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Easysaver Coupon Settlement Deal Affirmed, Fees Toppled

Citations

Bloomberg News cited CEI on CCAF case.

A deal resolving claims that online consumers were automatically enrolled in a rewards program will stand, but the $8.7 million fee for class counsel must be recalculated, the Ninth Circuit held Oct. 3.

Attorneys’ fees in coupon settlements must be based on the redemption rate of the coupons, not their full face value, Judge Michelle T. Friedland wrote for the U.S. Court of Appeals for the Ninth Circuit.

The district court got the “multi-million dollar question” wrong when it found that the defendant’s $20 credits aren’t coupons under the Class Action Fairness Act, the appeals court said.

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The Competitive Enterprise Institute’s Center for Class Action Fairness represented the objector.

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