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Originally Posted by ngdawg
Screwed over is one thing...a class action lawsuit that nets people $3 is hardly a victory for the screwed, nor is a stock 'dividend' of $2+. That was basically my point, not that there was a wrong righted, but that after millions spent in defense and settlement, that's what anyone ends up with, while the lawyers reap the true rewards.
I agree-at least some class action suits have been beneficial in changing policy and indeed, that may be the true bottom line.
In this particular case of the tobacco companies misleading the public, again, I agree with that statement as I am one of the misled-addicted to a brand that sold itself purely on its ultra-low numbers. But the ultimate 'winners', regardless of outcome, will be the lawyers. I could very well write a testimony to my belief in and in falling for the falsehoods presented, but what benefit would it produce? In lawsuits filed previously against big tobacco for causing deaths, judgments that have gone for the plaintiffs are so tied up in appeals, they will probably never see a dime, but rest assured, the lawyers will.
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OK, I think that I muddied the waters with the MetLife stuff. For the record, there was no class action lawsuit against MetLife that I'm aware of. The reason that you got a dividend was that the nature of the company changed from private ownership to public. By the very nature of having one of several policy types with them, you owned stock in comany. When they took it public, you received a dividend payment just like all other policy holders.
I agree that the lawyers share of these judgements need to be reduced, although you do need to understand that they're taking considerable risk in most cases. They do all of the research, file all the paperwork and arrange for all the testimony (if it goes to court). They also find all the wronged parties and distribute the funds. Unfortunately, most target companies have found it cheaper to settle out of court rather than fight the truely frivolous suits which just rewards the less scrupulous lawyers out there. Doing away with class actions altogether, though, is a fantastically bad idea that take away everyone's ability to remedy the greatest wrongs done by corporate America.