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Price Fixing Settlement Objectors Question Product Value

This article was originally published in The Rose Sheet

Executive Summary

A plan proposed by prestige beauty companies to settle a $175 mil. cosmetics price fixing lawsuit by offering free products fails to prove that all class members will receive their equal share of the settlement, the Pennsylvania Attorney General's Office claims in a brief submitted in Oakland, Calif. federal court

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Cosmetics settlement

Final approval hearing for class settlement between consumers and upscale cosmetics companies and department stores, originally slated for June 8, has been rescheduled to July 13 by Oakland, Calif. federal court. Agreement, reached in July, offers members of the class $175 mil. in department store cosmetics to settle price-fixing allegations against manufacturers including Estee Lauder, Chanel, and L'Oréal and department stores such as Federated, May's and Dillard's (1"The Rose Sheet" July 21, 2003, In Brief). Court has appointed a Special Master to hear and attempt to resolve objections to the settlement and the request by the plaintiffs' attorneys for payment of fees and litigation expenses prior to the hearing. A preliminary objection was filed by Washington Legal Foundation requesting the settlement notice be reissued to allow consumers time to opt out of or file objections to the settlement. The group also asserted the $24 mil. in attorneys' fees should be reduced (2"The Rose Sheet" May 10, 2004, p. 7)...

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