class actions settlements

If you ever bought a Groupon might be getting an email this week about the class - action involving the expiry date on the company's daily deals.

Groupon has settled the case and paid $ 8500000 Cash proposed to do it - but, as with many costume class - action, a good chunk of the money will go to lawyers. Customers are likely to be the only penny.

Seventeen Groupon subscribers each filed individual lawsuits in recent years, on the expiration date on a Groupon deal and how the company has been sold or promoted this offer.

The suit alleges, among other things, that the restrictions imposed Groupon deal declared illegal - like " must use gift certificate in one visit " - that violate a variety of gift - card rules. For example, federal law makes it illegal to sell gift cards that expire in less than five years.

This 17 lawsuits have been rolled into one and transferred to California district court, where a judge certified the application as a class action last year. That brings the whole Groupon customer base in the process.

Groupon has solved the case last month, without admitting fault or bad. As part of the agreement, Groupon merchants are exempt from any liability in connection with the allegations.

Completion : On the client side, the class actions settlements includes anyone in the U.S. who bought a Groupon deal or accept a gift from November 1, 2008 to December 1, 2011.

But what the customer is actually going to get fixed pretty murky. The fundamental requirement of the village seems to reflect almost exactly the current policy on Groupon coupon expires.

Groupons have two separate values ​​: the actual amount paid (like $ 20 for $ 50 worth of vouchers promising spa services at the local level) and the amount of promotion (which is $ 50).

While the number of promotional carry an expiration date, the policy is that expired Groupons Groupon may be redeemed at any time on any time limit for the amount to be paid. If the $ 50 spa voucher that you paid $ 20 for expired last month, you can still redeem it at the spa service valued at $ 20.

Completion provide people who apply for " completion voucher " that can be redeemed with the merchant product " to the purchase price you pay. "

How is it different from what Groupon already offers ? Neither party is saying.

A Groupon spokesman said the company is " nothing to add beyond what 's in the notification " that some customers have received. Robbins Geller Rudman & Dowd Law Firm, which is representing the defendants, did not return a request for comment.

Completion of the transaction has an easy twist : If the merchant will not honor the voucher settlement, customers can apply both to fund the completion and be eligible for a refund check for what they paid plus 20 % of business promotion. Further details about the process are available at grouponvouchersettlement.com.

Also as part of the agreement for the next three years Groupon has agreed not to sell more than 10 % of daily transactions with an expiry date of less than 30 days. Groupon also agreed to change the language in advertising and on its website to make the restrictions clear.

Groupon sent a letter to retailers this week advising them of their settlement warning and explain that it will not change policy on Groupon deals expire. A copy of the letter to the recipient gives CNNMoney.

" All you are required to do is to honor the voucher for the cash value paid, not the amount of promotion that has ended, " wrote Groupon. " If you 've worked with us recently, this should not be surprising that all of our vouchers can be used for its cash value in eternity. "

Expect lower pay : In accordance with the provisions of the proposed settlement, Groupon will pay $ 8.5 million in cash, but a good chunk of the money will go to lawyers. Customers can take home just pennies.

Brought legal team asked the court to award attorney fee " of up to 25 % of the settlement cash, totaling more than $ 2.1 million plus approximately $ 75,000 allocated for donations to civic organizations or non - profit.

Applicants plumbcostum of - 17 Groupon customers who brought the complaint - would receive a proposal for $ 500 each. The remaining money will be divided between those who complete the application form and put in for their share of the settlement.

That leaves about $ 6.3 million or more will be divided into classes which can include millions of people. Groupon has nearly 34 million active subscribers - people who bought at least one business in the past 12 months - from December 31. A spokesman refused to come out how many customers based in the United States.

Even if half of active users Groupon is to submit an application, each applicant will receive a payment of about 37 cents gain.

Groupon said in his letter that traders expect only 2 % of the customers to meet the requirements and submit an application.

Even if this is the case, that the 660,000 applicants will receive a payment of approximately $ 9.50 each.
Groupon customers have until July 6 to submit an application if they wish to be included in the settlement. The judge handling the case is scheduled for trial in a court in California on July 20 propuşide settlement terms, after which it will decide whether to uphold or reject the deal. class actions settlements

In a presentation Productivity Commission , the Australian Institute of company directors , says that increasingly , major lawsuits against companies are funded by professional litigation funders subject to " little or no regulation" .

The group says that many class actions settlements are driven by lawyers and litigation funders , leaving companies face significant costs and potential disruption .

They claimed defending successful companies and management costs enough to pay have assets collective action settlement and litigation funders yoke of capital adequacy regulations funded company building the law firm to prevent the measures called for are.

The requests come as the federal Attorney -General George Brandis has criticized the involvement of firms in companies that finance class action settlements, saying it was concerned about the " wildcat and opportunistic " collective action settlements.

AICD says " excessive costs " and distraction company claims "unfounded " should not be underestimated and economic considerations " that allows donors to initiate litigation forcing settlement of litigation to profit should not be ignored " .

