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A federal appeals court vacated a class-action lawsuit settlement that would have paid $14 million to the class plaintiffs' attorneys and roughly $18 million to charities designated by the parties but only $3 million to the plaintiffs, according to a Reuters article.
Remanding the case to a Pennsylvania federal district court to re-evaluate the fairness of the settlement and the attorneys' fees, the 3rd U.S. Circuit Court of Appeals in Philadelphia held that class-action settlement funds designated to charities "should generally represent a small percentage of total settlement funds," and that "the current distribution of settlement funds arguably overcompensates class counsel at the expense of the class."
Read the full article from Reuters here.
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