NACA Releases Revised Standards and Guidelines for Litigating and Settling Consumer Class Actions

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The National Association of Consumer Advocates (NACA) has released its Revised Standards and Guidelines for Litigating and Settling Consumer Class Actions (Revised Guidelines), which update and substantially change the original Guidelines issued in 1997 and published in Federal Rules Decisions at 176 FRD 375.

The National Association of Consumer Advocates (NACA) has released its Revised Standards and Guidelines for Litigating and Settling Consumer Class Actions (Revised Guidelines), which update and substantially change the original Guidelines issued in 1997 and published in Federal Rules Decisions at 176 FRD 375.

NACA Executive Director Ira Rheingold said, “In the past decade, the class action landscape has changed, and new concerns have arisen. For example, use of class actions to address predatory home lending abuses has created unique problems. And use of mandatory arbitration to deny consumers their legal rights—including the right to sue—has risen exponentially.”

The Revised Guidelines are the product of months of consideration by legal services lawyers, public interest lawyers, and private lawyers, and comments from other lawyers and industry representatives.

The Revised Guidelines make changes to existing Guidelines, such as:

·    The appropriate amount of attorney’s fees when class actions are settled

·    The use of charitable contributions as an alternative to distribution of small amounts to class members

·    The problems with coupon or certificate settlements

The Revised Guidelines added new Guidelines, such as:

·    Special considerations in class actions involving homes

·    The role of objectors in class action settlements

·    The risks to justice posed by abusive arbitration clauses

Executive Director Rheingold added, “As times changed, NACA decided to update and revise the Guidelines to ensure that they continue to represent the highest current standards in ethical class action litigation.”

The complete Revised Guidelines are available on NACA’s website: http://naca.net/RevisedGuidelines090706.pdf.

For more information, contact NACA Executive Director Ira Rheingold, 202-452-1989 (ext. 101)[or NACA’s Chair Emeritus, Stephen Gardner, 214-827-2774 (ext. 111)].

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Cynthia Reddersen
NACA
202-452-1989
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