11th Circ. Nixes Settlement In Predatory Debt Relief Suit

Law360, Chicago (September 10, 2013, 5:25 PM EDT) -- The Eleventh Circuit on Tuesday upended a settlement in a class action targeting law firm Persels & Associates LLC and others over allegedly predatory debt settlement programs, finding the lower court had no basis to conclude that most of the defendants were financially unable to pay a meaningful award to the class.

In March 2012, U.S. Magistrate Judge Thomas G. Wilson approved a deal in the case that called for named plaintiff Miranda Day to receive $5,000, her counsel to rake in $300,000 in attorneys’ fees,...
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