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Class Action Suit Goodies Await Tech Users

jfruh writes "Did you buy an Acer laptop with Vista and less than 1 GB of RAM? The company has a thumb drive it would like to send you. Did you get an unwanted text from Papa John's? The company would like to make it up with you with $50 worth of free pizza. These and other little rewards are available as a result of class action lawsuits that have wound their ways through the court systems and now, years later, are paying off for very large groups of tech users." I wonder how many USB drives the lawyers took as their share.

19 of 117 comments (clear)

  1. Paying off for whom? by SirGarlon · · Score: 5, Insightful

    It sounds more like these settlements are paying off for the defendants. Papa John's pulled off an especially neat trick there, getting the court to accept pizza the customers don't want in lieu of statutory damages.

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    [Sir Garlon] is the marvellest knight that is now living, for he destroyeth many good knights, for he goeth invisible.
    1. Re:Paying off for whom? by CastrTroy · · Score: 5, Insightful

      Them and the lawyers who brought the case to the court. In most of these class action lawsuits, the lawyers "fighting for the little guy" end up getting huge amounts of money. Sure they have to pay their own bills, but it often goes a lot further than that. There shouldn't be any options to give out free stuff in these class action suits. The payouts should be cash only. $50 worth of pizza doesn't cost Poppa John's $50.

      --

      Anthropic principle: We see the universe the way it is because if it were different we would not be here to see it.
    2. Re:Paying off for whom? by h4rr4r · · Score: 3, Informative

      Good, the lawyers did the work.

      The whole point of class actions is to make small individual claims able to be handled by the courts. No one is going to sue Papa Johns for $50. Papa Johns got a nice $25 per customer punishment.

  2. Reminder by Anonymous Coward · · Score: 5, Interesting

    These aren't the results of judgments, they're the rewards for settlements. So if you ever wondered why the end result is so awful it's because the actual money goes to the lawyers while the people for which the lawsuit was intended to provide justice get cheap plastic kazoos. This is supposed to be okay, though, because "class action lawsuits are intended to punish companies, not restore damages." The best part is that by accepting your cheap plastic kazoo you're also signing away any other legal recourse you may have had.

    1. Re:Reminder by quacking+duck · · Score: 2

      The best part is that by accepting your cheap plastic kazoo you're also signing away any other legal recourse you may have had.

      Not quite. The best part (if my notice of the Sony PSN class action settlement is typical) is that by not explicitly excluding yourself from the settlement (i.e. even if you take no action to claim the cheap plastic kazoo), you're giving up any further legal recourse you may have.

    2. Re:Reminder by fast+turtle · · Score: 4, Interesting

      it's called small claims court and the chance of winning is far better they you'd think. I'll take $250 dollars - depends on the state - EG California now allows $2500 for spam and such per incident. Now if we'd all simply take advantage of these laws and start collecting from the most egregarious offenders.

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    3. Re:Reminder by Bob+the+Super+Hamste · · Score: 4, Interesting

      I had a run in with small claims years ago just after I graduated from college. The insurance company didn't want to pay anywhere near the fair market value of a vehicle that was totaled as determined by various objective not involved 3rd parties (NADA, KBB, and an independent appraisal). I paid my $35 filing fee which you could as part of your requested damages. The car sat in storage with the insurance company for 6 months as they stone walled me and I went to court. I went in with a stack of paper to prove my point that included:
      The KBB value of the car
      The NADA value of the car
      The independent appraisers valuation of the car
      Examples of very similar cars and their asking price with pictures they were all in really bad condition and/or had really high mileages even by my standards with one having 750,000+ miles on it
      Examples of the same vehicle in the price range the insurance company was claiming my vehicle was worth
      The data and method the insurance company used to come up with a valuation

      I presented my stuff and picked apart their valuation making sure to point out where they had deducted things multiple times. The judge then asked the insurance company to justify their valuation in which they presented their method and data that I had presented. The judge looked at the insurance company lawyer and told them they should have just settled as what I was asking was perfectly reasonable. The whole court proceeding took about half an hour. After that the insurance company still stalled on getting me my money and I had to threaten to get a lien against their assets as I had a court order to have my money by a certain date which had passed and I was now legally allowed to do so and if I didn't have my check by the end of the day I would be doing that. About an hour later my check was hand delivered. In the end they ended up paying the fair market value of the car, storage for 6 months, what ever it cost to have someone go to court, what ever it cost to prepare for court, and what ever it cost to have someone hand deliver a check to me when it should have only cost them the fair market value of the vehicle.

      More people need to put the screws to companies like this and things would get better quick because what ever it costs you in your time it will cost the company more. If a kid just out of college can force a big insurance company to pony up just about anyone can.

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      Time to offend someone
  3. eMachines settlement by ThatsLoseNotLoose · · Score: 3, Informative

    If you purchased an eMachines computer with a floppy drive way back in the late 90s, you can get either $62.50 in cash, or $365 worth of Gateway or Acer stuff from their refurb outlet.

    http://www.emachinesfloppydisksettlement.com/CaseInfo.aspx?pas=EMS

    I'd forgotten I ever bought an eMachine until I got the notice last month.

  4. Missing the point by KingSkippus · · Score: 5, Insightful

    The point of a class action lawsuit isn't, unfortunately, to compensate the members of the class. The point of a class action lawsuit is that there are too many people who suffered minor damages to really be able to logistically handle that.

