Texas High Court Case Puts Cy Pres In The Crosshairs

Law360, Dallas (November 7, 2013, 10:37 PM EST) -- Texas argued Thursday in a state Supreme Court challenge that cy pres settlements may cheat absent class members out of what they're owed, an argument that, if successful, could disrupt how private class actions are negotiated because of the importance charitable donations hold in reaching settlements, attorneys say.

The state won an appellate judgment blocking an agreement developer Highland Homes Ltd. had reached to donate unclaimed funds to the Nature Conservancy, after it argued the money belongs to the class members and should be reserved for...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.