Judge OKs class-action settlement over Skechers
National News
A federal judge approved a $40 million class-action settlement Monday between Skechers USA Inc. and consumers who bought toning shoes after ads made unfounded claims that the footwear would help people lose weight and strengthen muscles.
U.S. District Judge Thomas B. Russell in Louisville approved the deal, which covers more than 520,000 claims. About 1,000 people eligible for coverage by the settlement opted not to take part.
Those with approved claims will be able to get a maximum repayment for their purchase _ up to $80 per pair of Shape-Ups; $84 per pair of Resistance Runner shoes; up to $54 per pair of Podded Sole Shoes; and $40 per pair of Tone-Ups.
Russell also awarded $5 million for the attorneys in the case to split. Russell ordered that the money cannot come from the $40 million settlement fund set aside for consumers.
Two people that served as the lead plaintiffs in the case will receive payments of $2,500 each.
Russell considered multiple factors in deciding to approve the settlement and found it provides just compensation to the plaintiffs.
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Workers’ Compensation Subrogation of Administrative Fees and Costs
When a worker covered by workers’ compensation makes a claim against a third party, the workers’ compensation insurance retains the right to subrogate against any recovery from that third party for all benefits paid to or on behalf of a claimant injured at work. When subrogating for more than basic medical and indemnity benefits, the Texas workers’ compensation subrogation statute provides that “the net amount recovered by a claimant in a third‑party action shall be used to reimburse the carrier for benefits, including medical benefits that have been paid for the compensable injury.” TX Labor Code § 417.002.
In fact, all 50 states provide for similar subrogation. However, none of them precisely outlines which payments or costs paid by a compensation carrier constitute “compensation” and can be recovered. The result is industry-wide confusion and an ongoing debate and argument with claimants’ attorneys over what can and can’t be included in a carrier’s lien for recovery purposes.
In addition to medical expenses, death benefits, funeral costs and/or indemnity benefits for lost wages and loss of earning capacity resulting from a compensable injury, workers’ compensation insurance carriers also expend considerable dollars for case management costs, medical bill audit fees, rehabilitation benefits, nurse case worker fees, and other similar fees. They also incur other expenses in conjunction with the handling and adjusting of workers’ compensation claims. Workers’ compensation carriers typically assert, of course, that, they are entitled to reimbursement for such expenditures when it recovers its workers’ compensation lien. Injured workers and their attorneys disagree.