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"Multiple Indicia of Collusion" Doom Bluetooth Headset Class Settlement That Would Have Paid $800,000 to the Lawyers and Nothing to the Class
22 August 2011
Class counsel cannot receive a lodestar-based award that is out-of-proportion to the relief they obtain for the class in a proposed class settlement.
"Clear sailing" agreements, where class defendants give up their right to object to plaintiffs' fee requests, must be closely scrutinized by district courts reviewing proposed settlements under Rule 23(e).
In this case, and two others to come involving settlements that provide non-profit contributions rather than direct payments to class members, the Ninth Circuit will help establish the outer bounds of how parties can settle lower-value class actions.
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