PRACTITIONER BLOG

Read our analyses of developments in Impact Litigation and stay current on class action law

Class Actions, Class Action Settlememt, Class Action Mediation Teddy Basham-Witherington Class Actions, Class Action Settlememt, Class Action Mediation Teddy Basham-Witherington

Top 10 Tips For Your Next Class Action Settlement Mediation

Everyone who has negotiated a class action settlement has probably had some term he or she forgot to address at mediation, or in the MOU, that returned in drafting the “final” agreement as a big headache and put the deal at risk. I have. I have thought, at many class action mediations, “I wish I had a checklist so I would remember all the key terms.” Here it is...

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Class Actions, Class Attorneys Fees Teddy Basham-Witherington Class Actions, Class Attorneys Fees Teddy Basham-Witherington

Ninth Circuit Nixes "100% Natural" Wesson Oil Class Action Settlement; Finds Collusion On Attorney Fees

The court held that the class settlement—one it characterized as “reek[ing] of collusion at the expense of class members”—featured three “red flags” identified in Bluetooth. First, Plaintiffs’ counsel received a disproportionate share of the settlement—almost $7 million—while the class received less than $1 million. Further, the settlement provided for no direct notice to class members, reducing the redemption rate. Second, the parties agreed to a “clear sailing arrangement” in which ConAgra agreed not to challenge the agreed-upon fees for class counsel. This created the possibility that Defendant agreed to pay class counsel excessive fees in exchange for counsel accepting a lower amount for class members. Third, the agreement included a “kicker” or “reverter” clause in which ConAgra, not the class members, would receive a reversion of excess fees if the court reduced the agreed-upon attorney’s fees.

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