General Discussion
In reply to the discussion: Nutella to Pay $3 Million - Deceptive Ad [View all]rhett o rick
(55,981 posts)How does a consumer have to prove they qualify for a piece of the settlement? How much is the settlement per person?
A lot of these class action suits are scams. Let's say a company defrauds consumers to the tune of $100 million dollars. The class action lawyers and company lawyers are happy to settle for $20 million settlement. The suing lawyers get $10 million for doing a little research and negotiating from $100 million to $20 million. Not a bad pay day. The consumers may get a few dollars if they have the proof needed to qualify (some times very difficult). Or they may get a coupon for 5% off their next purchase. So of the $100 million dollars defrauded from the consumers, the corporation gets to keep 80% off the top, the lawyers get 10% for doing very little and the consumers get squat. Also, that money unclaimed by consumers (which I am guessing is a lot because of the trouble required for next to nothing), the corporations of course get to keep. Looks like a win-win if you exclude the consumers.