Coupon Settlements
Before a case even begins in a courtroom, a defendant may attempt to settle a class action lawsuit with the plaintiffs. The defendant may offer what is known as a “coupon settlement” in an attempt to minimize the cost of the legal action. These settlements offer plaintiffs some benefit, usually a reduced price for future goods or services. However, these settlements are often used in order to avoid paying a cash settlement.
Contact the class action lawsuit attorneys of Feazell & Tighe, LLP, at 877-508-0588 for more information regarding your legal options if you are considering a class action lawsuit.
Is the Settlement Fair?
When a defendant offers plaintiffs a coupon settlement, the courts have to decide whether or not to allow this settlement. These settlements are legally permissible as long as they are considered fair by the court. To decide this, the court will consider the following:
- The type of settlement
- The plaintiff’s reaction to the settlement
- The amount offered by the settlement
- The costs associated with prolonged court proceedings
- The quality of lawyers on each side
- The quality of the class action argument
In many cases, companies offer settlements to avoid spending too much on litigation, and it may be in a plaintiff’s best interest to not accept the settlement. However, in some instances, a settlement offer might be a great option for plaintiffs.
Contact Us
If you are part of a group of people who have all suffered from the same person or entity in a similar way, you may be entitled to bring a class action lawsuit against that party. To learn more about this type of litigation, contact the class action lawsuit lawyers of Feazell & Tighe, LLP, by calling 877-508-0588.
