Seventh Circuit Approves Cy Pres Settlement

We previously reported on the uncertainty of cy pres settlements in class action lawsuits. Although the Supreme Court granted cert on the issue, the Seventh Circuit weighed in during the interim by approving a settlement that included a potential payout to cy pres recipients.

The case arose out of a million phone calls made to consumers throughout 2011 and 2012 in which people were offered a chance to go on a free cruise if they agreed to participate in a political survey. Plaintiffs filed a class action lawsuit under the Telephone Consumer Protection Act seeking damages against Caribbean Cruise Line and other defendants for the calls. The district court certified the class and ultimately granted partial summary judgment in favor of the plaintiff. A trial was scheduled. However, the parties agreed to settle the suit in lieu of going to trial. The defendants agreed to pay between $56 million and $76 million into a fund to be paid out to the class members. The