In the amici curiae brief, Brnovich and his colleagues encouraged the U.S. Supreme Court to prohibit cy pres-only settlement agreements. They argued that such deals — just like the Google settlement at issue — harm consumers.
“Cy pres-only settlement arrangements embody the worst flaws of the class-action settlement system and are notable in their disservice to consumers,” they argued.
Additionally, the attorneys general noted that cy pres-only deals enable defendants and class counsel to obtain their goals in the litigation. However, class members are left out because they don’t receive any payment. The settlement fund is diverted to third parties.
“In the absence of a direct benefit to the class, a proposed cy pres settlement cannot pass muster under basic conceptions of fairness,” the attorneys general said.
In a statement, Brnovich said, “Class-action lawsuits should be about protecting consumers and obtaining justice. Unfortunately, in this settlement with Google, the money is lining the pockets of attorneys and select organizations, instead of going to the harmed individuals. Our office is fighting to stop this tactic.”
