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Class Action Settlement Reversed.

August 5, 2014 by Leave a Comment

Class Action 3 Plaintiffs brought an action against defendants for advertising a bracelet as a revolutionary bracelet that uses the body’s “biofield” to improve strength and wellness. Alleging the advertising claims were false, plaintiffs sought injunctive relief and damages on behalf of all persons in the United States who purchased a bracelet. Defendants agreed to settle the lawsuit, and the trial court approved a settlement agreement in which defendants would create a fund to reimburse class action members for the purchase cost of the bracelet. Pursuant to the agreement, the trial court awarded $215,000 in attorney fees. Appellant, a class member, objected to the settlement, alleging the trial court abused its discretion in awarding attorney fees and the notice afforded class action members violated due process. The appellate court found no error in the award of fees, but reversed with regard to the notice issue, noting that if a class member had an objection to the settlement, the class member was required to come to court and that “[r]equiring any objector to attend the final approval hearing does not offer a meaningful opportunity to be heard, and therefore violates class members’ due process rights.” (Litwin v. iRenew Bio Energy Solutions, LLC (Cal. App. Second, Div. 1; May 28, 2014) (As mod. May 29, 2014) 226 Cal.App.4th 877, [172 Cal.Rptr.3d 328].)

Filed Under: Appellate Law News, Attorney's Fees News, Class Action Law News, Legal News, Procedural Law News, Settlement Law News

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