DirectBuy Deal 'Valueless' To Most Of Class: Judge

Law360, New York (May 17, 2011, 6:20 PM EDT) -- A Connecticut federal judge shot down a settlement Monday that would have resolved five proposed consumer class actions against discount shopping club DirectBuy Inc., finding the overvalued deal would have shortchanged most of the 840,000 potential class members.

U.S. District Judge Janet C. Hall found the plaintiffs and DirectBuy had played up the risk of litigation and submitted a “poorly written” release that would have blocked the pursuit of viable state consumer protection claims — all for a “meager” agreement that reimbursed individuals with membership discounts.

“Those who have objected to the settlement do so vociferously,” Judge Hall said, denying a...

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Attached Documents



Case Information

Case Title

Subscribers Only

Case Number

Subscribers Only



Nature of Suit

Racketeer/Corrupt Organization


Subscribers Only

Date Filed

April 13, 2009

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