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Class Action Rip-Off -- 900% Contingent Fee -- I Can't Stand It Anymore



As Ted Frank has reported elsewhere, he (thanks to his Center for Class Action Fairness) is my attorney in an objection I have filed to a proposed class action settlement.

The class, subscribers to Classmates.com, is to receive next to nothing in the settlement (the grand total distributed is just over $100,000). Plaintiffs' attorneys get just over $1,000,000 for this magnificent service -- a tidy 900% contingency. The class judge gets to distribute $500,000 to the charity of his choice -- is this a way of ensuring approval of the settlement? To object, four different letters must be posted -- the stamps themselves may cost more than any payoff for prospective objectors. Well, I (though my attorney) am objecting. Hopefully, my case will produce a new precedent precluding such abuse.

 

 


Isaac Gorodetski
Project Manager,
Center for Legal Policy at the
Manhattan Institute
igorodetski@manhattan-institute.org

Katherine Lazarski
Press Officer,
Manhattan Institute
klazarski@manhattan-institute.org

 

Published by the Manhattan Institute

The Manhattan Insitute's Center for Legal Policy.