Seventh Circuit Holds Footlong Settlement Falls Short

The Seventh Circuit's rejection of a class action settlement in a case alleging consumer fraud against Subway for allegedly "shorting" customers of its Footlong sandwiches illustrates the pitfalls of settlements that provide only injunctive relief and the perils to plaintiffs who pursue claims for "worthless benefits." In Re Subway Footlong Sandwich Mktg. & Sales Practices Litig., 2017 U.S. App. LEXIS 16260, at *14 (7th Cir. Aug. 25, 2017). The Seventh Circuit recognized: "[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.' That's an apt description of this case." Id. (citation omitted). The court further warned that, "[n]o class action settlement that yields zero benefits for the class should be approved[.]" Id. at *11.