Cases of Note
Eleventh Circuit Dismisses $35M Settlement Due to Class
Action Attorneys' Self-Dealing
The United States Court of Appeals for the Eleventh Circuit
dismissed a $35 million settlement of a class action alleging that
GoDaddy.com violated the TCPA when sending unsolicited texts
because class counsel engaged in self-dealing, and the lower court
abused its discretion in approving the settlement.
Under the settlement agreement, according to the Court, the
named plaintiffs would receive “preferential
treatment” and class counsel would be guaranteed
attorney's fees of up to $10.5 million. Their fees would not
be reduced even if the class members' claims totaled more
than the $35 million settlement (less the fees, administration
costs, court costs, and service fees). The agreement included a
release provision that released GoDaddy and its connected entities,
which bound about 98.1% of the class, effectively 1.26 million
members. The Court took issue with