Wednesday January 13, 2016

Yahoo Class Action: $4 M For Lawyers, $0 For Users

Unfamiliar with the way class action lawsuits work? Here's a perfect example of how they can go wrong in a hurry. Since this is still subject to the court's approval, there is still a slim chance things might change.

Last week, they asked US District Judge Lucy Koh to accept a proposed settlement (PDF). Under the proposal, the massive class of non-Yahoo users won't get any payment, but the class lawyers at Girard Gibbs and Kaplan Fox intend to ask for up to $4 million in fees. (The ultimate amount of fees will be up to the judge, but Yahoo has agreed not to oppose any fee request up to $4 million.)