Judge in $590 mln Citigroup accord says ‘next best’ not needed for cy pres
Reuters Legal reports on a judge's ruling in CEI's Center for Class Action Fairness's objection of an unfair class action settlement with Ted Frank.
A federal judge on Tuesday said $374,820 left over from a $590 million settlement with Citigroup Inc shareholders may be distributed to three nonprofit groups under the "cy pres" doctrine, even though they may not be the "next best" beneficiaries of the payout.
The decision by U.S. District Judge Sidney Stein in Manhattan is a defeat for Ted Frank, a prominent critic of class action settlements he considers unfair.
He opposed paying a respective 37.5 percent, 37.5 percent and 25 percent of the leftover funds to South Brooklyn Legal Services, the National Consumers League and the Consumer Federation of America, saying their interests were too remote from those of the shareholders who sued.
Frank, in an email, said he plans to appeal.
Read the full article at Reuters Legal.