September 30, 2020

Law Firm Defends No-Money Navient Settlement While Also Collecting $500K

The law firms that negotiated a settlement of student-loan claims against Navient that pays class members nothing but yields lawyers $500,000 in fees defended the deal as providing non-monetary benefits for borrowers according to a report in Legal Newsline.

Lawyers at Selendy & Gay and Phillips, Richard & Rind, touted the settlement as “a leap forward for student borrowers” because it would require certain “business enhancements,” making it easier for borrowers to learn about government loan forgiveness programs. As part of the settlement, Navient would also pay $1.75 million in what lawyers call cy pres relief to establish an independent non-profit to provide education and counseling services.

The settlement drew more than 100 objections, including one which called the contribution to a completely unrelated charity instead of paying class members directly “the worst form of cy pres relief.” 

ILR's Cause for Action Podcast Podcasts Episode 16: U.S. Chamber Litigation Center: SCOTUS Term Recap Other Issues News Special Prosecutor Argues Steve Donziger’s Bid For New Trial Doesn’t Address Guilt Other Issues News NY Civil Justice Reform Group Warns NY Congressional Delegation Of Risks Associated With Antitrust Enforcement Venue Act Other Issues ILR's Cause for Action Podcast Podcasts EPISODE 15: Diversity In Law Other Issues News Steven Donziger Found Guilty Of Contempt In Ecuador Saga Other Issues
We Use Cookies to Make your Experience Better

What do we use cookies for?

We use cookies and similar technologies to recognize your repeat visits and preferences, as well as to measure the effectiveness of campaigns and analyze traffic. To learn more about cookies, including how to disable them, view our Cookie Policy. By clicking "I Accept" or "X" on this banner, or using our site, you consent to the use of cookies unless you have disabled them.