Center for Class Action Fairness

The Center for Class Action Fairness (CCAF) is a U.S. nonprofit organization founded by Ted Frank in 2009. It operates primarily on donations and aims to represent consumers who are dissatisfied with their counsel in class actions and class action settlements. CCAF is now part of the Hamilton Lincoln Law Institute, a position it has held since late 2018.

Mission and Activities

CCAF's mission is to expose and challenge settlement practices in class actions that often favor lawyers over the class members they represent. It focuses on improving the fairness of class action settlements by ensuring that class members receive more equitable compensation compared to the legal fees awarded to attorneys. Over the years, CCAF has successfully recovered over $100 million for class members and has been instrumental in several landmark cases.

Notable Cases and Achievements

• Citigroup Securities Case: CCAF exposed overbilling by plaintiffs' lawyers and secured $26.7 million for shareholders.
• Subway Footlong Settlement: CCAF helped reverse a settlement where class members received no compensation while lawyers were set to receive significant legal fees.
• Honda Civic Hybrid Case: CCAF successfully challenged a coupon settlement, arguing that such settlements benefit lawyers more than class members.
• Cy Pres Settlements: CCAF has been prominent in challenging cy pres settlements that divert funds to charities instead of compensating class members. Their efforts have significantly reduced the prevalence of such settlements, ensuring that class members receive priority over third-party beneficiaries.

Impact and Legacy

The CCAF's work has reshaped judicial policy regarding cy pres settlements, making it more common for settlements to prioritize direct compensation to class members. This shift is credited with reducing the frequency of abusive settlements that bypass class members. CCAF's advocacy has been recognized by major media outlets, with Ted Frank being described as a leading critic of abusive class action settlements.

Criticism and Controversies

Some critics argue that CCAF's objections can delay otherwise beneficial settlements. However, CCAF maintains that its goal is to improve the class action system by making it more difficult and less profitable for lawyers to pursue frivolous or collusive suits.

Leadership and Structure

CCAF is led by a board of directors with notable figures from the legal academic community. Despite its impact, CCAF does not accept payments to drop objections to settlements, maintaining its independence and commitment to consumer interests.

[1] https://en.wikipedia.org/wiki/Ted_Frank [2] https://hlli.org/center-for-class-action-fairness-changes-landscape-of-cy-pres-settlements/ [3] https://cei.org/issues/law-and-litigation/class-action-fairness/ [4] https://www.guidestar.org/profile/45-5119142 [5] https://www.fjc.gov/subject/class-action-fairness-act-cafa