Monday, January 19, 2009

Florida settles suit: $1 to each driver, $2.85 million to lawyers

Facing a $3.5 billion deficit next year, Florida desperately needs all the money it can get. But millions more will disappear because the state has settled a lawsuit that affects millions of motorists.
The Legislature will spend $10.4 million to settle a class action lawsuit over allegations that the state illegally sold drivers’ personal information to marketing firms over a four-year period in violation of a federal law barring the practice. The state made $27 million each year on the deal, according to the lawsuit.
The settlement to drivers?
$1.
Drivers who held a license, car registration or state-issued ID from June 1, 2000, through Sept. 30, 2004, will get a one-time credit of $1 when they register or renew a registration between July 1, 2009, and June 30, 2010.
"Just one dollar?" Sen. Gary Siplin, D-Orlando, asked in a committee hearing on the settlement.
The four South Florida motorists who sued will get $3,000 each, and five law firms that pursued the case for more than six years will divide $2.85-million in legal fees, which is separate from credits paid to consumers.
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