Texans for Lawsuit Reform

Through political action, legal, academic and market research, and grassroots initiatives, TLR fights for common-sense reforms that keep Texas open for business.

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For the Record

The Great Tuna Settlement of 2015

A recent newspaper article spurred us to look into The Great Tuna Settlement of 2015. What we found, of course, was more evidence of client recruitment by enterprising plaintiff lawyers.

In Spring 2015, a California law firm announced it had settled a nationwide class action lawsuit against Starkist for $12 million. The basis of the lawsuit was that Starkist’s five-ounce cans of tuna did not actually contain five ounces of meat. The cans were, it was alleged, slightly underfilled.

Under the proposed settlement, consumers were to receive a cash award of $25 or tuna vouchers worth $50, but the fine print contained a caveat: the settlement was subject to “pro rata dilution if the total amount of claims exceeds the available settlement funds.” In other words, the more people who joined the class, the lower each class member’s award would be. The federal judge in California overseeing the case found that the $12 million settlement was adequate because the plaintiff’s case was “relatively weak.” It turns out it was going to be difficult to establish that a substantial number of underweight cans were sold to the public.

Based on rates of $300 to $850 per hour, the plaintiff’s lawyers claimed to have $1.6 million of billable time in the file. They asked to be awarded a $4 million fee. Case-related expenses topped $500,000. Thus, the funds available to the class were reduced to a little under $7.5 million.

Multiple news outlets picked up the story. The unexpected publicity resulted in 2.5 million claims being submitted by consumers. Because of the “pro rata dilution” provision in the settlement agreement, each cash claim was reduced from $25 to under $2, and each voucher claim was reduced from $50 to around $4.

Due to appeals, the settlement still has not been funded.

While all of this is interesting, none of it is what really caught our attention. Here’s what did …

In asking for court approval of the settlement, the lead plaintiff’s lawyer filed a declaration explaining how his firm got the case. He explained that his firm saw a news report about how district attorneys in three California counties had settled with several companies, including Starkist, for alleged misrepresentation about their tuna products.

The plaintiff law firm then took it upon itself to investigate tuna can contents, which is explained in detail in the lawyer’s declaration.

Then, in a single sentence, the lawyer explained how his firm found its clients: the firm’s attorneys “corresponded with and interviewed class members.” Ultimately, the law firm filed four single-plaintiff lawsuits in four states—California, New Jersey, Florida and New York—and then it abandoned three of the suits.

Reading between the lines, it is clear that this law firm saw an opportunity, developed a case and then recruited four people to serve as class plaintiffs—resulting in a $4 million pay day for the lawyers, whereas their clients will maybe receive $2 each.

Don’t get us wrong. If a can claims to contain five ounces of tuna, it should contain five ounces of tuna! But we continue to have a problem with lawyers soliciting clients for their own enrichment. If there are no consequences for ambulance chasing, then it will never end.

 

Did you know that under a Texas law advocated by TLR and passed by the Legislature in 2003, if members of a class are paid in vouchers when a class action settles, their lawyers are paid in vouchers, too? If vouchers are good enough for the clients, they are good enough for the lawyers. Read more about that reform here.

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Texans for Lawsuit Reform

46 minutes ago

Texans for Lawsuit Reform

Abusive commercial vehicle lawsuits are jeopardizing small businesses and the essential services Texas families rely on. As our state works to recover from the pandemic and from the recent devastating winter storm, we can’t let lawsuit abuse kill these critical jobs and endanger our supply chain. Read the Keep Texas Trucking Coalition’s statement regarding Senate Bills 17 and 207 and House Bills 19 and 1617 here: bit.ly/3b5m5ZN ... See MoreSee Less

Statement by the Keep Texas Trucking Coalition on SB 17, SB 207, HB 19 and HB 1617 – Keep Texas Trucking Coalition

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AUSTIN—The Keep Texas Trucking Coalition (KTTC) today released the following statement regarding Senate Bills 17 and 207 and House Bills 19 and 1617, which address abusive lawsuits against owners an...
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Texans for Lawsuit Reform

1 hour ago

Texans for Lawsuit Reform

Abusive commercial vehicle lawsuits are built on presenting misleading evidence to the jury—whether inflated medical bills or prejudicial evidence about a commercial vehicle operator’s conduct. We cannot expect juries to arrive at a fair decision when given misleading, extraneous and purposely prejudicial information. Read TLR’s statement regarding our efforts to end abusive lawsuits against commercial vehicle owners here: bit.ly/3q1OzaZ ... See MoreSee Less

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TLR Statement on SB 17, SB 207, HB 19 and HB 1617

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Texans for Lawsuit Reform (TLR) today issued the following statement regarding its efforts to end abusive lawsuits against commercial vehicle owners.
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Texans for Lawsuit Reform

3 days ago

Texans for Lawsuit Reform

Facing tough questions from state senators, embattled Texas Attorney General Ken Paxton defended his office’s failed effort to overturn presidential election results in key battleground states and its decision to spend millions of dollars on a lawsuit against Google. Read and share: bit.ly/3k1cO7S ... See MoreSee Less

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Texas senators grill embattled Attorney General Ken Paxton over election lawsuit, Google case

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Facing tough questions from state senators, embattled Texas Attorney General Ken Paxton defended his office’s failed effort to overturn presidential election results in key battleground states and i...
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lawsuitreform avatarTLR@lawsuitreform·
1h 1366508585111482371

Read TLR's statement regarding our efforts to end abusive lawsuits against commercial vehicle owners here: https://bit.ly/3q1OzaZ #txlege #lawsuitreform #tortreform

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lawsuitreform avatarTLR@lawsuitreform·
26 Feb 1365406485400981509

Sign up for the TLR Weekly News Roundup to receive a daily digest of headlines & news stories about lawsuit reform from Texas & around the country!

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Please use the form below to receive a daily digest of TLR Clips - headlines and news stories about lawsuit reform from Texas and around the country.

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lawsuitreform avatarTLR@lawsuitreform·
26 Feb 1365346286115958793

Embattled Texas AG Ken Paxton defended his office’s failed effort to overturn presidential election results in key battleground states & its decision to spend millions of dollars on a lawsuit against Google. Read & RT: #lawsuitreform #tortreform

Texas senators grill embattled Attorney General Ken Paxton over election lawsuit, Google case

Facing tough questions from state senators, embattled Texas Attorney General Ken Paxton defended his office’s failed effort to overturn presiden...

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Texans for Lawsuit Reform
1701 Brun Street
Houston, Texas 77019

Ph. 713-963-9363
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