In a successful federal class action against AT&T, the class was about six million members, but only 6,961 people filed claims on the $10.2 million fund after $500,000 in advertising. The lawyers have already been paid $6.2 million, or nearly 38% of the common fund. At least the settlement was structured so that it's the claimants who get most of the windfall rather than unrelated third-party charities. But heaven forfend they use actual AT&T customer lists. The attorneys say that doing so would have cost $2 million (an implausible claim), but even that would have resulted in more money in the class's pockets. And the attorneys didn't have any compunction in asking for an extra $2 million for themselves above the 25% benchmark at the class's expense. [SF Chronicle via @Russell_Jackson]
0.1% claim rate in "successful" class action
Related Entries:
- "Attorney fee-only" bankruptcy plans
- Apple iPhone 4 bumper class action settlement
- Around the web, March 13
- Plaintiffs' lawyers protect their cartel by bringing antitrust suit
- Day v. Persels & Associates
- Apple class actions
- Around the web, February 21
- Asbestos litigation and search-engine optimization
- Sixth Circuit brief in Pampers Dry Max class action
- "A Public Letter From the Cobell Lawyers Prompts Ethics and Harassment Concerns"
- Around the web, January 27
- Where are the aggressive class action defense lawyers?
- That $285 million Delaware award by Strine
- Frankel on Baer race quota orders