Commercial reality these irritating Board of managers and employees to focus on core business activities, as you may feel it is prudent to establish this type of case, The presentation says.

The cost and time involved in defending these actions is vast and there are still many unresolved areas of Australian law class action settlements, particularly in relation to actions initiated by shareholders, which adds to the uncertainty for companies.

" The beginning of a large -scale shareholder class action settlements may put pressure on the share price target entity . "

Because of the size and scale class action litigation , company executives say , cases may hit tax revenues by hitting company profits .

Arguments corporate executives "are shared by an advocacy group linked to the U.S. Chamber of Commerce , the largest business federation in the world.

U.S. Chamber Institute for Legal Reform Productivity Commission said that Australia has the potential to be "jurisdiction of choice for plaintiffs , lawyers and financiers that promote collective action. This uncontrolled acceleration issue has implications for the civil justice system Australia , the cost of do business and reputation worldwide as an investment destination . "

In a paper that you put in front of the PC , the institute warns that an increase in settlements funded class actions and processes increased the cost of doing business in Australia and it is " a trend that will continue if current situation remains unchanged . "

While large class action law firm, Maurice Blackburn and like Slater and Gordon have yet to comment on the investigation of 15 months , the Productivity Commission on Access to Justice , which they previously rejected concerns about the risk litigation facing growing Australian companies .

Class action law firms argued that class action litigation funders supported by results from recovery for victims of mistakes and that there was a wave of litigation or unmeritorious claims because there is a loser pays rule for costs in civil cases.

Law firm King & Wood Mallesons recently estimated that securities class action settlements in 2012 totaled $ 480 million , after the settlement record of $ 200 million in Centro class actions settlements.

This is almost half of all such settlements in the past 20 years , the Federal Court regime collective action began .

Productivity Commission raised the prospect of changing light -touch regulation Labour litigation funders .

class actions settlements

Securities class actions settlements reached a minimum 14 years last year in terms of the number of cases resolved , according to a new report from Cornerstone Research . However, the total dollars paid in those settlements more than double the previous year . In 2012 , the total amount paid to settle the securities class action was 2,201 million , compared with only 1.405 million dollars in 2011.

Settlement amounts paid last year are comparable to those reported from 1996 through 2011 , when viewed in terms of the minimum , average, average and maximum . In 2012 , the minimum payment was $ 0.5 million , $ 10.2 million median , average and maximum $ 822,600,000 $ 54,700,000 . Over the previous fifteen years since 1996 , the average for each is : A minimum of $ 0.1 million , an average of $ 8.3 million , an average of $ 55,200,000 and a maximum of 8325.1 million.

Settlement values ​​for the previous year were significantly affected by mega settlements , defined as more than $ 100 million . These settlements accounted for nearly 75 % of the total dollar settlement in 2012. That compares with 41 % in 2011 , 60% in 2010, 75 % in 2009 and 52 % in 2009. Indeed , more than half of class actions settlements of securities from passing the Reform Act was less than 10 million dollars. Which contrasts with 2012 where more than half the villages were under $ 10 million . This may suggest a change in size typical case, according to the Cornerstone . These higher settlement values ​​may also reflect the fact that less than 60 % of the settlements were funded entirely by D & O insurance , compared to almost 80 % in the previous year .

An analysis of the time the settlement suggests that in 2012 , the number of years between the filing of the complaint and low resolution . In 2012 , 22.6 % of cases resolved within two years , compared to 13.4 % between 2007 and 2011. While these percentages reversed within 2-3 years , with 17 % in 2012 and 30.6% for the previous four years , the number moves back again in the time frame of 3-4 years 26.3% in 2012 compared to 19.3% for 2011 compared to 2007 .

Number of cases settled , involving appropriate action by the SEC increased last year compared to 2011 . In 2012 there were 11 securities class actions settled with the SEC implementing parallel action , compared with only five in the previous year . Last year's number is, however , well below those of previous years . For example , in 2010 settled 21 securities class actions had a parallel SEC action while in 2009 and 2008 were 22 in each year, and 31 in 2007 market crisis began manifest. In part this can be explained by the mixture of charges in cases . In 2012 , about 60 % of the shares determined by class of securities settlement cases involving alleged violations of GAAP while the number of actions brought by the SEC accounting fraud in recent years has decreased significantly.

Two other points about places from last year are noted. First, because the passage of Reform Act institutional investors have played an increasingly important role . Since 2006, institutional investors served as lead plaintiff in more than half of the cases . This trend continued last year with public pension funds serving as the principal applicant in approximately 49 % of cases resolved . Typically, settlement amounts are larger when an institutional investor serves as lead plaintiff .

Finally , last year, more than 50 % of securities class actions set were accompanied by a derivative suit . This represents a significant increase from the average post- Reform Act of around 30% per year. Settlements in class actions accompanied by derivative suits tend to be significantly higher , depending on the Cornerstone , even when settlements are not at the same time .