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9th Circ. Approves Facebook Settlement, But Who Benefits?

Law360, New York (December 10, 2012, 11:47 AM EST) -- Three years ago, a class action alleging a violation of privacy rights by Facebook was settled prior to class certification. The settlement provided for no compensation to class members, no injunction against similar conduct by Facebook in the future, and a substantial expansion of the class beyond the definition proposed in the complaint. The plaintiffs’ attorneys received approximately $3 million in fees.

Yet a federal district court in San Francisco approved the settlement, and a divided Ninth Circuit panel recently affirmed. The case illustrates both the deference awarded a district court’s evaluation of a class action settlement and the limited scrutiny...

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