Lawyers won’t like this. Senator Chuck Grassley is introducing what he calls a consumer protection bill that would limit attorneys’ fees in class action lawsuits. Those are lawsuits where a great number of people are involved. He says the attorney’s fees would be based on actual damages. He says they’d be based on “reasonable” hourly rates.Under the legislation, all information on settlements in class action cases would have to be sent to the consumers in easy-to-understand language which includes the amount and sources of attorneys’ fees. The information would also have to be forwarded to every state Attorney General’s office, so that office could appeal unfair settlements on behalf of the residents.Grassley cites a recent case that involved video game maker Nintendo. Consumers who were hurt only got five-dollar coupons good toward future purchases while the lawyers got more than two-million dollars.
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