Virginia Personal Injury and Medical Malpractice Blog

LexisNexis Fair Credit Reporting Lawsuit-Class Action Mayhem

I think I'm like most Americans. I rip of those stupid "you're a winner because you are a member of a class action lawsuit" notices I get. I can't stand it that somehow a company has been shaken down, its customers given $25 coupons while the lawyers make off with millions. The class action lawsuit shakedown has gotten even worse recently.

An article in Virginia Lawyers Weekly reports of what has happened to settlement funds in a case that was settled in June, 2008. Apparently LexisNexis Management agreed to pay over $20 million to a class of folks who had been "injured" under the Fair Credit Reporting Act.

Apparently over $4 million worth of the funds could not be paid because the 'injured' either could not be located or refused to cash their $25 checks.

Here's what gets me. Was the $4 million refused by the 'victims' returned to Lexis/Nexis?

Nope.... it was redistributed to consumer, legal or public policy groups. These groups (like Public Justice, The Identify Theft Resource Center and Somaly Mam Foundation, among others) had nothing to do with the lawsuit. They are just groups. Nor more entitled to free money from Lexis/Nexis than the next group.

Hey, its  "good thing" these "good groups" got free money. Or is it? This wasn't a criminal action. Lexis/Nexis wasn't being 'punished' by the state. This was a civil action filed on behalf of allegedly "injured people. When they either couldn't be found or refused to cash their "winnings" the money should have been returned to Lexis/Nexis.