FleetBoston Financial Corp.’s $3.1
million settlement of claims it illegally provided telemarketers
with information about customers was thrown out by a U.S. appeals
court, which found the agreement “sold these 1.4 million
claimants down the river.”
U.S. Circuit Judge Richard A. Posner, writing for the three-
judge panel in Chicago, said the accord let the banking company’s
former mortgage unit off lightly and rewarded lawyers who brought
the lawsuit at the expense of borrowers.
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“Would it be too cynical to speculate that what may be
going on here is that class counsel wanted a settlement that
would give them a generous fee and Fleet wanted a settlement that
would extinguish 1.4 million claims against it at no cost to
itself?” Posner wrote, in a decision for the 7th U.S Circuit
Court of Appeals that sends the case back to the trial court.
Bloomberg News
