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FTC on class actions

This article was originally published in The Rose Sheet

Executive Summary

Federal courts reviewing class action "coupon" settlements should be required to determine the "realistic value of the coupons to the class," commission says in Feb. 15 letter to U.S. Judicial Conference's Committee on Rules of Practice & Procedure. Coupons complicate a court's ability to analyze proposed settlements because "unlike monetary settlements, they are difficult to value" and "many factors come into play in such valuation, including the likelihood that consumers will actually use the coupon." FTC suggests courts should consider history of coupon redemption rates in similar situations, whether all class members will be entitled to use coupons, time restrictions on redemption...

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