Federal Appeals Court Declares Radioshack Corporation (RSH) Class-Action Settlement Void

Stockwise Daily reports on the Redman v. RadioShack Corp. and mentions Center for Class Action Fairness' Ted Frank and his reponse to the outcome of the case.

The settlement by RadioShack Corporation (NYSE:RSH) is only $1 million yet the class members are 83,000. The amount thus translates to a mere $10 voucher for every class member. The vouchers are redeemable only at RadioShack Corporation (NYSE:RSH) stores.

The judge also considered the fact some of the vouchers may not be redeemed by customers due to various reasons, something that might substantially reduce the settlement amount even further.

There are lawyers who opposed the settlement, but have also opposed the legal fees attached to the litigation.

Ted Frank, a lawyer who also represented a couple in the case, was happy with the court’s decision. He went further to say that the beneficiaries should be the class members, and any settlement should be based on actual recovery and not inflated figures that won’t benefit the class.

Read the full article at Stockwise Daily.