Class-Action ‘Charity’ Racket
WSJ cited CEI’s Senior Attorney Ted Frank and Senior Attorney Melissa Holyoak on Frank v. Gaos.
Google proposed to settle the case by paying $5.3 million into a fund that would be distributed to third-parties that “promote public awareness and education” or “support research, development, and initiatives, related to protecting privacy on the Internet.” While attorneys for the class stood to receive $2.125 million, members wouldn’t get a penny.
Enter the Competitive Enterprise Institute’s Ted Frank and Melissa Holyoak, who objected to the settlement. They argued that the distribution of funds violates the federal rule for civil procedures that a class-action settlement be “fair, reasonable, and adequate.” The class counsel must also “fairly and adequately represent the interests of the class.”