Wednesday, September 23, 2009

Class Action Lawsuit Settled - $0 for the Plaintiffs and $10M for the Lawyers

How can the plaintiffs end up with zero money in a class action lawsuit?
Costco, along with other fuel retailers, has been sued over the way it measures gallons of fuel in some states. The putative class plaintiffs have settled the case--for zero dollars for the class, and ten million dollars for the attorneys. You are a member of the Settlement Class and are affected by the proposed settlement if you purchased gasoline from Costco at a temperature above 60 degrees, between January 1, 2001, and April 22, 2009, and reside in the following states: Alabama, Arizona, Arkansas, California, Delaware, Florida, Georgia, Indiana, Kansas, Kentucky, Louisiana, Maryland, Mississippi, Missouri, Nevada, New Jersey, New Mexico, North Carolina, Oklahoma, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, the District of Columbia, or Guam.

Something is wrong with our legal system when the lawyers get all the money. Isn't this a legal form of extortion?

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