LawSeveral plaintiffs sued Procter & Gamble in a class action lawsuit alleging that the Procter & Gamble Pampers made with “dry max technology” caused their babies to suffer diaper rashes.  Even though an investigation conducted by the Consumer Product Safety Commission found that there was no correlation between the dry max technology and diaper rashes, the plaintiffs were able to reach a class action settlement in March 2011.

As part of the Procter & Gamble class action settlement, plaintiffs’ lawyers were awarded $2.73 million.  Moreover, $1,000 was awarded for each affected child, and the Pampers customers were given a refund on a box of diapers if they were able to provide an original receipt and a UPC code.

Procter & Gamble Class Action Settlement Overturned

The 6th Circuit federal appeals court has overturned the class action settlement.  In its opinion, the court indicated that courts need to be cautious for signs that “the settlement negotiations have been affected by the lawyers’ pursuit of their own self-interests.”  It went on to state, “the settlement agreement awards class counsel a fee of $2.73 million—this, in a case where counsel did not take a single deposition, serve a single request for written discovery, or even file a response to P&G’s motion to dismiss.”  The court further stated, “the agreement provides unnamed class members a medley of injunctive relief.”  The court is hesitant to award this type of relief and states “we must scrutinize that relief to determine whether the fee award amounts to preferential treatment.”

Click to read the 6th Circuit federal appeals court’s opinion.

Click to speak to a products liability attorney.

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