9th Circ. Rips 'Worthless' Deal In ARS Debt Collection Row

Law360, San Francisco (January 25, 2017, 11:20 PM EST) -- The Ninth Circuit on Wednesday partially reversed and remanded a settlement against debt collector ARS National Services over anonymous messages left on class members' voicemail, criticizing a magistrate judge for approving a settlement that forfeited 4 million members' rights to pursue future class claims in exchange for "worthless injunctive relief."

A three-judge panel found in a precedential opinion written by U.S. Circuit Judge Paul J. Watford that Magistrate Judge Karen S.Crawford abused her discretion in approving the deal. The deal gave ARS and class counsel what they wanted, but essentially left 4 million class members with nothing to show for it,...

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