Examples of Unfair Class Action Lawsuit Settlements

You and the members of your class action lawsuit have finally received a settlement offer. At this point, there are many pitfalls you can face in accepting the terms of the settlement, including inappropriate compensation, questionable release terms and unreasonable Massachusetts class action attorney fees.

A fair class action settlement should fairly and adequately compensate class members by providing an award equal to the damages incurred and/or offering a repair that will prevent future damages.

In some cases, there may be questionable release terms to be signed before coming to a fair class action settlement. These terms often mask more serious issues and prevent the class from bringing further suits.

For example, say that a bank has a class action lawsuit filed against them for improper debit card charges resulting in overdraft fees. They require class members to sign a waiver saying that the suit covers "all claims related to overdraft fees," knowing that probing into the debit card charges may reveal illegal rate hikes that would bring a more critical case to light.

In addition, the attorney fees involved in a case should be appropriate to the size and scope of the case. Your Massachusetts class action attorney should be upfront about their fees and never seek payment until after a settlement is reached. 

A Massachusetts class action attorney should also be careful of the amount they demand. This is because the class may be responsible for paying these fees without receiving any monetary compensation of their own.

For more information about fair class action settlements, read our article, Determining a Fair Settlement in a Class Action Lawsuit.  If you feel the need for professional consultation on your class action lawsuit settlement, contact the Massachusetts class action attorneys at Phillips & Garcia today for a FREE consultation - (877) 892-5620.