Even that serves a purpose. If you view the case as specifically to
compensate people for the wrong, then it seems ridiculous, but if it's to make people feel like the company had to pay for their mistake and/or disincentivize the behavior in that and other companies, it serves a purpose. Do lawyers get too large a cut? Possibly, but remember that they are sometimes going up against large companies with deep pockets, and these cases may cost lots of money. Do we want to incentivize law firms to take these cases, even if they may not pay off? Yes. Do we want to incentivize them so much that they seek out claimants to create lawsuits for? Probably not, but again, if it keeps companies from trying to circumvent the law, it may not be entirely a bad thing.
> The lawyer gets free hands ... The lawyer's cut is $3 million in legal fees, paid by the company to avoid a larger settlement
AFAIK there has to be actual named defendants that represent the class, and they would decide on whether to accept a settlement. The lawyers can only advise, not decide. I'm by no means an expert though.
Edit: Clarified what I was responding to in second part by including more context.