Emory University Study Finds Lawyers Benefit Most From No-Injury Class Actions
Emory University School of Law professor Joanna Shepherd released a report analyzing 432 no-injury class actions resolved between 2005-15. Shepherd found that “[class members] typically receive less than 9 percent of the total [award]. In comparison, class counsel receives an average of 37.9 percent of available funds – over four times the funds distributed to the class.”
Given the explosion of no-injury class action cases in recent years, Shepherd pointed out that these lawsuits only fulfill their purpose if class members are actually compensated. “A result in which plaintiffs recover less than 10 percent of the award, with the rest going to lawyers or unrelated groups, clearly does not achieve the compensatory goals of class actions.”
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