State AGs ask U.S. SC to review lawyer payout in class action settlement

Legal NewsLine reports on CEI's Center for Class Action Fairness's challenge to a class action settlement which over a dozen state attorneys general asked the Supreme Court of the United States to review. 

The Competitive Enterprise Institute’s Center for Class Action Fairness has challenged the settlement agreement over various provisions…

CEI filed its petition for writ of certiorari, or review, with the Supreme Court on Sept. 19. A month later, on Oct. 19, attorneys general from 17 states filed an amicus brief with the high court in support of the institute’s petition.

“We’re grateful that 17 state attorneys general care enough about their consumers to ask the Supreme Court to intervene to stop abusive class-action practices and resolve the circuit split created by the Sixth Circuit,” said Ted Frank, director of CEI’s Center for Class Action Fairness.

“If class action attorneys can get paid millions even when they intentionally structure settlements to prevent over 90 percent of their clients from recovering any money, it creates perverse incentives for attorneys to ensure that class actions benefit only themselves.”

The Washington, D.C.-based public-interest law firm represents class members against unfair class action procedures and settlements. In this case, it seeks to protect the interests of the individuals who have come together to form the class action lawsuit.

“The petition presents an ideal vehicle for the Court to address the important question presented,” the attorneys general said of CEI’s petition. “The record is clear, the legal conclusions straightforward, and resolution of the circuit split will control as to the validity of the settlement.

Read the full article at Legal NewsLine.