A Class-Action Settlement’s Value Isn’t Always Clear Cut
Wall Street Journal reports on Ted Frank's objection to the Sirius XM settlement because it would have no benefits to the class members who were wronged.
Ted Frank, a public-interest litigator who often takes aim at class-action settlements, filed an objection to the deal, which included $13 million in fees to the plaintiffs' lawyers.
After Judge Harold Baer rebuffed Mr. Frank's objection and approved the settlement, Mr. Frank appealed to the Second Circuit Court of Appeals. He plans to argue that because the company had recently been discounting its prices to keep customers, its promise not to raise prices was essentially worthless. Said Mr. Frank: "Just as a coupon to buy a Gray's Papaya hot dog for $16 has no intrinsic value, a coupon to buy a service for $16 a month when it's available for $5 isn't worth anything, either."
Read the full article at the Wall Street Journal.