Center For Class Action Fairness
"Operating largely on donations, the CCAF in a short period has gained a reputation as a formidable check on highly questionable practices that have gone unchallenged precisely because they are the product of collusive parties and allied judges. The advent of a committed and aggressive watchdog like CCAF is, to those familiar with these scams, like sunlight and Lysol."
— Karen Lee Torre of the Connecticut Law Tribune describing the Center for Class Action Fairness (CCAF).In 2009, Frank founded the non-profit Center for Class Action Fairness (CCAF) to represent consumers dissatisfied with their counsel in class actions and class action settlements. According to The American Lawyer, as of March 2011, the CCAF had filed objections to 17 settlements, with eight objections pending in federal district courts, and had been successful on six of them.
Frank founded CCAF after his successful objection to the proposed class action settlement in the Grand Theft Auto consumer fraud case. Under the settlement, class members who had bought a Grand Theft Auto: San Andreas video game with a hidden, sexually explicit easter egg would have received less than $30,000, while the plaintiffs' attorneys would receive $1 million in legal fees. The court rejected the settlement on other grounds, but the case spurred Frank to devote himself to objecting to class action settlements, and he left AEI.
CCAF has objected to settlements throughout the United States, in cases where class action lawyers receive cash payments but the plaintiff class receives only discount coupons for further products and services from the defendant company. CCAF argues in those cases that few of the coupons are ever used, so the actual payment to plaintiffs is much lower than the stated amounts. In 2010, CCAF successfully objected to a coupon settlement in a Central District of California class action alleging consumer fraud in the sale of Honda Civic Hybrids; the settlement would have provided $2.95 million in attorneys' fees, but only coupons to the class. Frank was reported to have said, "coupons are nearly worthless because so few of the intended beneficiaries will find it worthwhile to fill in all the necessary paperwork." The CCAF has also been involved in the case surrounding the allegations of email spamming by Ameritrade in 2009. The case brought Frank before Northern District of California Chief Judge Vaughn Walker, where he challenged the fairness of a TD Ameritrade settlement, which consists of coupons for antivirus software. Frank "argued that the court should not award, or should at least limit, the requested $1.87 million in attorney fees." Judge Walker rejected the Ameritrade settlement in October 2009.
Read more about this topic: Ted Frank
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