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Attorney fees clipped, class awards tripled under new deal to end Southwest drink voucher class action

Tuesday, February 21, 2017 11:21
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Cook County Record discusses, with Melissa Holyoak, CEI’s Center for Class Action Fairness’s objection of a Southwest settlement. 

At that point, the Washington, D.C.-based Competitive Enterprise Institute’s Center for Class Action Fairness joined class members in objecting to the fees and appealing the ruling, saying they believed the fee award was unfair. The judge in the case had upheld the award, noting it fell well below the $3 million that Southwest had set as a limit to what they would pay in attorney fees.

The appeals court remanded the case back to District Court Judge Matthew Kennelly, who deemed the fees to be appropriate.

Center for Class Action Fairness attorney Melissa Holyoak said the Center sought to redirect some of those attorney fees to the class members. In June 2016 the district court partially denied the Center’s request and another appeal was filed. Following that appeal, Southwest and the plaintiffs agreed to rework the settlement deal to end the litigation and appeals.

“The settlement was unfair because the attorneys’ fees award was grossly disproportionate to the relief actually delivered to the class, Holyoak said. “Before the Center for Class Action Fairness objected, the plaintiffs’ attorneys were to receive $2.11 million, while the class members would have received $412,815 in coupons.”

Holyoak told the Cook County Record the judge had upheld the fee awards, even though he “never knew how much the class was actually receiving.”

“It wasn’t until on appeal that plaintiffs revealed the number of claims that were submitted,” Holyoak said.

Two appeals later, Holyoak defends the hard-fought case.

Under the original settlement, she said, class members would have received $412,815 in coupons – 137,605 coupons with $3 market value – compared to attorneys’ fees of $2.11 million.

Under the new settlement, class members will receive $1.23 million in coupons and attorneys’ fees were reduced to $1.88 million.

Read the full article at Cook County Record

Thursday, February 16, 2017
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Melissa A. Holyoak
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