LATEST LAWSUIT & SETTLEMENT NEWS

SETTLEMENTS CLOSING SOON

OPEN INVESTIGATIONS

A MESSAGE FROM SCOTT HARDY

Good morning, everyone! It's already the end of January. I see friends with their taxes already done and waiting for checks. Is that YOU? It's definitely not me. I'm HOPING to have mine done on time this year but it can be a challenge when you're a business owner. Lots of different tax implications to consider!

Did you get a big settlement payout last year? Enough that you're getting taxed for it? Make sure to include that in your tax planning. Most of our settlements won't be taxable but some are, so if you got a big check (usually $1,000+), then make sure you're reporting it to your tax preparer, otherwise you could get a nastygram from the IRS, and nobody wants that!

I received some positive feedback on my piece last week on the timeline of class actions, so I'll continue it here! So to rewind, the investigation ran, so the lawyers had the clients to file the class action. The class action was fought hard by the defendants but eventually a judge certified the case as a class action, and now settlement talks are proceeding between the plaintiffs and the defendants. These talks happen throughout the process (sometimes even before a case is actually filed) but they hit high gear once a case has been certified. Both parties come to an agreement and the case is settled (well, almost). 

Once a settlement agreement has been reached, it goes to the judge for review and approval. This can take 1-6 months (or more), depending on the court and judge. The judge will take a look at the settlement and determine if it reaches a fair outcome for the plaintiff (the affected class, potentially YOU!) The judge looks at the payout, total settlement fund, and even how much the attorneys are requesting as their fees. The judge wants to be certain that class members are going to receive proper relief (payment) and that injunctive relief is also present. Injunctive relief usually means "Company X agrees not to do X (whatever activity is alleged in the class action lawsuit) again."

Top Class Actions regularly sees settlement agreements get bounced BACK to plaintiff and defense counsel for modifications requested by the judge. They might say, "put more money in the settlement fund for class members!" Or they might say, "Boost your advertising for your settlement, list it on Top Class Actions" (ok, that hasn't happened yet, but I hope it will soon!) Or they might say, "GUARANTEE a certain minimum payment to class members" (no one wants to receive a check in the mail for $.23). The judge also approves the advertising plan, the timeline for claims, and lots of details to make sure the settlement is airtight between plaintiffs and defendants. We also have to reinforce the point that a settlement in no way admits guilt on the part of defendants. The defendant is simply saying, "I'd like to put this behind me and take care of the customers we love, rather than take it to trial." In general, defendants are NOT admitting to the alleged practice. It's easier to settle the case than take it to trial and leave it in the hands of a jury. From our research, cases taken to trial are won by the plaintiffs 60%+ of the time, and the damages awarded to the plaintiffs tend to be much, much higher, which is why defendants will settle the case the majority of the time.

So moving forward, after some back and forth with the judge presiding over the case, the settlement HAS BEEN APPROVED! Awesome!!! Now work hits high gear for the settlement administrator. The settlement administrator is the group that puts up the website to handle claims. This can take a couple of months depending on the complexity of the settlement. THEN! The website goes live! What happens NEXT???

Stay tuned! The next part is the juicy part for claimants!

On to more lawsuit and settlement updates!

TSA Class Action Alleges Life Savings Seized Without Cause

Supreme Court Won't Hear Facebook Privacy Class Action

OWYN Class Action Says Protein Drinks Don't Contain Vanilla

That's all for now! Make it a GREAT week!

Warm Regards,
Scott Hardy
President & CEO

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