Class Action Lawsuits

[crokett]

Got a notice yesterday that I am a member of a class action against a company. 100 million is being held in escrow until a judge approves the settlement. After lawyers' fees, court costs, etc I get 20 bucks or they divvy up the rest among the plantiffs, whichever is greater.

[sacherjj]

Well, your aren't the only one. Wonder how much of the pie each of us will get?

[Hoyden]

Got notice last week that I am a member of a class action. If I send the form back in I get 2 months of the service I didn't want and canceled before.

Attorneys making lots but consumer gets very little and most times the company getting sued just continues business as usual

[MilDoc]

Let's see, $100 million for the class, and how many 10's (or 100's) of millions for the lawyers?

[crokett]

Let's see, $100 million for the class, and how many 10's (or 100's) of millions for the lawyers?

Well the lawyers get paid out of that 100 million. The typical percentage is anywhere between 30 and 50%. So you do the math. If you want a very basic overview into class actions, read John Grisham's book 'The King of Torts'. Granted it is fiction but after I read it I did a little of my own research and that is more or less how it works.

[Ed62]

[QUOTE=crokett;255292] If you want a very basic overview into class actions, read John Grisham's book 'The King of Torts'. QUOTE]

My wife reads his stuff. Now whenever something underhanded goes on in the news, she knows exactly what's going on, and she doesn't trust anybody (sometimes I think, including me).

Ed

[JSCOOK]

I think it's ONLY the Lawyers that ever really come out ahead in these ...

This past fall I got notice of a class action lawsuit (which was a first for me), in regards to a publicly traded high Tech corporation (well known in both Canada & US) in which I held x number of shares. The "corporation" got caught with faulty/fixed financial reports ... the shares pretty much tanked almost overnight, resulting in me losing almost $10K ... but time is on my side as it was for retirement .

I'm not holding my breath, but hoping that there is some sort of restitution made to the shareholders ... and that a very LOUD and CLEAR message sent to rest of the public companies ... the corruption has to stop soon.

[Thalermade]

A month or so ago we got a notice of a Verizon class action lawsuit. From what I remember, I would get a 10 or 20 dollar discount for a few months. BUT, to accept it, I was required to sign a new two year contract.
Really makes you wonder.....

[jziegler]

I seem to get at least on letter a year (and have been for some years now). I guess I buy the wrong stuff. Let's see, the DRAM settelment, probably wouldn't get anything worthwhile for that one. One for something about the service department of a car dealer that I went to for a while, good only for a discount on a new car. Something from a printer company, good for a discount on printer supplies. Really, these settlements only cost the companies in money that goes to the lawers. The indivduals get nothing of worth. Oh, and the oil sludge thing on my wife's Camry, Toyota is offering an extended warrenty I think. A bit better than the others, I suppose, but the mileage is high enough that it probably wouldn't matter anyway.

Way too many stupid lawsuits out there these days.

Jim

[lago]

I have had several class action lawsuits and the one that benefited me the most was Firestone tires on a Mountaineer. Got a free set of tires after 50K miles.

Ken

[Jeffrey Schronce]

Best one every was Hollywood Video. In exchange for quirky late fee application they settled for a few million. Each opt in person got . . . . .. . . . . . . . ..

Ready? . . . ..

Rent one new release, get a old release for free coupons!!!!! The settlement is that you have to spend money and do business with them. I thought that was marketing?

[maxparot]

I've been a member of quite a few class action suits and been paid off on at least a couple. Last one I got paid for was against Epson I got a $45 credit to be used on their website.
Some of them end up being worth very little and it can be a surprise to find out about them.

[Rodent]

The attorneys don't make as much as you might think on these things. It's pretty hard to get a percentage contingency fee on a class settlement. The attorneys often get "Lodestar" fees, which are basically just the reasonable hourly rate for their services. One study found that the average fee is closer to 20 percent, whether hourly or contingency. In each settlement notice you get, there should be information about the attorney's fees in the settlement.

I agree that some of the settlements are pretty silly. Coupons and other such things. But, you can opt out of the settlement if you don't like it. You can hire a lawyer and pursue the claim on your own. Of course, the relatively trivial nature of these things usually means hiring a lawyer is a waste of time.

The main function that these suits serve in our society is to keep companies honest and in compliance with the law, not to repay consumers for minor breaches.

I was a member of a class settlement involving a car where the manufacturer overstated the horsepower by 1 hp. Was I "harmed?" Legally, yes, but actually no. I got a year added to my warranty, and I personally think I got overpaid.