Obama Calls Out Bankers; But What About the Class Action Lawyers Mr. President?

President Obama's plan to reign in excessive compensation paid to the nation's bankers has focused attention on how this country's financial elite have unfairly enriched themselves at the expense of their shareholders. The bankers received huge bonuses even though their companies' stock had fallen dramatically. But it isn't only our nation's bankers who are receiving huge paychecks for subpar results. The nation's class action plaintiffs' lawyers regularly receive huge bonuses for winning less than stellar results for their clients - "enriching" class members with coupons they don't want, extended warranties they will never use, and, in the case of securities class actions, mere pennies in recoveries for each dollar of damage that their clients are alleged to have suffered.

Unfortunately, Mr. President, don't expect a public outcry over this problem. The practices of the class action lawyers are cleverly disguised so that few people know about this problem. Class action settlement notices, written in legalese, are for the most part treated like junk mail and thrown in the garbage. But if there is to be increased oversight of executive pay at the nation's banks, shouldn't there be increased scrutiny of the exorbitant attorneys fees being collected by the nation's class action plaintiff's lawyers. The pay scale of these lawyers is insulting to hardworking Americans, particularly during these times of economic dislocation, and needs reform.

More...