On Monday, the Competitive Enterprise Institute (CEI) filed a petition for rehearing in In Re: Transpacific Passenger Air Transportation Antitrust Litigation. This is a class action case about airline companies price-fixing transpacific flights. CEI previously argued that the settlement was unfair to class members because it diluted the recovery of class members who have a materially stronger claim for damages.
CEI Center for Class Action Fairness Director Ted Frank said, “The illegal class-certification shortcuts taken by class counsel and the district court cost legitimately claiming class members at least $11 million, and perhaps more. We’re asking the Ninth Circuit to rehear the case to correctly apply Supreme Court and Ninth Circuit precedent on these issues.”
ABOUT: The Competitive Enterprise Institute’s Center for Class Action Fairness represents class members against unfair class action procedures and settlements. Originally founded by Ted Frank in 2009, the center has won millions of dollars for consumers and shareholders and won landmark precedents that safeguard consumers, investors, courts, and the general public.
Unfair settlements generally serve self-interested lawyers and third parties at the expense of absent class members, the group of people whose rights are traded away to settle a class action. Lawyers have an interest in their fees, defendants have an interest in cheaply disposing of a lawsuit, and the class’s interests can take a back seat in the process. CEI seeks to solve these problems by representing such class members pro bono and presenting judges with the other side of the argument.