Coupon settlements are controversial, as in "we sued for lots of money, and all we got was this worthless coupon!" In fact, the Class Action Fairness Act of 2005 devotes a section, 28 U.S.C. 1712, to trying to rein in coupon settlements by regulating attorney's fees in those cases. For perhaps the best judicial analysis of a coupon settlement, see In re General Motors, 55 F.3d 768 (3d Cir. 1995).
But here is a case where the class wants coupons. Southwest Airlines issues free-drink coupons to some of its in-flight customers. Without the coupon, the drinks cost about $5 each. The coupons have no expiration date, and do not say that they have to be used on the day of the flight. And, originally, they didn't -- that is, Southwest would honor previously issued coupons at any time. But, then, Southwest changed its mind: It would only honor coupons on the day of issuance. If you collected coupons -- the named plaintiff has 45 of them -- you are now out of luck. So, if the class settles for $1 per class member, will the objectors howl "we sued for coupons, and all we got was the worthless buck!?"
People employed by Tyco International Ltd. when it was run by corrupt executives have won class action status for their lawsuit charging deception by the conglomerate's retirement savings plan.
Posted by: deal hoster | Sunday, June 03, 2012 at 02:18 AM
That's interesting that they want the coupons.
Posted by: Deals and Coupons | Saturday, April 28, 2012 at 11:51 AM