Yesterday, Judge Anita Brody of the Eastern District of Pennsylvania, who oversees the consolidated NFL concussion litigation, issued an order denying preliminary approval to the $760 million (not including class action or MDL attorney’s fees) settlement reached last fall and detailed in a filing earlier this month. The settlement had already raised complaints that it was inadequate. Although the awards ranged up to $5 million (e.g., for a player who played for five years or more and was then diagnosed with ALS before age 45), it seemed that the bulk of the awards would be much lower (e.g., under $600,000 for long-time NFL players diagnosed with moderate dementia after age 60).
But that wasn’t why Judge Brody denied preliminary approval. The primary issue identified by Judge Brody is not, to me, a very big deal: based on the size of the award fund, she wrote, it seems possible that “not all Retired NFL Football Players who ultimately receive a Qualifying Diagnosis or their related claimants will be paid.” Given the sizes of the awards and the number of potentially qualifying plaintiffs, “it is difficult to see how the Monetary Award Fund would have the funds available over its lifespan to pay all claimants at these significant award levels.” Although the retired federal judge who mediated the settlement (Judge Layn Phillips) said that there were a variety of economic and actuarial analyses showing the adequacy of the fund, none of that was presented to the court, and so Judge Brody did not have enough of a record to preliminarily approve the settlement.
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