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August 27, 2015

Business Insider Laments American ‘Consumer Lawsuits’; Cites ILR Research Report

“Big consumer lawsuits are frequently a big win for lawyers but don’t do much for consumers or anybody else,” writes Business Insider, pointing to a recent class action settlement over Southwest Airlines drink coupons.

In the Southwest Airlines settlement, attorneys “were granted $1.65 million,” the two lead plaintiffs got $15,000, and “every other customer just got a new coupon.”

The story cites ILR’s 2013 study, “Do Class Actions Benefit Class Members?“, which “found that consumers who participate in class actions recover little or nothing as a result of the litigation … in more than half of proposed class actions filed, the class members actually receive nothing.”

The Wall Street Journal wrote a “scathing editorial” on the ILR study, noting, “lawyers profit handsomely from these agreements that give them a cut of the winnings off the top, but the odds for regular Joe Plaintiff aren’t good.”

Read the full story here.

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