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9th Circuit Dissenters Oppose Facebook Settlement With No Money For Class Members

Publication Date: 
February 27, 2013
Source: 
Daily Journal
Author: 
John Roemer

Professor Deborah R. Hensler spoke with the Daily Journal's John Roemer about the 9th U.S. Circuit Court of Appeals decision not to review the settlement en banc in McCall v. Facebook Inc. and why she believes the Judge in the case made a "compelling argument." 

Angry Facebook users who sued over the site's now-defunct Beacon feature got a raw deal in a $9.5 million class action settlement, dissenters at the 9th U.S. Circuit Court of Appeals complained Tuesday.

The court announced that its judges voted not to review the settlement en banc, letting stand the deal a divided panel approved 2-1 in September. McCall v. Facebook Inc., 2013 DJDAR 2488.

...

Deborah R. Hensler, a Stanford Law School professor who studies complex litigation, said that although she seldom agrees with 9th Circuit conservatives, "Judge Smith makes a compelling argument that this settlement is poorly designed."

She added that if a judicial trend develops holding that cy pres is a bad thing, "I would not agree. They have an appropriate place in class actions when it is impractical to deliver direct compensation to class members."