    The primary point of a class action lawsuit isn't to "fight for the little guy," it is to punish companies that do wrong. If lawyers end up making $2 billion off a lawsuit, well, that's $2 billion out of the company's coffers. And before you go spouting off about how ultimately they pass that cost on to customers, maybe they do, but if so, that puts them at a disadvantage compared to other companies. Or put another way, if Domino's is giving their customers good quality pizza while Papa John's is skimping because they are trying to pass a $2 billion lawsuit judgment on to their customers, they'll lose market share. But I digress...

    Anyway, I don't necessarily agree that the lawyers should make so much off of a class action lawsuit, although they really should make a lot, since they're handling the details of compensation which costs a lot more than most people think. What I'd like to see is some kind of public fund set up for money like this to go into, such as to build parks or something, so that the end effect of punishing the companies is maintained but the incredible amount of time, effort, and money that goes towards mailing a few people checks for a buck or two isn't wasted. At least that way, you also avoid the problem that class action payouts usually aren't that high since most eligible claimants won't bother to jump through the hoops to get their judgment.

    1. Re:Missing the point by pepty · · Score: 5, Insightful

      The primary point of a class action lawsuit isn't to "fight for the little guy," it is to punish companies that do wrong. If lawyers end up making $2 billion off a lawsuit, well, that's $2 billion out of the company's coffers.

      No.

      Punitive damages do that. Compensatory damages are intended to make the plaintiffs "whole". The jury or judge will make it clear which damages are intended to do what. Remember, class actions aren't just for pizzas, they're also for injuries and death caused by negligence.

      Either way, I think there should be parity in awards to the attorneys and the plaintiffs in a class action suit, both in time and monetary value. If the class is paid in coupons, the attorneys are paid in coupons.

      The attorneys are free to sell the coupons for cash.

      If the plaintiffs are paid cash over a period of time - say a trust has been established that pays medical bills- the attorneys should be paid incrementally as the trust is used up. The attorneys certainly have the option to sell that revenue stream for an immediate payment - they'll probably get 50-70 cents on the dollar.

      The point is that class action attorneys should have their interests tightly aligned with those of the class, otherwise they will cut deals that benefit only themselves. The best and simplest way to do that is to reward them as a percentage of the net present value of the market value (not face value) of the plaintiff's share of the award.

    2. Re:Missing the point by pepty · · Score: 2

      When you join the class, you are agreeing to the lawyers' negotiated settlement.

      It's the class's negotiated settlement, not the lawyers'. The suit is started by the lead plaintiffs, who hire the lawyers. It is the lead plaintiffs that agree to any negotiated settlement, not the lawyers. The whole point of the action is to satisfy the interest of the class, not the lawyers. I realize that these principles are often abused, but those are the principles nonetheless. Lawyers who get too careless with them get jail time: just ask Bill Lerach.

  5. Re:How many thumb drives did the lawyers get? by 2gravey · · Score: 5, Funny

    The sad truth of it is that the poor lawyers probably did not get any thumb drives at all and had to make due with nothing more than millions of dollars for their trouble.

  6. You were sleeping by c0d3g33k · · Score: 2

    When is SlashDot going to post the Verizon story?

    I know a lot of us have heard or seen the "NSA box" in our closets, but now it's official:
    http://www.guardian.co.uk/world/2013/jun/06/nsa-phone-records-verizon-court-order

    Off-topic, I know, but this one is boring. (Everyone already knows class action suits screw consumers.)

    You must have been asleep and missed it. This was the first story posted today, 27 minutes after midnight:

    Verizon Ordered To Provide All Customer Data To NSA
    Posted by samzenpus on 12:27 AM June 6th, 2013

    Go to the front page and scroll down a bit, difficult as that apparently is. You should see the story you were hoping for.

  7. Re:How many thumb drives did the lawyers get? by h4rr4r · · Score: 2

    Which is a feature not a bug.

    They did the work, and they took the risk. They also made it possible for a company to be punished without requiring people to spend a day at a courthouse for a minor damage. If class actions were not available then any company could rip off its customers so long as it kept that theft below the amount that would motivate most folks to go to court.

  8. Re:not to be a buzzkill but this isnt free. by Anonymous Coward · · Score: 5, Insightful

    Product paid for by future cuts = free product now and none of my business later when the company cuts quality or raises prices to compensate.

    A free pizza from Papa Johns today that will result in higher prices tomorrow means I buy Little Caesars tomorrow.
    A "windfall" ACER USB drive in my hand today that raises Acer prices across means I buy a Dell PC instead.

    It's called the free market. You're free to charge whatever you want, and I'm free to buy from someone else.

  9. Re:not to be a buzzkill but this isnt free. by Antipater · · Score: 4, Insightful

    If the penalty is reflected in the price of next year's line of Acer laptops, then more people will buy from Toshiba instead. "Passing it on to the consumers" only works when the entire market is passing it on, not just one company.

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  10. Re:When is SlashDot going to post the Verizon stor by Chris+Mattern · · Score: 2

    When? They published it over eight hours ago, Swifty.

  11. Re:not to be a buzzkill but this isnt free. by squiggleslash · · Score: 2

    $50 in free pizza at Papa Johns might be used by President John Schnatter as damage control for his recent plan to raise the price of his food based on the healthcare reform act.

    FWIW, to give him credit, he was quoted out of context over his supposed "attack" on HCR, which did include positive commentary on, for example, the fact it leveled the playing field and meant he could provide insurance to his employees without that giving his competitors an advantage over his company.

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    You are not alone. This is not normal. None of this is normal.
  12. Do the flash drives have text on them saying... by jkflying · · Score: 3, Funny

    "I won a class action lawsuit against Acer and all I got was this stupid flash drive."

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