| The Honda Class Action - Where is the Fairness? |
| Written by Tom Scott, Executive Director |
| Tuesday, 29 December 2009 00:00 |
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I am not sure how many more of these I will have to write before any class action reform occurs in California or the rest of the country, but I have a feeling it will be quite a few. The latest class action abuse comes to us via the Honda Motor Corporation. The case involves allegations that Honda misrepresented the fuel efficiency of its Civic Hybrid. Under the settlement, owners who trade in their cars for certain other vehicles could get up to $1,000 in rebates or $100 in cash if they previously complained. Those who do not still own the car would get a $500 coupon. And before I forget you would also get a free DVD on saving gas. Nice. Something we all want to sit down to and watch with the kids. Even the plaintiffs' own expert conceded that it is likely that only 580 consumers of the 158,639 member class would receive the cash benefit. The plaintiffs would receive $22,500 and the attorneys would receive $2,950,000. Did that surprise you? I did not think so. A similar class action settlement involving Ford Explorers last year resulted in the attorney's getting $20 million and 75 $500 coupons were redeemed. How is that for a cash for clunkers program. Do people really believe this is the best system. Is this truly fair? The class action scam continues to roll and no one seems to really care. Oh wait, maybe they do. Apparently, 25 state attorneys general and the Center for Class Action Fairness do. And that includes our own Attorney General Jerry Brown. They have filed an amicus brief objecting to the class action settlement. They claim that "the receipt of coupons with strict limitations on transferability, duration, and use, coupled with a DVD containing information on how to improve fuel economy that is likely already available for free on the internet, does not amount to meaningful relief for unnamed class members." The madness around class actions really needs to stop. Legislators, attorneys general, and the public need to rise up and put basic reforms in place. Support groups like CALA and the Center for Class Action Fairness who are trying to educate the public about this gross legal practice. |