J D McDorce
Premium
join:2001-12-29
Westland, MI
| reply to dogma
Re: There is only ONE winner in a "Class Action" suit
said by dogma  :
since this action dates back to 1991
That alone should make it interesting to figure out who is eligible for what. Since 1991, what is currently Verizon Wireless in the Detroit area was Cellular One and then Airtouch Cellular (which becomes more even more interesting, since the Verizon suit looks remarkably similar to one that Airtouch settled in 1996). Then there's the Bell Atlantic Mobile account (not in the Detroit area) that I had in 1993 and 1994... |
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Combat Chuck
Too Many Cannibals
Premium
join:2001-11-29
Erie, PA
| reply to dogma
Re: There is only ONE winner in a "Class Action" s
ahh, but it makes people feel better. Who cares that some sleazy lawyer walks off with enough money to buy a small-medium sized country, money which is financed by the customers via price increases.
the lawyer gets rich
the customer gets a trinket and the satisfaction of sticking it to the man.
the company gets off without having to admit fault
Everybody wins... everyone except for those of us who have half a brain and see class action as the sham it is.
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Infogrames != Atari |
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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. |
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