Category Archives: Class Actions

House Financial Services Committee to Hold Hearing on CFPB Arbitration Rule

The title of the hearing is "Examining the CFPB’s Proposed Rulemaking on Arbitration: Is it in the Public Interest and for the Protection of Consumers?"  It will take place Wednesday, May 18. The witnesses seem not to have been announced, but given the composition of the Committee, I think we can anticipate the majority answering […]

Law Professor Letter Supporting Arbitration Rule in the Works

by Jeff Sovern Jean Sternlight of UNLV is circulating an impressive and well-argued letter for law professors to sign supporting the CFPB's proposed arbitration regulation.  According to my count, 139 have already signed it.  If you would like to add your name to the list, please email Jean at jean.sternlight@unlv.edu no later than May 20.

Chamber of Commerce Letter on Arbitration: Does it Make the Case for Class Actions?

by Jeff Sovern Earlier today, the US Chamber of Commerce released a letter to CFPB Director Richard Cordray from David Hirschmann, President and CEO, Center for Capital Markets Competitiveness, urging the Director to address certain issues at Thursday's CFPB arbitration field hearing. Here's one of those issues, as stated in the letter: [T]he public would benefit […]

Gold Article on Compensation’s Role in Class Actions

Russell M. Gold of NYU and Wake Forest has written Compensation's Role in Deterrence, forthcoming in 91 Notre Dame Law Review (2016). Here is the abstract: There are plenty of non-economic reasons to care whether victims are compensated in class actions. The traditional law and economics view, however, is that when individual claim values are […]

Erichson Article on Class Action Settlement Issues

Howard M. Erichson of Fordham has written Aggregation as Disempowerment, 92 Notre Dame Law Review (Forthcoming).  Here is the abstract: Class action critics and proponents cling to the conventional wisdom that class actions empower claimants. Critics complain that class actions over-empower claimants and put defendants at a disadvantage, while proponents defend class actions as essential to […]

BloombergNews: Ted Frank: Lightning Rod for Class Settlement Storms

Here.  Excerpt: Greed is undermining class actions, according to Ted Frank, founder and director of the Center for Class Action Fairness in Washington. Consumer and other class settlements often pay more to trial lawyers than to their clients, Frank says, and he's devoted his professional life to fighting that trend. Frank is an objector—a lawyer […]

The New Yorker on the Impact of Scalia’s Death on Class Actions and Arbitration

Here. Excerpt: [M]any of the Roberts Court’s most important business cases were decided by a 5–4 margin, with the five conservative Justices voting as a bloc. And, as [Vanderbilt law professor Brian] Fitzpatrick points out, “Scalia has done more than any other justice in making it difficult for consumers and employees to bring class-action suits. […]