Rosen Firm's business model may be in trouble. New California law seeks to prevent class-action lawsuits that provide a big payday for lawyers but very little benefit for members of the class.

If this were to become law in, say, New York as well, or (preferably) a federal law -- Rosen Firm would be out of business.

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Federal judges in California are cracking down on warped incentives in class-action lawsuits, exerting tighter oversight of settlements that provide hefty fees for plaintiff lawyers but no meaningful benefit for those harmed.

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Please note that the original judicial decision that is the basis for this law was in FEDERAL court.

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In November, the federal court in Northern California updated guidelines for proposed class-action settlements, giving judges more leeway to reject deals that don’t deliver for the group of intended beneficiaries. Among the new rules: Parties must provide a lot more information about how the amount of the settlement was reached and how, specifically, they’ll make sure class members get their share.

“Judges will want a genuine assessment of the value of the case,” said Thomas Loeser, an attorney with plaintiff law firm Hagens Berman Sobol Shapiro in Seattle. “The new guidelines will make all class settlements better because judges will be equipped to detect marginal cases.”

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https://www.latimes.com/business/la-fi-class-...newsletter