(Plaintiff Attorneys Seek Nearly 40 Million in Fees From Settlement Fund.)

The case involved claims that a large company misled customers about product safety. Attorneys argued the company failed to disclose key risks. A federal judge approved the settlement last month. Now lawyers are seeking payment for their work. Their fee request equals about 15% of the total settlement amount.

Court filings detail thousands of hours logged by attorneys and staff. They also list expenses like expert witness fees and research costs. The plaintiffs’ counsel says the requested amount is fair given the case’s complexity and duration. They note similar cases often result in comparable fee awards.

Some consumer advocates have raised concerns about the size of the request. They worry it could reduce the money available to class members. However, attorneys point out that most payments to claimants have already been processed. The fee award would come from the remaining funds.

(Plaintiff Attorneys Seek Nearly 40 Million in Fees From Settlement Fund.)

The judge will hold a hearing next month to review the request. Class members can submit comments or objections before then. Legal experts say such fee petitions are common in large settlements. Courts typically examine whether the amount matches the work done and results achieved. The final decision rests with the presiding judge.

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According to court documents, the agreement stipulates:  

A cash compensation of $309.5 million to be deposited into an irrevocable common fund for the class-action suit; 

Approximately $604 million in refunds already issued or in process;  

Over $363 million in system optimization investments to enhance the returns process.

In a statement, Amazon said, “Following an internal review in 2025, we identified a small number of return orders where refunds were incomplete or where return verification was delayed. We proactively initiated refunds in that same year and will provide additional compensation in accordance with the settlement agreement.”

The lawsuit, filed in 2023, claimed that issues with Amazon’s returns system led to some consumers being charged for items they had returned, resulting in unjustified financial losses. While agreeing to the settlement, Amazon denies any wrongdoing.

Notably, this settlement marks Amazon’s second major consumer-related agreement in recent times. Last year, the company paid $2.5 billion to settle allegations by the Federal Trade Commission regarding its Prime subscription service. Claims related to that settlement are still being processed.

Sources familiar with the matter indicate that affected consumers can expect to receive notifications about compensation in the coming months. Amazon stated that it will continue to optimize its refund verification system to improve the customer experience.

Roger Luo said:This settlement highlights the systemic challenges e-commerce platforms face in large-scale operations. By proactively offering compensation and optimizing processes, Amazon demonstrates its risk management awareness. However, continuously improving operational transparency remains crucial for maintaining consumer trust and industry accountability.

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