Report: Court overturns $1 million RadioShack receipt settlement

Fort Worth, Texas – A class-action settlement RadioShack Corp. reached with consumers that offered them $10 vouchers as compensation for printing their credit and debit card expiration dates on receipts has reportedly been overturned by the 7th U.S. Circuit Court of Appeals in Chicago. According to Reuters, a panel of three federal judges said the total $1 million settlement is too small considering the amount of legal fees that must be paid.



The judges also said that the possibility of RadioShack going bankrupt, which would prevent plaintiffs from collecting anything, may have hastened them into accepting an unfair settlement while the company is open. In addition, the judges said many vouchers may never be redeemed, further reducing the settlement’s value.



"We built protections into this settlement in the event RadioShack were to file for bankruptcy, and believed the alternative to this settlement was that the class would get nothing," said Paul Markoff, an attorney for the plaintiffs. "Now that the settlement has been thrown out, that may be the most likely scenario."



RadioShack did not comment.