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Objection in Babies "R" Us class action settlement

The Babies "R" Us settlement in McDonough v. Toys "R" Us, Inc., No. 06-cv-242 (E.D. Pa.) has the attorneys requesting a $14 million share of a $34.24 million settlement fund—over 40% of that denominator. But the remainder of the $20 million isn't even entirely designated for the class (third parties are designees for much of the amount, and there's an unedifying cy pres provision in the settlement), so the requested award to attorneys will likely be much higher than 40% of class benefit. The settlement demonstrates many of the ways class action attorneys maximize fees while minimizing cost to defendants unwilling to settle for much more than nuisance amounts. Last week, the Center for Class Action Fairness LLC, through attorney Dan Greenberg, filed an objection on behalf of a class member. (I manage CCAF, but it is not affiliated with the Manhattan Institute.)

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Rafael Mangual
Project Manager,
Legal Policy

Manhattan Institute


Published by the Manhattan Institute

The Manhattan Insitute's Center for Legal Policy.