Judge Sees ‘Red-Flags of Collusion’ in FLSA Class Settlement

A Fair Labor Standards Act class action settlement with Language Line Services Inc. has been rejected again despite some improvement from a previous draft.

Several “red-flags of collusion” remained in the revised settlement that made Judge Greg Kays more concerned than he “was previously that Plaintiff’s counsel may be less interested in litigating the class members’ claims than leveraging them to collect a large fee for minimal work.”

Derek Rouse alleged that the language translation company failed to pay him and other traveling trainers for work they were expected to do during flights.

Though the revised settlement removed provisions ...