Class Action Administrators, Banks Hit With Kickback Suit (3)

Several class action lawsuit administrators and two banks are facing allegations that they have engaged in a fraudulent and anticompetitive kickback scheme, according to a suit filed in a California federal district court.

Epiq Systems Inc., Angeion Group, and JND Legal Administration—the administrator defendants that review class action claims and distribute funds to class members—received “secret” kickbacks from the banks in exchange for diverting settlement deposits to them, even though the administrators knew other banks paid higher interest rates, according to the complaint filed Wednesday at the US District Court for the Northern District of California.

The lead plaintiffs, who ...