Bloomberg Law’s® Class Action News allows you to track the most important class-action and multiparty litigation across the nation, and across all subjects with particular focus on procedural...
By Perry Cooper
A deal resolving claims that online consumers were automatically enrolled in a rewards program will stand, but the $8.7 million fee for class counsel must be recalculated, the Ninth Circuit held Oct. 3.
Attorneys’ fees in coupon settlements must be based on the redemption rate of the coupons, not their full face value, Judge Michelle T. Friedland wrote for the U.S. Court of Appeals for the Ninth Circuit.
The district court got the “multi-million dollar question” wrong when it found that the defendant’s $20 credits aren’t coupons under the Class Action Fairness Act, the appeals court said.
The suit alleged that defendants Provide Commerce Inc. and Regent Group Inc. unlawfully enrolled online consumers in a rewards program and charged them a monthly fee when they accepted a $15 “thank you” gift.
The settlement provided $12.5 million in cash plus $20 merchandise credits sent automatically to class members even if they don’t submit a claim. If all class members use the $20, the total settlement would be worth $38 million.
The district court improperly based the fee award on the $38 million figure, the appeals court said, accepting the argument of objector Brian Perryman.
But the court disagreed with Perryman’s other objections to the deal. It affirmed the settlement but ordered the lower court to recalculate the attorneys’ fees.
Judges N. Randy Smith and Barbara M.G. Lynn, sitting by designation from the U.S. District Court for the Northern District of Texas, joined the opinion.
Steckler Law Group LLP, Andrus Anderson LLP, and others represented the class.
The Competitive Enterprise Institute’s Center for Class Action Fairness represented the objector.
Cooley LLP represented Provide Commerce. Myron M. Cherry & Associates in Chicago represented Regent Group.
The case is In re Easysaver Rewards Litig., 2018 BL 363698, 9th Cir., No. 16-56307, 10/3/18.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)