
Covid Class Actions Surge – 90% Receive No Benefit
As trial lawyers begin to capitalize on the coronavirus pandemic by filing class action lawsuits alleging consumer fraud, a new report reveals that more than 90% of class members in consumer fraud cases receive no benefit whatsoever from this type of litigation.
As trial lawyers begin to capitalize on the coronavirus pandemic by filing class action lawsuits alleging consumer fraud, a new report reveals that more than 90% of class members in consumer fraud cases receive no benefit whatsoever from this type of litigation.
The report, issued by the Jones Day law firm, found that the median participation rate of class members was less than 3.5%.
The report also analyzed various frivolous class action lawsuits often highlighted in the Judicial Hellholes report. For example, their research found that a settlement regarding the alleged misrepresentation of battery life resulted in a participation rate of less than 1% of class members.
ATRA has long believed that class action settlements provide little or no benefit to class members, but instead serve to enrich the trial lawyers who bring the suits. While certain class actions have their place in the legal system, overall, the system should be reformed to address abuse by plaintiffs’ lawyers particularly when they use uninjured consumers as a tool to drive class actions, settlements and large fee awards.
Read ATRA President Tiger Joyce’s op-ed, “ClassAction Conundrum.”
Share this online:
Latest News
View all news
More Work Remains on Tort Reform
This letter-to-the-editor was originally published by The Herald-Dispatch in Huntington, WV. West Virginia was a mainstay on the American Tort Reform Foundation’s “Judicial Hellholes®” list for nearly 20 years, finally […]
Fla.’s Legal Reform Package Makes It a Judicial Hellholes Point of Light
This op-ed was originally published by DC Journal – Inside Sources. With Florida’s 2023 legislative session in the rearview mirror, Gov. Ron DeSantis remains under a microscope with pundits and […]
Lawmakers Denounced for Pushing Punitive Damages in Last-Minute Amendment
Illinois Businesses Brace for Increased Costs and Diminished Appeal as Trial Bar Pushes for Punitive Damages in Wrongful Death Cases
ATRA President Tiger Joyce on WFLA-FM Tallahassee
ATRA President Tiger Joyce discusses Florida’s 2023 legal reform successes with Preston Scott on WFLA-FM Tallahassee.
Florida Named Judicial Hellholes Point of Light, DeSantis’s Efforts Praised
2023 legislative session resulted in landmark legal reforms, ATRF says
New Florida Bill to Regulate Misleading Legal Services Ads on Pharmaceutical Drugs and Medical Devices
ATRA’s Latest Data Reveals $271.8 Million Spent on Legal Services Advertising in Florida in 2022; Florida Accounted for Nearly 20% of Radio Ad Spending Nationwide