Specifically, Grassley said the subcommittee will investigate how awards from class action lawsuits are distributed to victims and to the lawyers who represent them, as well as if class action lawsuits driven by lawyers unnecessarily jeapordize individuals rights to file suit.
"Recent reports in the news media have raised concerns about class action lawsuits. During this hearing, we will consider the possibility that some lawyers may be using the class action lawsuit structure as a way to win extraordinary sums of money in attorneys' fees, while the consumer ends up with a nominal amount and has been stripped of the right to file their own suit," said Grassley.
Federal Rule of Civil Procedure 23, which governs class action lawsuits, was established in 1938 and amended in 1966. Class action lawsuits are designed to speed up the judicial process by grouping individuals who have experienced similar losses into a ?class.' When a court certifies a group of individuals as a class, a lawsuit is then brought forth on behalf of the entire group.
The hearing, titled Class Action Lawsuits: Examining Victim Compensation and Attorneys' Fees, will begin at 2:00 p.m. on Thursday, October 30, in Room 226 of the Dirksen Office Building. Grassley is conducting the hearing as chairman of the Judiciary Subcommittee on Administrative Oversight and the Courts.
The individuals listed below are scheduled to testify:
Panel 1
Panel 2