What’s Really Going On Behind Class Action Settlements?

A recent lawsuit out of Delaware is pulling back the curtain on some messy stuff happening in the world of class action settlements.

So here’s the deal: a litigation finance company called CoreStream Capital is suing a class action settlement group, Managed Care Advisory Group (MCAG), for allegedly breaking a 2019 agreement. Basically, CoreStream was supposed to get introductions to class members who wanted to sell their claims early—before the whole long settlement process finished (the deadline for claims is February 2025).

According to Reuters, CoreStream’s lawyers say MCAG promised to connect them with 200 top clients every 10 days and to back them up if those clients asked about selling their claims. But instead, CoreStream claims MCAG barely made any introductions—only one connection for a Visa/MasterCard case. Ouch.

Even worse, CoreStream says MCAG gave those class members way higher payout estimates than what was realistic. If that’s true, MCAG might’ve been breaking their own rules about not making promises on settlement payouts—since those depend on things like how many people actually participate.

This lawsuit shines a light on how complicated—and sometimes sketchy—the world of litigation finance and class action settlements can be. It’s a good reminder that in all this, accountability and honesty really matter, especially when people’s claims and money are on the line.

Want to dig deeper? The full story’s over at Reuters: https://www.reuters.com/legal/legalindustry/column-litigation-funders-lawsuit-exposes-underside-mega-class-actions-2024-10-24/