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All of the class actions where I've gotten back $5 or whatever have a document listing how the money is spent. Usually at least a third of it goes to the lawyer

All of the class actions where I've gotten back $5 or whatever have a document listing how the money is spent. Usually at least a third of it goes to the lawyers.

chadash 4y ago
The court awarded attorney fees of 20% of the overall (minimum) award in this case, which came to about $77 million. This is based off a $380.5 million minimum settlement fund (under certain conditions the fund can go up to $100-something million higher). source: https://www.equifaxbreachsettlement.com/admin/services/connectedapps.cms.extensions/1.0.0.0/927686a8-4491-4976-bc7b-83cccaa34de0_1033_EFX_Final_Approval_Order_(1.13.2020).pdf https://www.equifaxbreachsettlement.com/admin/services/conne...
midoridensha 4y ago
Right, so in such a case, if the lawyers decided to work for free and give ALL the money to the class members, you'd get back a whopping $7.50 instead of $5.00. Really, these cases are mostly a way for lawyers to make money, because on a person-by-person basis there's just not enough money to be made in pursuing legal action, but with millions of class members, the aggregate amount is pretty high, and 20 or 33% of that for the lawyers ends up being a nice paycheck.