San Diego Union Tribune Editorial: Reform This Scam
Tuesday, 10 March 2009 16:00

The San Diego Union Tribune editorialized today in support of Assemblyman Van Tran's AB 298, a bill that CALA supports. In the editorial, the UT writes:

"Now another trial lawyer scam involving class-action lawsuits may find the spotlight, thanks to legislation introduced by Assemblyman Van Tran, R-Costa Mesa. For years, trial lawyers have settled these suits with deals in which they get millions in legal fees but aggrieved consumers are only given coupons toward purchases from the companies that did them wrong in the first place – coupons that are almost never used.

"This has led to such assaults on common sense as owners of Ford Explorers with an alleged propensity to roll over being given a certificate that allows them to receive $500 off the purchase or lease of a new Explorer – in other words, a discount on the inflated-to-the-point-of-meaningless Manufacturer's Recommended Selling Price. The San Francisco law firm that brought the class-action suit, meanwhile, presented the court with a $25 million bill for its work.

"Where did the $25 million sum come from? According to the Citizens Against Lawsuit Abuse, the contingency fee of the suing law firm is “generally based on the full value of the coupon to every class member.” Given that just 2 percent of coupons are ever redeemed, this is preposterous."

 
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