Thursday, May 1, 2014

Opening brief in Redman v. RadioShack

RadioShack committed the sin of printing credit-card receipts with expiration dates on them, which exposed it to possible liability of $100 a receipt ($1000 if willful), a bankrupting sum. Class counsel settled for coupons. Our clients objected that the settlement did not comply with CAFA's limitations on coupon settlements, and was structured so that class counsel's benefit would outstrip that of the class. As is typical in coupon settlements these days, the settling parties denied that the coupons were coupons. For some reason, the district court bought the argument, and awarded $1M in attorneys' fees while the 16-million-member class will receive 83 thousand coupons with a face-value of $10, give or take. We've appealed, and filed our opening brief April 16.

3 comments:

  1. Wouldn't the state of Il also support that "vouchers" for free items are coupons.

    See IL GA Administrative code discussing gift situations.
    http://www.ilga.gov/commission/jcar/admincode/086/086001300S21250R.html

    "presents a retailer with a coupon issued by the retailer that entitles the bearer to a free item"

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  2. Thanks, I was just wondering why, if a class action was brought stating claims under state law (I haven't read the complaint so don't know if it did or not), courts don't look to how the state would define coupons.

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