Podcast appearances and mentions of Frank V Gaos

On March 20, 2019, the Supreme Court decided Frank v. Gaos, a case raising the question whether, or under what circumstances, a cy pres award that provides no direct relief to class members fulfills the Federal Rules of Civil Procedure 23(e) requirement that a class action settlement be "fair, reasonable, and adequate."In a class-action suit with three named plaintiffs, Google was accused of violating the Stored Communications Act by sharing user search terms and other information with the server hosting whatever webpage that user clicked to via Google Search results. A settlement was reached that would require Google to include certain disclosures on some of its webpages and would distribute more than $5 million to cy pres recipients, more than $2 million to class counsel, and no money to absent class members. The district court approved the settlement over the objections of several class members, and the U.S. Court of Appeals for the Ninth Circuit affirmed. The Supreme Court then granted certiorari to address petitioners’ challenge that this cy pres settlement did not satisfy the Rule 23(e) requirement that class action settlements be “fair, reasonable, and adequate,” but did not ultimately reach the merits of that question.In a per curiam opinion, the Court vacated the judgment of the Ninth Circuit and remanded the case for further proceedings to determine whether the class action plaintiffs even had standing to bring their class action in light of the Supreme Court’s 2016 decision in Spokeo v. Robins. That case held that “Article III standing requires a concrete injury even in the context of a statutory violation.” Here, the Court indicated, the lower courts needed to resolve “whether any named plaintiff has alleged [Stored Communications Act] violations that are sufficiently concrete and particularized to support standing.” If not, the lack of standing would deprive the federal courts of subject matter jurisdiction in this case. Justice Thomas dissented. To discuss the case, we have Theodore "Ted" Frank, Director of Litigation and Senior Attorney, Hamilton Lincoln Law Institute - and one of the named petitioners in this case.

On March 20, 2019, the Supreme Court decided Frank v. Gaos, a case raising the question whether, or under what circumstances, a cy pres award that provides no direct relief to class members fulfills the Federal Rules of Civil Procedure 23(e) requirement that a class action settlement be "fair, reasonable, and adequate."In a class-action suit with three named plaintiffs, Google was accused of violating the Stored Communications Act by sharing user search terms and other information with the server hosting whatever webpage that user clicked to via Google Search results. A settlement was reached that would require Google to include certain disclosures on some of its webpages and would distribute more than $5 million to cy pres recipients, more than $2 million to class counsel, and no money to absent class members. The district court approved the settlement over the objections of several class members, and the U.S. Court of Appeals for the Ninth Circuit affirmed. The Supreme Court then granted certiorari to address petitioners’ challenge that this cy pres settlement did not satisfy the Rule 23(e) requirement that class action settlements be “fair, reasonable, and adequate,” but did not ultimately reach the merits of that question.In a per curiam opinion, the Court vacated the judgment of the Ninth Circuit and remanded the case for further proceedings to determine whether the class action plaintiffs even had standing to bring their class action in light of the Supreme Court’s 2016 decision in Spokeo v. Robins. That case held that “Article III standing requires a concrete injury even in the context of a statutory violation.” Here, the Court indicated, the lower courts needed to resolve “whether any named plaintiff has alleged [Stored Communications Act] violations that are sufficiently concrete and particularized to support standing.” If not, the lack of standing would deprive the federal courts of subject matter jurisdiction in this case. Justice Thomas dissented. To discuss the case, we have Theodore "Ted" Frank, Director of Litigation and Senior Attorney, Hamilton Lincoln Law Institute - and one of the named petitioners in this case.

On March 20, 2019, the Supreme Court heard Frank v. Gaos, stemming from a class action suit brought against Google for allegedly leaking, in violation of privacy laws, information about their search terms to third parties by including search terms in the referrer header. Essentially, the plaintiffs allege that Google disseminated private information of users in violation of the Stored Communications Act. The district court approved a cy pres, or “near as possible award”, that directs the application of the property (or a portion of the property) to a charitable purpose that reasonably approximates the designated purpose rather than a few cents or dollars to class members.The petitioners in the case before the Supreme Court, led by Theodore Frank, included all those who believe the district court’s decision to award a cy pres settlement creates an unlawful conflict of interest between attorneys, who were compensated monetarily, and class members, who were not. Secondly, they allege that it is inappropriate that the settlement fund was given to institutions that regularly council in the matter at hand (i.e. privacy cases). The respondents include members from both parties (plaintiffs and defendants) who support the cy pres award.The Supreme Court decided to vacate and remand to the 9th Circuit with direction to investigate the issue of standing. Justice Thomas was the lone dissenter, claiming that the settlement should be reversed, because “the class members here received no settlement fund, no meaningful injunctive relief, and no other benefit whatsoever in exchange for the settlement of their claims.”Ted Frank will discuss the Supreme Court’s decision, next steps, and other like cases including another pending cy pres cert petition, Perryman v Romero.Featuring: Theodore "Ted" Frank, Director of Litigation and Senior Attorney, Hamilton Lincoln Law Institute Teleforum calls are open to all dues paying members of the Federalist Society. To become a member, sign up on our website. As a member, you should receive email announcements of upcoming Teleforum calls which contain the conference call phone number. If you are not receiving those email announcements, please contact us at 202-822-8138.

