A close friend was recently solicited by a Las Vegas lawyer to join a class action lawsuit. The lawyer has asked for a $1,000 retainer.
This seems highly unusual. The class action lawsuit has already been filed. The lawsuit was filed On October 22, 2008.
Aren't you just part of the class action, by virtue of it having been filed? In other words, it's your duty to opt-out rather than to pay to opt-in. And since when do you pay to opt-in? Aren't you already in the lawsuit?
Something else is suspicious. The retainer agreement reads:
What is the client buying? An "initial evaluation"? Since when does a client pay $1,000 for an initial evaluation in a class action lawsuit that has already been filed?
The letter soliciting clients makes it very clear that the client must pay to opt-in to the class action. The letter states:
The terms of representation under a class-action are not expected to change: The payment of $1,000 upon signing of a retainer and 25% contingency fee upon successful recovery. If you wish to join, please contact our office using the information listed below.
This seems highly suspicious to me. Can anyone tell me why I'm wrong?
UPDATE: My friend sent the following e-mail to the lawyer:
My understanding is that, when a class action is filed, all aggrieved parties are included as part of the plaintiff class. Thus, it's up to me to opt-out of the class action, rather than to opt-in.
It seems that your solicitation is asking me pay $1,000 to opt-in to the class action.
How is that possible?
Am I currently a member of the plaintiff class? Or do I need to join money to join the class?
If I must pay $1,000 to become a member of the class, I guess I don't have much choice. If the $1,000 fee is for something else; or if I am not required to pay it to join the class action, I'd like to know.
The lawyer called my friend, and left a voice mail asking my friend to return his call. Why not just answer the questions in writing?
Nope; nothing shady going on here, folks.
