NEW YORK, April 23, 2002 (PRIMEZONE) -- The law firm of Kirby McInerney & Squire, LLP announced that the U.S. Court of Appeals for the Seventh Circuit reversed the approval of a class action settlement in Reynolds, et al. v. Beneficial National Bank, H&R Block, et al. This lawsuit arose out of loans made in anticipation of tax refunds. These loans were made jointly by Beneficial National Bank (NYSE:HI) and H&R Block (NYSE:HRB), the principal defendants in the action. The effective annual interest rate on these loans frequently exceeds 100%, and the charges imposed on taxpayers frequently represent a substantial part of the expected tax refunds. The refunds often comprise most or all of a taxpayer's savings for that year.
Kirby McInerney, on behalf of a taxpayer who objected to the settlement, argued that the settlement should be rejected and the lower court judge replaced. Other opponents of the settlement included the Houston firm of Ellis, Carstarphen, Dougherty & Goldenthal P.C., and the Philadelphia firm of Levy, Angstreich, Finney, Baldante, Rubenstein & Coren, P.C.
The Court of Appeals found, among other things, that "the district judge abused his discretion in approving the settlement" and that "representation of the class was almost certainly inadequate, an independent reason for disapproving a settlement." Today's ruling also vacated an injunction against a Texas class action ready to go to trial against Block, and reassigned the action to a district judge other than the one who had approved the overturned settlement.
Kirby McInerney & Squire, LLP specializes in complex litigation, including consumer and securities class actions. The firm's efforts on behalf of consumers and shareholders have resulted in recoveries totaling hundreds of millions of dollars, and its achievements and quality of service have been noted in many published decisions.
Roger W. Kirby, Esq. Peter S. Linden, Esq. Joanne M. Cicala, Esq. KIRBY McINERNEY & SQUIRE, LLP 830 Third Avenue New York, New York 10022 Telephone: 212/371-6600 Facsimile: 212/751-2540 E-Mail: jcicala@kmslaw.com
More information on these and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.