On March 20, 2019, the Supreme Court heard Frank v. Gaos, stemming from a class action suit brought against Google for allegedly leaking, in violation of privacy laws, information about their search terms to third parties by including search terms in the referrer header. Essentially, the plaintiffs allege that Google disseminated private information of users in violation of the Stored Communications Act. The district court approved a cy pres, or “near as possible award”, that directs the application of the property (or a portion of the property) to a charitable purpose that reasonably approximates the designated purpose rather than a few cents or dollars to class members.The petitioners in the case before the Supreme Court, led by Theodore Frank, included all those who believe the district court’s decision to award a cy pres settlement creates an unlawful conflict of interest between attorneys, who were compensated monetarily, and class members, who were not. Secondly, they allege that it is inappropriate that the settlement fund was given to institutions that regularly council in the matter at hand (i.e. privacy cases). The respondents include members from both parties (plaintiffs and defendants) who support the cy pres award.The Supreme Court decided to vacate and remand to the 9th Circuit with direction to investigate the issue of standing. Justice Thomas was the lone dissenter, claiming that the settlement should be reversed, because “the class members here received no settlement fund, no meaningful injunctive relief, and no other benefit whatsoever in exchange for the settlement of their claims.”Ted Frank will discuss the Supreme Court’s decision, next steps, and other like cases including another pending cy pres cert petition, Perryman v Romero.Featuring: Theodore "Ted" Frank, Director of Litigation and Senior Attorney, Hamilton Lincoln Law Institute Teleforum calls are open to all dues paying members of the Federalist Society. To become a member, sign up on our website. As a member, you should receive email announcements of upcoming Teleforum calls which contain the conference call phone number. If you are not receiving those email announcements, please contact us at 202-822-8138.

A case in which the Court was asked to decide whether, or in what circumstances, a cy pres award of class action proceeds that provides no direct relief to class members supports class certification and comports with the requirement that a settlement binding class members must be “fair, reasonable, and adequate.”

At the heart of Frank v. Gaos, a case before the U.S. Supreme Court, is an $8.5 million settlement from Google that ended up squarely in the pockets of everyone except those who were harmed by the tech giant’s violation. Class action expert Sergio Campos untangles not just the money trail but the possible outcomes. Recorded on January 31, 2019.

The case of Frank v. Gaos presents the question of whether and in what circumstances courts can approve class action settlements that send all or part of the settlement to charity rather than to class members. The payments to charity are known as “cy pres” payments—French for “next best.” The idea is that, if, for some reason, it is not practical to send the money to class members—usually because the money is not sufficient to send more than a few cents or dollars to each class member—the next best thing is to send it to a charity that can serve class members indirectly.Ted Frank runs an organization that objects to class action settlements he deems problematic. He objected to a settlement in a privacy lawsuit against Google on the ground that all the money that did not go to attorneys’ fees and other transaction costs (some several million dollars) was going to charity. Class members got nothing besides changes to Google’s privacy disclosures. Frank says that cy pres should never be counted when the court assesses whether a settlement is fair. But, if it is counted, courts should always try to distribute money to class members before ever resorting to cy pres. Mr. Frank also takes issues with the charities that received the money in the Google case.The class action lawyers and Google say cy pres has been used for decades and there is nothing wrong with it when it is impractical to distribute the money (the class here comprises 140 million people); the charity will indirectly serve the class’s interests, and there is no conflict of interest on the part of the judge or lawyers in selecting the charities. The issues of Frank v. Gaos as related in oral arguments are further discussed in this teleforum.Featuring: Prof. Brian T. Fitzpatrick, Professor of Law, Vanderbilt University Law School Teleforum calls are open to all dues paying members of the Federalist Society. To become a member, sign up here. As a member, you should receive email announcements of upcoming Teleforum calls which contain the conference call phone number. If you are not receiving those email announcements, please contact us at 202-822-8138.

