Below is an excerpt from the email received sent by PayPal to those who may benefit from settlement of a class action suit. The lawyers stand to gain more than 1/3 of this settlement. My reading of this and the results of dozens of other class actions is the attorneys are the primary beneficiaries of such litigation. Taking more than 1/3 of a negotiated amount for something the defendant says it did not do seems so wrong to me.
I think I hear Senator Edwards cheering in the background.
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"10. HOW WILL THE LAWYERS FOR THE CLASS BE PAID?From the inception of the litigation in early 2002 to the present, Class Counsel have not received any payment for their services in prosecuting the case, nor have they been reimbursed for any out-of-pocket expenses. If the Court approves the proposed settlement, Class Counsel will make a motion to the Court for an award of attorneys' fees of up to $3,332,500 and reimbursement of expenses of up to $135,000, to be paid from the $9.25 million settlement fund. Class Counsel will also seek reimbursement from the settlement fund on behalf of certain of the named plaintiffs in the litigation for reimbursement of their expenses related to their service as class representatives in the litigation, in an aggregate amount not to exceed $15,000. The motion will be heard at the settlement hearing described below in Section 11."
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