Ira, you're so right. This is one where the devil is in the details. If class counsel expects to get paid in full up front and the class payments are on the installment plan, I'll object.
Yes, that would be completely unreasonable -- so much so, I doubt they would even try it. I think a reasonable scheme would be for class counsel to recoup their expenses from the first installment, and then share the remainder of that installment, and each of the subsequent ones, pro rata with the class. So if their fees are 40%, and expenses are $400,000, they would get $400,000 plus 40% of $1.6M ($640K), for a total of $1.04M of the initial installment, and the class would get $960K of the initial installment. Then they would get $800K to the class's $1.2M of the second installment, and $1.2M to the class's $1.8M of the third and fourth installments.
In fact, I'm not comfortable with payments over time, particularly since I had to remind Prosper repeatedly about my $.76/mo on the ch 11 where Prosper didn't bother to make a claim.
Certainly troubling, but I think still reasonable with adequate assurances that the payments will be made. I think that personal guarantees by the individual defendants for the full amount of the payments would be best. They are deep-pocketed enough that there shouldn't be much risk of not getting paid. If that doesn't fly, then perhaps partial individual guarantees with additional guarantees by all of the various Prosper entities, along with a senior security interest in all of Prosper's assets, including all of its loans would be adequate.
Author
Topic: Prosper Class Action Suit Settled for $10 Million Over 3 Years (Read 5725397 times)