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Court Denies Appeal in Cy Pres Matter Over Objection that Settlement Fails to Provide Relief to Class Members

The Ninth Circuit has refused to hear an appeal in a case involving a class-action lawsuit over Facebook’s Beacon program, which disclosed personal information without user consent. "Cy pres" ("as near as possible") is a legal doctrine that allows courts to allocate funds to protect the interests of individuals when there is a class action settlement. Courts typically provide cy pres awards that reflect the reason for the litigation and are aligned with the interests of class members. In the Facebook case the court chose instead to provide the funds to a new foundation created by Facebook, which was appealed. Six judges dissented from the denial, writing that "the majority in this case creates a significant loophole in our case law that will confuse litigants and judges, while endorsing cy pres settlements that in no way benefit class members." EPIC previously highlighted the dangers of improper cy pres distributions in settlements. For more information, see EPIC: Fraley v. Facebook, EPIC: Lane v. Facebook, and EPIC: In re: Google Buzz.

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