Judges in California are cracking down on cozy class-action settlements

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New guidelines will give judges more leeway to reject class-action settlements that benefit lawyers too much or class members too little.

A proposed $50-million settlement over a customer-data breach at Yahoo was blocked. The judge said plaintiffs’ lawyers requested too much compensation for their own work.

“The rules are to ensure that class members are adequately protected,” said Neal Marder, an attorney with Akin Gump Strauss Hauer & Feld in Los Angeles. “Lawyers come up with clever ways to settle a case that isn’t always in the best interest of the class.” Plaintiffs’ lawyers sought $520,000 in fees for negotiating the settlement with Subway, even though most customers understand that variations in bread-making mean sandwiches may not be exactly 12 inches long, the court ruled. It said such deals amounted to “rackets” for lawyers.

“Judges will want a genuine assessment of the value of the case,” said Thomas Loeser, an attorney with plaintiff law firm Hagens Berman Sobol Shapiro in Seattle. “The new guidelines will make all class settlements better because judges will be equipped to detect marginal cases.”

 

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GOOD!!! IT'S ABOUT TIME!!! The Fucking Lawyers are the ones that keep practicly all of the 💰 in this kind of law suits!

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