“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.