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The European view of ridiculous US class-action suits is probably mostly thanks to cases where there's a huge number of people in the suit, the lawyer gets free
by distances 10y ago
The European view of ridiculous US class-action suits is probably mostly thanks to cases where there's a huge number of people in the suit, the lawyer gets free hands, and the result is $5 compensation and a movie ticket (upon written request accompanied by proof of purchase). The lawyer's cut is $3 million in legal fees, paid by the company to avoid a larger settlement.
This was probably an exaggeration, but that's the image one gets.
- kbenson 10y agoEven that serves a purpose. If you view the case as specifically to compensate people for the wrong, then it seems ridiculous, but if it's to make people feel like the company had to pay for their mistake and/or disincentivize the behavior in that and other companies, it serves a purpose. Do lawyers get too large a cut? Possibly, but remember that they are sometimes going up against large companies with deep pockets, and these cases may cost lots of money. Do we want to incentivize law firms to take these cases, even if they may not pay off? Yes. Do we want to incentivize them so much that they seek out claimants to create lawsuits for? Probably not, but again, if it keeps companies from trying to circumvent the law, it may not be entirely a bad thing. > The lawyer gets free hands ... The lawyer's cut is $3 million in legal fees, paid by the company to avoid a larger settlement AFAIK there has to be actual named defendants that represent the class, and they would decide on whether to accept a settlement. The lawyers can only advise, not decide. I'm by no means an expert though. Edit: Clarified what I was responding to in second part by including more context.
- slededit 10y agoI had that except my $0.50 was donated to charity (this was mandated as part of the settlement).