Hamilton Lincoln Law Institute’s Post

These are arguments I’ve wanted to make for years, because these tactics cost consumers millions every year, but was waiting for the right fact pattern to raise rhe question of first impression in federal court. The Hamilton Lincoln Law Institute represents four intervenors who are challenging plaintiffs’ counsel’s forum shopping tactics in MacClelland v. Cellco Partnership (Verizon). Plaintiffs’ attorneys are settling a nationwide class action that covers every Verizon post-paid wireless consumer—58 million Americans—in Middlesex County, New Jersey. Esposito v. Cellco Partnership. The attorneys previously litigated their claims in the federal courts, but, on November 10, 2023, after settling the federal class actions, they filed a new complaint in state court because they know they can likely get a 33.3% fee award approved out of the $100 million settlement fund with much less judicial oversight. If class attorneys had filed their settlement with their first-filed complaint, in the Northern District of California, controlling case law would allow no more than 25% attorneys’ fees, and likely less than that. Intervenors Allison Hayward, Peter Heinecke, Lawrence Prince, and Will Yeatman oppose this forum shopping, which breaches the fiduciary duty that class counsel owes to maximize recovery to class members. The intervenors ask the original court to act within its equitable authority redistribute any excess attorneys’ fees that class counsel receives from the New Jersey court into a constructive trust for the benefit of all class claimants. The court will have the discretion to zero out fees entirely. In the alternative, the intervenors move to file a class action complaint against plaintiffs’ attorneys themselves. If successful and if the New Jersey court validly approves the class settlement, Intervenors will win between $8.3 million and $33 million for class claimants. The dispute also raises the question of compliance with 28 U.S.C. § 1715, which requires statutory notice to state and federal officials regarding the proposed settlement of federal class actions. Thanks to M. Frank Bednarz, Max Schreiber, and Adam Schulman for their excellent work on this. Briefing: https://lnkd.in/g2P2_y-Y

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