Boies Schiller Flexner filed three class actions this week, alleging a “deceptive and anticompetitive scheme” in which the nation’s largest claims administrators received undisclosed kickbacks to deposit hundreds of millions of dollars in class action settlements with Huntington National Bank and Western Alliance Bank.
The class actions, filed in federal courts in California, New York and Florida, allege that Epiq Systems Inc., Angeion Group LLC and JND Legal Administration conspired with the banks, which paid undisclosed kickbacks, reducing interest rates for hundreds of thousands of class members. The suits come about one month after another class action accused the same three claims administrators, which control 65% of the class action settlement administration market, of getting kickbacks from financial technology companies that disburse digital payments to class members.