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Wilson v. DirectBuy, Inc.

Topic(s): Class Actions – Objections to Proposed Settlements
Date Of Involvement: 04/12/2011

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On behalf of a class member, we filed objections to a proposed class action settlement that would have released consumer claims against DirectBuy in exchange for extended DirectBuy memberships that provide little or no benefit to the class. In our objections, we explained that the proposed settlement was not "fair, reasonable and adequate" as required by Fed. R. Civ. P. 23(e), and we urged the Court to deny final approval.

In a decision issued on May 16, 2011, U.S. District Judge Janet C. Hall rejected the proposed settlement, finding that the plaintiffs in the case had substantially undervalued the strength of the settled claims and that the relief provided was meager in light of the potential recovery against DirectBuy.