What is the purpose of class actions? To provide compensation to class members? Or to provide compensation for attorneys? The Seventh Circuit has taken a skeptical view of settlements that provide fees for counsel but no meaningful benefit for the class. But there is a circuit split on the question, with the Ninth Circuit approving settlements that maximize attorney fees at the expense of the class, while funneling the class’s compensation to organizations already supported by defendant contributions.The U.S. Supreme Court granted cert in Frank v. Gaos to consider whether and in what circumstances cy pres is permitted in class action settlements. Class counsel brought a putative class action against Google alleging Stored Communications Act violations entitling over 100 million class members to $1000/violation statutory damages. Before a motion to dismiss could be decided, the parties settled. Class counsel would receive over $2.1 million (over $1000/hour for every lawyer who worked on the case) and the class would receive nothing. The parties justified this settlement because of a provision providing for cy pres donations: about $5 million to five organizations that would use the money on Internet-related issues. At the fairness hearing, class member Ted Frank objected that the settlement unfairly benefited class counsel at the expense of the class, and objected that the cy pres money was going to organizations affiliated with Google or class counsel, such as Chicago-Kent Law School, the alma mater of one of the attorneys. The district court stated the cy pres did not pass the “smell test,” but approved the settlement under Ninth Circuit precedent, and the Ninth Circuit affirmed.Ted Frank, litigation director at the Competitive Enterprise Institute, argues that a settlement where attorneys receive millions and the class receives nothing by definition fails the Rule 23(e) requirement that settlements be “fair, reasonable, and adequate.” A bright line rule on “fairness” requiring that attorney fees be proportional to the direct recovery to the class would provide guidance to lower courts, align counsels’ incentives with the class they represent, and reduce the incentive to bring low-value class actions that function as a mechanism to extract fees.The New Jersey Civil Justice Institute filed an amicus brief in the case. Alida Kass, president and chief counsel, will discuss the questions at issue in Frank v. Gaos. The argument is scheduled for October 31.Featuring: Alida Kass, President and Chief Counsel, New Jersey Civil Justice Institute Teleforum calls are open to all dues paying members of the Federalist Society. To become a member, sign up here. As a member, you should receive email announcements of upcoming Teleforum calls which contain the conference call phone number. If you are not receiving those email announcements, please contact us at 202-822-8138.

The case of Frank v. Gaos presents the question of whether and in what circumstances courts can approve class action settlements that send all or part of the settlement to charity rather than to class members. The payments to charity are known as “cy pres” payments—French for “next best.” The idea is that, if, for some reason, it is not practical to send the money to class members—usually because the money is not sufficient to send more than a few cents or dollars to each class member—the next best thing is to send it to a charity that can serve class members indirectly.Ted Frank runs an organization that objects to class action settlements he deems problematic. He objected to a settlement in a privacy lawsuit against Google on the ground that all the money that did not go to attorneys’ fees and other transaction costs (some several million dollars) was going to charity. Class members got nothing besides changes to Google’s privacy disclosures. Frank says that cy pres should never be counted when the court assesses whether a settlement is fair. But, if it is counted, courts should always try to distribute money to class members before ever resorting to cy pres. Mr. Frank also takes issues with the charities that received the money in the Google case.The class action lawyers and Google say cy pres has been used for decades and there is nothing wrong with it when it is impractical to distribute the money (the class here comprises 140 million people); the charity will indirectly serve the class’s interests, and there is no conflict of interest on the part of the judge or lawyers in selecting the charities. The issues of Frank v. Gaos as related in oral arguments are further discussed in this teleforum.Featuring: Prof. Brian T. Fitzpatrick, Professor of Law, Vanderbilt University Law School Teleforum calls are open to all dues paying members of the Federalist Society. To become a member, sign up here. As a member, you should receive email announcements of upcoming Teleforum calls which contain the conference call phone number. If you are not receiving those email announcements, please contact us at 202-822-8138.

