Blackman

“Courts Should Stop Approving Unfair Class Action Settlements”

A “claims-made” class action settlement allows the defendant to make a large amount of money “available” to class members, but in order for the members to collect, they must jump through the hoops of correctly filing claims. Because of the low response rate in such settlements, the defendants will end up paying much less than the funds made available. Indeed, of the $8.5 million made available …


Opinion: Courts Should Stop Approving Unfair Class Action Settlements

Class actions play a vital role in our legal system. These lawsuits are often the only vehicle for injured plaintiffs to receive compensation when a defendant’s wrongs are widely disbursed and it would be impractical for a single individual to sue. Yet the process of settling these suits is subject to perverse incentives on the part of the lawyers representing the injured parties.