Cantu-Guerrero v. Lumber Liquidators, Inc., No. 18-2351 (4th Cir. 2020)
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Objectors filed consolidated appeals from the district court's order approving a class action settlement and order awarding attorney's fees to class counsel. The settlement approval order arose from two MDL proceedings related to Lumber Liquidator's sale of allegedly dangerous and defective laminate flooring.
The Fourth Circuit affirmed the settlement approval order, holding that the district court did not abuse its discretion in approving the settlement. In this case, the district court did not abuse its discretion in determining that the settlement was fair and adequate and, at bottom, the order thoughtfully assessed what the class members would give up in the proposed settlement and then explained why the tradeoff embodied in the settlement was fair, reasonable, and adequate. However, the court vacated the attorney's fee order, because the district court erred by failing to apply to the store vouchers the "coupon" settlement provisions of the Class Action Fairness Act of 2005. Accordingly, the court remanded with instructions.
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