Well the “no incentive” class action (TCPA)world is now upon us.
As we reported a few weeks back, the Eleventh Circuit Court of Appeals has cancelled all incentive awards in class litigation in a case called Johnson. This was part of the Eleventh Circuit’s general push to dismantle all consumer class actions in its footprint.
Pigs fat, hogs slaughtered– and all that.
The Johnson decision means that an individual bringing a TCPA class action can receive no more than any other unnamed class member as part of a settlement. In practical terms, that means instead of netting 5-25 thousand dollars for their services, Plaintiffs are now likely to recover just 5-25 regular dollars. As in, fast food money.
But that won’t stop the Plaintiff’s lawyers from cashing in.
Apropos: the first post-Johnson TCPA class action was just approved in Florida with the Plaintiff’s lawyers recovering a cool $710,000.00. But the Plaintiff—precisely zero in service award money. And while his lawyers asked for Plaintiff to receive a handsome $5,000.00 as part of the settlement he will instead be receiving about $11.25.
The case is Jairam v. Colourpop Cosmetics, LLC, CASE NO. 19-CV-62438-RAR, 2020 U.S. Dist. LEXIS 181656 (S.D. Fl. Oct. 1, 2020) and involves a total settlement fund of $2.8MM.