dogma
Premium
join:2002-08-15
Boulder City, NV
| There is only ONE winner in a "Class Action" suit ...and that would be the lawyers representing the plaintiff class.
The lawyers get 20% to 40% of any settlement in most cases since they work on a "contingency basis". So, if there are 5 million consumers in this class, multiplied by $45, that settlement would be about $225 Million. At 30%, the law firm[s] get $67.5 million, and each consumer gets (about) $45 in cash/credit.
What a joke. Moreover, since Verizon is such a big company, and since this action dates back to 1991 (156 Months ago), even the $225 Million figure is misleading. There is a finance model called Net Present Value (NPV). Basically, say a can of cola cost 10 cents in 1970, and now it cost $1, means my $1 could buy 10 times more 34 years ago. That $1 was more valuable then than now. So the $225 Million that Verizon ripped consumers off for in 1991 is now really only worth about $173 Million (at 2% inflation/yr). There do not seem to be any punitive damages in this settlement, since Verizon can still claim "no wrong doing", so it was in essence a zero interest $225 loan consumers gave Verizon during that time period, where only $173 Million had to be paid back (only because they got caught)
Have fun with your $45. |
