RadioShack Corporation’s (RSH) Class-Action Settlement Anulled By Federal Appeals Court

Wall Street PR reports on the case in which the Seventh Circuit court sided with CCAF's argument that plaintiffs' lawyer fees must be proportionate to the benefits for class members.

A federal appeals court has declared the class-action settlement between RadioShack Corporation (NYSE:RSH) and its customers as void, stating that the actual benefits of the consensus were too low in comparison to the proposed legal fees. The settlement was intended as a resolution to customers who opposed RadioShack’s printing the credit and debit card expiry dates on receipts. The customers claimed Radio Shack had violated the federal Fair and Accurate Credit Transactions Act as this practice put them at an increased risk of identity theft in case the receipt was lost.

Ted Frank who represents a couple in the case was hailed the court’s decision, stating that the beneficiaries in any class-action settlement must be the class members and the thrust must be on the actual recovery rather than a hypothetical inflated figure.

Read the full article at Wall Street PR.