On behalf of a class member, we filed objections to a class action settlement that releases the claims of a class of about 125,000 consumers against the defendant law firms the class members retained for debt settlement legal services. We argued that the settlement is not fair, reasonable, and adequate as required by Fed. R. Civ. P. 23(e) because it provides no benefit to the class. The settlement requires the class members to surrender all of their claims in exchange for no compensation and provides no injunctive relief that will benefit the class.
The district court held a final approval hearing on February 2, 2012. On March 12, 2012, the court entered an order approving the settlement. We appealed the district court’s decision to the Court of Appeals for the 11th Circuit. On September 10, 2013, the Eleventh Circuit issued a decision vacating the judgment and remanding the case to the district court for further proceedings, holding that the magistrate judge abused his discretion when he found, without adequate evidentiary support, that the defendants could not satisfy a significant judgment.