Frank v. Gaos, 586 U.S. ___ (2019), was a per curiam decision by the Supreme Court of the United States in a case concerning the practice of cy pres settlements in class action lawsuits.
"[2] Bloomberg News stated that Judge Davlia remarked that the lack of transparency in selecting the recipients of the money "raises a red flag" and "doesn’t pass the smell test", although it was nonetheless approved.
"[7][6] As Brian Miller of the Center for Individual Rights, in an opinion piece for Forbes, summarized the problem:[8] Since our justice system is adversarial, it works best when the parties vigorously represent their interests in court.
[3][9] The Court gives the following as the question presented in this case:[3] Federal Rule of Civil Procedure 23(b)(3) permits representatives to maintain a class action where so doing "is superior to other available methods for fairly and efficiently adjudicating the controversy," and Rule 23(e)(2) requires that a settlement that binds class members must be 'fair, reasonable, and adequate.'
In this case, the Ninth Circuit upheld approval of an $8.5 million settlement that disposed of absent class members' claims while providing them zero monetary relief.
[11][12] The justices were divided along partisan lines based on observers' opinions, with the liberal justices supporting the cy pres approach used, while the conservative members felt the cy pres decision denied the class members their restitution and were critical of how much of the settlement went to legal fees.
[13] Writing for SCOTUSblog, Ronald Mann noted that at oral argument "all seemed to agree that the district court’s reasoning could not withstand scrutiny under Spokeo.