May 9, 2008

Charleston Gazette: "West Virginia University's College of Law received the biggest gift in its history on Friday, $8 million of unclaimed money from a settlement of a nationwide class-action lawsuit against H&R Block Inc." It was all very cozy and convenient since the judge presiding over the case had suggested the law school as a beneficiary, and the money seemed to be, you know, just sitting there.

Ted has a very fine article in the new issue of the Federalist Society's Class Action Watch on the dangers of cy pres disposition of unclaimed class action funds, and how they can magnify the unaccountable power of the lawyers and other participants in such cases. Our earlier coverage -- including a case where Vanderbilt's law school got $2.9 million -- is here.

More: Reader Skip Oliva writes, "Does anyone actually track or keep a master list of slush funds? I've followed a couple of antitrust-related ones, but I've never had the resources to compile a general list."