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So let me tell you how the class action would go down. A law firm would find a few impacted folks. They would then file for a class action covering, let's say,
by automated_toast 7y ago
So let me tell you how the class action would go down. A law firm would find a few impacted folks. They would then file for a class action covering, let's say, 100K people.
WF would then agree to pay like $50M. The lawyers would take at least half of that or $25M. The 'few impacted folks' the lawyers originally found would get between 50K and 100K each. The remainder would be disbursed to nonprofits because it would be too onerous to find all defendants.
WF would get this monkey off its back. And the actual impacted folks would get zip, zilch, nada.
- howard941 7y agoYou forgot to mention that the wrongful behavior would cease. That's the point of a class action: It provides an effective state attorney without tapping the public treasury.
- brewdad 7y agoNot if they made more money ripping people off than it cost them in the courts. Even if they didn't make a full $50 million in this scam, time value of money means they get to capture earnings on the scammed money for a decade before they have to finally pay a penalty. THEN they get to offset $50 million of current income to reduce their tax bill. I'm surprised more banks don't do this.