5

I am interested in links to scholarly papers with actual comprehensive and preferably up-to-date statistics. I have done some search on Google Scholar but failed to find wide-ranging surveys (the ones I found were either very old (1980) or narrow, dealing with security class action suits (from 2002)).

  • 3
    I spent a few minutes searching on Westlaw without success. As you may know, one common benchmark is to allocate 25% of the fund as attorney fees. E.g. Hanlon v. Chrysler Corp., 150 F.3d 1011, 1029 (9th Cir. 1998). The other 75% can be significantly diluted, especially in smaller actions, by litigation expenses, class representative payouts, and distribution to public agencies. The lowest proposed settlement I've seen allocated 25% to the class members. – Christian Conkle Jun 3 '15 at 17:59
  • @ChristianConkle - could be an answer, I'd guess. – Deer Hunter Jun 18 '15 at 8:11
3

Although it's difficult to find exact numbers on class action settlements, there are some studies that suggest that the settlements are often of little value to plaintiffs.

A Mayer-Brown paper was only able to obtain data on six settlements - in these cases, claims rates were 0.000006%, 0.33%, 1.5%, 9.66% and 12%.

The same paper found that in one case of an $8 million settlement fund made available to 13,500 members, counsel received $5.5 million.

Appendices A and B of this paper provide further examples where class action settlements are either a negligible amount, or benefited a negligible number of class members.

Although the scope of this paper is somewhat narrow, its findings suggest that it is representative of many class actions.

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.