Saturday, September 9, 2017

Subway Footlong Subs Too Short—Court Tosses Settlement Agreemen

The plaintiffs argued that Subway’s footlong subs were sometimes shorter than one foot. The parties reached a settlement that the court felt was for the benefit of the lawyers. From Reuters (excerpts):

A class action that seeks only worthless benefits for the class and yields only fees for class counsel is no better than a racket and should be dismissed out of hand,” [7th] Circuit Judge Diane Sykes wrote for a three-judge panel. “That’s an apt description of this case.”

A settlement approved by a Wisconsin federal judge in February 2016 required Subway to adopt quality control measures, consistent with “the realities of baking bread,” to ensure that its six- and 12-inch sandwiches were that length.

But a prominent class-action critic, Ted Frank, said this merely codified practices Subway adopted soon after Corby’s photo went viral.

He said it made no sense to award $520,000 to the customers’ lawyers, plus $5,000 of “incentive” awards to 10 plaintiffs, for settling.

 You can read more here. In re: Subway Footlong Sandwich Marketing and Sales Practices Litigation, 7th U.S. Circuit Court of Appeals, No. 16-1652. 

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