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.”
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