What is the purpose of class actions? To provide compensation to class members? Or to provide compensation for attorneys? The Seventh Circuit has taken a skeptical view of settlements that provide fees for counsel but no meaningful benefit for the class. But there is a circuit split on the question, with the Ninth Circuit approving settlements that maximize attorney fees at the expense of the class, while funneling the class’s compensation to organizations already supported by defendant contributions.The U.S. Supreme Court granted cert in Frank v. Gaos to consider whether and in what circumstances cy pres is permitted in class action settlements. Class counsel brought a putative class action against Google alleging Stored Communications Act violations entitling over 100 million class members to $1000/violation statutory damages. Before a motion to dismiss could be decided, the parties settled. Class counsel would receive over $2.1 million (over $1000/hour for every lawyer who worked on the case) and the class would receive nothing. The parties justified this settlement because of a provision providing for cy pres donations: about $5 million to five organizations that would use the money on Internet-related issues. At the fairness hearing, class member Ted Frank objected that the settlement unfairly benefited class counsel at the expense of the class, and objected that the cy pres money was going to organizations affiliated with Google or class counsel, such as Chicago-Kent Law School, the alma mater of one of the attorneys. The district court stated the cy pres did not pass the “smell test,” but approved the settlement under Ninth Circuit precedent, and the Ninth Circuit affirmed.Ted Frank, litigation director at the Competitive Enterprise Institute, argues that a settlement where attorneys receive millions and the class receives nothing by definition fails the Rule 23(e) requirement that settlements be “fair, reasonable, and adequate.” A bright line rule on “fairness” requiring that attorney fees be proportional to the direct recovery to the class would provide guidance to lower courts, align counsels’ incentives with the class they represent, and reduce the incentive to bring low-value class actions that function as a mechanism to extract fees.The New Jersey Civil Justice Institute filed an amicus brief in the case. Alida Kass, president and chief counsel, will discuss the questions at issue in Frank v. Gaos. The argument is scheduled for October 31.Featuring: Alida Kass, President and Chief Counsel, New Jersey Civil Justice Institute Teleforum calls are open to all dues paying members of the Federalist Society. To become a member, sign up here. As a member, you should receive email announcements of upcoming Teleforum calls which contain the conference call phone number. If you are not receiving those email announcements, please contact us at 202-822-8138.

In this episode: A left-wing lobbyist loses his law license after trying to shake down Chevron over alleged environmental violations in Ecuador; the U.S. Supreme Court hears Frank v. Gaos, a case regarding the legitimacy of class action lawsuit settlements which direct the money not to the injured class of persons, but rather trial lawyers; and the Freedom Foundation, a free-market organization in the Pacific Northwest, claims credit for persuading 25,000 government employees principally in Oregon and Washington to stop paying dues or agency fees to government worker unions. Learn more about the organizations and influencers discussed in the show at InfluenceWatch.org Facebook: https://www.facebook.com/capitalresearchcenter Twitter: https://twitter.com/capitalresearch Instagram: https://www.instagram.com/capital.research.center/ LinkedIn: https://www.linkedin.com/company/capital-research-center-dc

Frank v. Gaos | 10/31/18 | Docket #: 17-961

Listen, this episodes a little off the hinges.  The primary case is Frank v. Gaos, which discusses whether class action claims that don't actually give people money are legit, sort of sets the stage for a tangent-filled discussion between tired Nazim and punchy Brett.  The law starts in earnest at (06:32), get side-tracked and basically starts at (14:24).

On April 30, the Supreme Court granted cert in Frank v. Gaos, an appeal of a Ninth Circuit decision affirming a District Court cy pres class action settlement. The petitioner claims that because the class action members received no direct relief, the award does not support class certification and violates Rule 23 of the Federal Rules of Civil Procedure requiring a settlement binding class members to be “fair, reasonable, and adequate.” Ted Frank, petitioner in the case and member of the Federalist Society Litigation Practice Group, will join us to discuss this important case.Featuring:Theodore H. Frank, Director of Litigation, Competitive Enterprise Institute Teleforum calls are open to all dues paying members of the Federalist Society. To become a member, sign up here. As a member, you should receive email announcements of upcoming Teleforum calls which contain the conference call phone number. If you are not receiving those email announcements, please contact us at 202-822-8138.

On April 30, the Supreme Court granted cert in Frank v. Gaos, an appeal of a Ninth Circuit decision affirming a District Court cy pres class action settlement. The petitioner claims that because the class action members received no direct relief, the award does not support class certification and violates Rule 23 of the Federal Rules of Civil Procedure requiring a settlement binding class members to be “fair, reasonable, and adequate.” Ted Frank, petitioner in the case and member of the Federalist Society Litigation Practice Group, will join us to discuss this important case.Featuring:Theodore H. Frank, Director of Litigation, Competitive Enterprise Institute Teleforum calls are open to all dues paying members of the Federalist Society. To become a member, sign up here. As a member, you should receive email announcements of upcoming Teleforum calls which contain the conference call phone number. If you are not receiving those email announcements, please contact us at 202-822-8138.