked Cowboy to Naked Cowgirl: Stop copying me” [AP]

June 21 roundup

  • After Mohawk Industries settlement, many employers could be sitting ducks for suits claiming that hiring illegal workers is RICO violation [Helman, Forbes, earlier]
  • Teen tries to help child lost in store, winds up facing felony rap of false imprisonment [Greenfield]
  • Federal magistrate in debt collection case: letter on law firm letterhead implies threat to sue [Legal Intelligencer]
  • On “professional” class action objectors [Ted at PoL]
  • Coal company claims ventilation system ordered by government regulators might have been a cause of deadly April mine explosion [WSJ]
  • Senate committee approves judicial nomination of John (“Jack”) McConnell, impresario of Rhode Island lead-paint litigation; William Jacobson explains critics’ charges regarding couching of legal fee as purported hospital donation [Legal Insurrection]
  • Hey, stop siphoning that oil slick, we haven’t checked your life jackets and extinguishers [GatewayPundit] Gulf oil rig registered for purposes of regulation in remote Pacific island chain [Legal Blog Watch] Richard Epstein on oil spill liability [WSJ] BP will never pay full price of accident [Popehat] Check back in 2031 to see how the litigation went [Alex Beam, Boston Globe]
  • American Constitution Society holds panel discussion on Iqbal and Twombly [BLT] “Is It Too Much to Ask That a Lawsuit Be ‘Plausible’?” [Richard Samp, WLF Legal Pulse]

June 8 roundup

June 1 roundup

Volkswagen sunroof class action settlement

Lawyers sued German automaker VW charging that water could leak into the car from the sunroofs on some of its models. Ted Major is not enthralled with the resulting settlement:

For many class members (such as myself), the only benefit they will receive is a piece of paper to put into the owner’s manual that says “check your sunroof drains every 40,000 miles.” That’s it, no reimbursement, no inspection, no free drain cleaning, nothing.

Lawyers say that and other benefits to class members, including an $8 million repair fund, are worth $125 million and justify a fee of $30 million plus $1.5 million in expenses. A fairness hearing in federal court in New Jersey is scheduled for June 26.

“An Empirical Study of Class Action Settlements and Their Fee Awards”

Brian Fitzpatrick (Vanderbilt), on SSRN:

This article is a comprehensive empirical study of class action settlements in federal court. Although there have been prior empirical studies of federal class action settlements, these studies have either been confined to securities cases or have been based on samples of cases that were not intended to be representative of the whole (such as those settlements approved in published opinions). By contrast, in this article, I attempt to study every federal class action settlement from the years 2006 and 2007. As far as I am aware, this study is the first attempt to collect a complete set of federal class action settlements for any given year.

I find that district court judges approved 688 class action settlements over this two-year period, involving nearly $33 billion. Fewer than 40% of the settlements were in securities cases, but the the vast majority of the money involved in the settlements came from securities cases. The $33 billion transferred by these 688 federal court class action settlements is, according to one estimate, equal to 10% of the money transferred by the entire American tort system over this two-year period. Of this $33 billion, roughly $5 billion was awarded to class action lawyers, or about 15% of the total. Most judges chose to award fees by using the highly discretionary percentage-of-the-settlement method, and the fees awarded according to this method varied over a broad range, with a mean and median around 25%. Fee percentages were strongly and inversely associated with the size of the settlement. The age of the case at settlement was positively associated with fee percentages. There was some variation in fee percentages depending on the subject matter of the litigation and the geographic circuit in which the district court was located, with lower percentages in securities cases and in settlements from the Second and Ninth Circuits. There was no evidence that fee percentages were associated with whether the class action was certified as a settlement class or with the political affiliation of the judge who made the award.

May 5 roundup