Class Action lawsuits - lawyers get rich, we get ...

[MilDoc]

Received a notice in the mail today about a Class Action settlement with TracFone cell phone company, which LOML has. Seems they "misrepresented" their terms of agreement. The sttlement entitles her to 20 free minutes of air time when and if she renews her TracFone time card.

20 minutes ....

Wonder how many millions the lawyers got????

[Ed62]

Sprint had a lot of problems charging people for things they did not use, and other charges over and above the rates allowed. I think their Class Action Suit has been settled, with the customers getting adjustments. Now it remains to be seen if they change their policies. Cell phone services are notorious for this type of thing.

Ed

[cabinetman]

The sttlement entitles her to 20 free minutes of air time when and if she renews her TracFone time card.

I'm not a lawyer, but reading that if there was a settlement, why would she have to do anything to benefit the company as part of her entitlement. This sounds like a sales promotion scam.

It's like those envelopes that get mailed that look like they are from the government, but they really are just some sales scam from car companies, motgage brokers, and others that wind up in my mailbox.

[crokett]

What Cabinetman said. Class-action lawsuits normally don't require any action beyond correctly joining the lawsuit.

[MilDoc]

No, Cabinetman, this is a true CA suit settlemant. Yeah, she has to join the class to get her free "20 minutes." She doesn't do anything to benefit the company, but she doesn't her her 20 "free" minutes (worth at most $30) until she re-ups.

My point: she gets 20 minutes free, the lawyers get millions or even tens of millions.

Yeah for the USA legal system!

[LCHIEN]

I really do think those are legitimate class action lawsuits. HOWEVER:
Someone thought the company did something wrong. overcharging or double charging. So on behalf of all users he gets a lawfirm interested.
A long legal process ensues, they subpoena info about all the customers that may have been affected, the lawyers mail the users and ask if they want to join the lawsuit. Costs nothing to the users so lots of them do. Many don't for reasons - don't think its legit, or won't get much.

Lawsuit drags on, finally the company reaches a settlement - something of value to give to the affected participating users. Depending on how how strong the suit is and how good the negitiators are for either side, the plaintiffs start by asking for cash and the defendant tries to get away with as little as possible.
finally they agree on some cash for the lawyers to cover expenses, and some merchandise for the customers that is of some value but requires expenditure of more money or at least the customers continue to do business. something like
1) 20 minutes free air time for returning customers (The above quote example) that on paper might be worth $10 but really costs nothing for the co, to provide.
2) accessories like free or discounted extra battery or carrying case if you upgrade phone, or accessories for other products related to the plaitiffs suit. (e.g. once a food processor offered us some food processing accessories at a discount as part of a price fixing lawsuti settlement.)
3) upgrade of car rental (This was offered to me)

This is very common in that the defendant is more willing to give compensation that is worth something to the users but that costs them little and encourages business. Natch the lawyers make sure they get cash, first.

[MilDoc]

This is very common in that the defendant is more willing to give compensation that is worth something to the users but that costs them little and encourages business. Natch the lawyers make sure they get cash, first.

Costs them little? It costs the company millions in lawyer's fees (theirs and the class lawyers who brought the suit, both at $200+++ per hour), court costs, etc etc etc. And the truly injured parties to the CA lawsuit get a pittance.

[TheRic]

I know what you are saying Mildoc. I have been involved with a couple of class action lawsuits. I have received papers telling me how the money was divided out. The ones I saw was something like, 45% to the lawyers, and 45% to the people, 10% to the people who started the thing. Once you factor in a million people in that 45% it don't mount to much.

On the flip side, if someone didn't bring the lawsuit forward you would have gotten nothing. Even if you knew about the problem. The ones I was with, I knew about 1 of the 3 before I got the papers telling me. Of the other two, one I had no problem, the other I did have the problem, but it was a minor inconvenience.

You normally have the option to join the class action, OR you can file your own. Most people go with the class action, it's not costing them nothing, and they may get something back. Filing your own will cost you money and you may or may not get something back, no mater what the outcome of the class action lawsuit was.

[cgallery]

Costs them little? It costs the company millions in lawyer's fees (theirs and the class lawyers who brought the suit, both at $200+++ per hour), court costs, etc etc etc. And the truly injured parties to the CA lawsuit get a pittance.

I don't know that I have a problem w/ this. Imagine if the rewards for taking these cases were substantially less. Law firms would avoid class action lawsuits and CA (Corporate America) would walk on us like door mats (even more than they already do).

[jackellis]

A few of these suits are legitimate. Lots of them are filed to enrich the lawyers.

The ones I hate most involve companies that supposedly misrepresented their financial condition. The stock price drops. Milberg, Weiss or whatever they call themselves today files a suit. In many cases, it's the same plaintiff who *just happens* to be unlucky enough to own stock in all these companies that are misrepresenting something. Lawyers walk away with millions of *my* money, 'cause I'm a stockholder in some of these firms.

In other cases, like frequent flyer programs, people decide they don't like the rules so they file suit to have them changed. I don't like the fact that the airlines can change the rules whenever they like but the government does this all the time. Just look at the tax code!

[MilDoc]

I don't know that I have a problem w/ this. Imagine if the rewards for taking these cases were substantially less. Law firms would avoid class action lawsuits and CA (Corporate America) would walk on us like door mats (even more than they already do).

And how about a greater reward for the "injured" parties and less for the lawyers? How about actual costs for the lawyers instead of inflated fees? And why do I say that? Because I have lots of friends who are lawyers, many involved in "personal injury." Write a letter, collect $200,000, give your client $80,000. Collect $120,000 for a letter, do not pass Go.

[dlminehart]

And the money to the lawyers is only the tip of the iceberg. Look at all the "cover your a$$" expenses incurred by corporations to avoid getting clobbered by the lawyers! If you've been hired anywhere recently, you'll recall all the paperwork you had to initial confirming you'd been told by the company that you had to be a good boy (no ageism/sexism/racism/ism-ism allowed), the videos you had to watch, the briefing by the HR department, etc. etc. Not to mention all the "This roll of barbed wire is not intended for human consumption" stuff that now exceeds in length the instructions on how to use the products.

[Slik Geek]

I don't know that I have a problem w/ this. Imagine if the rewards for taking these cases were substantially less. Law firms would avoid class action lawsuits and CA (Corporate America) would walk on us like door mats (even more than they already do).

Instead, the lawyers are taking us to the cleaners. That seems so much better, doesn't it? Right. Tens of millions of dollars in legal fees for each class action lawsuit, and you think that CA is the evil entity taking advantage of America??? I've seen company executives go to prison for taking advantage of the masses, how many attorneys have had the same fate?

There is a steep hidden cost in our society to cover the cost of lawsuits - you and I pay it each and every time we purchase any product or service.

I'd rather reform the system to continue to provide protection for legitimate injuries and fraud, and eliminate the legalized extortion practiced by a number of attorneys. Silly me, I forgot, most of our legislators are attorneys too! Don't expect any substantive reform from our lawmakers - it is too profitable for them.

Most settlements in class action lawsuits are useless for the class members. The only winner is the attorney and his wealthy law firm, and perhaps the original person making the complaint.

I propose a simple change in the law: The attorneys in class action lawsuits receive the same settlement means that the class receives. If members of the class get a $20 coupon for one year of new cell phone service, the attorneys get a whole bunch of those coupons. If the attorney fees were $20,000,000, they get one million coupons. If this were the law, there would be fewer class action lawsuits because only real instances of injury would be pursued and the settlements would be legitimate (cash), not useless coupons.

[BrazosJake]

Whats worse is that those legal costs are hidden in everything we buy.