July 14, 2011
Zimmerman on Agency-Based Aggregate Settlements
Adam Zimmerman (St. John's University School of Law) has a great post over at the Reg Blog on procedural protections in aggregate agency-based settlements. From the post:
"agency settlements may frustrate court access just like class actions. Agency settlements may “crowd out” private litigation by exhausting the limited funds of a defendant, requiring that the claimants waive rights to sue, or simply foreclosing class action litigation. In addition, like private class counsel, agencies may have conflicts with the victims they compensate. Agencies may succumb to capture by the businesses they regulate, seek quick settlements to resolve embarrassing missteps in regulatory policy, or lack incentives and input to address victims’ interests."