
Class Action Settlements Serve Lawyers Over Class Members
Lawsuit abuse across the U.S. results in more than $160 billion in excessive tort costs
Lawyers representing class action cases in 2019 and 2020 received from settlements, on average, 10% more than the classes they represented, according to a new report.
The report, issued by the Jones Day law firm, found that in one 2020 case, attorneys received almost four times as much as the class members. That case was Brickman v. Fitbit (a case in which the defendant allegedly misrepresented the ability of Fitbit watches to accurately track users’ sleep), class counsel received $7,065,940 in attorneys’ fees and litigation costs while only $1,768,625 was allocated to the settlement class.
“Class action settlements far too often provide little to no benefit to class members, but instead serve to enrich the trial lawyers who bring the suits,” American Tort Reform Association President Tiger Joyce said. “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.”
Lawsuit abuse across the U.S. results in more than $160 billion in excessive tort costs, meaning every American pays approximately $488 each year in a “tort tax.” Tort costs impact 2,211,450 jobs across the country, with an estimated loss of $143.8 million in wages.
Want more updates on civil justice reform? Sign up for ATRA’s occasional email updates.
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
These strong but fair laws will solidify Florida as a model of a forward-looking state with a judicial system that is transparent, fair and accountable for all.
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