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Object to a class action settlement, face a RICO suit



Perhaps we shouldn't rush to conclusions about this filing by plaintiffs' counsel in Madison County, Ill., who are aiming a complaint under the federal RICO racketeering law against two lawyers and a Florida resident who had sought to block a $63.8 million class action settlement over the drug Paxil. After all, not all class action settlements are a bad deal for class members, some objections to such settlements are unmeritorious, and there are even some bad objectors out there who are more concerned with being paid to go away than with saving class members from a bad deal. Still, it may not take many treble-damage RICO suits before both types of objector, the helpful and the unhelpful alike, begin to reconsider showing up in court, will it? (Steve Gonzalez, "Plaintiffs in $63 million Paxil case claim 'objectors' violated RICO in new class action", Madison County Record, Jun. 9)(cross-posted from Overlawyered).

 

 


Rafael Mangual
Project Manager,
Legal Policy
rmangual@manhattan-institute.org

Katherine Lazarski
Manhattan Institute
klazarski@manhattan-institute.org

 

Published by the Manhattan Institute

The Manhattan Insitute's Center for Legal Policy.