Class Actions

Class actions developed as a form of litigation in which a group of people claiming similar injuries or damages could band together to sue the same defendant. Nowadays, however, these cases are often pursued with the sole intention to shakedown a defendant—hurting businesses and damaging the American economy. Read More...

The sheer size of some classes is enormous—thousands to sometimes, millions of individual claimants come together in single class actions. The large size of a proposed class could result in huge damage awards, making these cases very risky for businesses despite strong defenses. Consequently, once a court decides that a case can proceed as a class action, most defendants end up settling the case instead of risking a trial—even if they have not done anything wrong.

Unfortunately, plaintiffs’ lawyers have exploited businesses’ caution by filing many meritless class actions—all with the goal of scoring a jackpot settlement where consumers receive minuscule amounts, and lawyers walk away with huge fees. For example, the Telephone Consumer Protection Act (TCPA) and our securities laws have sparked enormous class action lawsuits that significantly damage legitimate American businesses all while benefiting plaintiff lawyers. Even more alarming are cy pres cases where some or all of the settlement proceeds go to a charity rather than the class members. The U.S. Department of Justice recently ramped up efforts to review abusive class action practices to curb further exploitation.

The Class Action Fairness Act of 2005 (CAFA) helped curb many class action abuses by moving most large, interstate class actions to federal courts, where examination of class actions is generally more rigorous than in state courts. To help address the problems not resolved by CAFA, the Institute for Legal Reform (ILR) believes The Fairness in Class Action Litigation Act (FICALA) would help to ensure that class actions are fulfilling their intended purpose. FICALA aims to bring fairness to the current state of class action litigation by closing various loopholes that increase meritless cases, limiting conflicts of interest between these plaintiffs’ attorneys and their class member clients, as well as bringing needed reforms to multidistrict litigation and fraudulent joinder standards.


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All Results for Class Actions

  1. Law Firm Defends No-Money Navient Settlement While Also Collecting $500K

    September 30, 2020 | News

    The law firms that negotiated a settlement of student-loan claims against Navient that pays class members nothing but yields lawyers $500,000 in fees defended the deal as providing non-monetary benefits for borrowers according to a report in Legal Newsline.... Read More

  2. McDonald Faces Suit Over Vanilla Flavor In Ice Cream

    September 22, 2020 | News

    McDonald's is facing a proposed class action in California federal court over its soft serve according to a report in Law360. The suit filed by Scott Craig Borison of Borison Firm LLC and Spencer Sheehan of Sheehan & Associates PC is the latest in a series of false ad suits centering on vanilla-flavored ice cream products.... Read More

  3. In Dissent, 9th Circ. Judge Rips Fees Equaling $6,700 An Hour

    September 03, 2020 | News

    In a split decision, the Ninth Circuit panel affirmed the approval of a $14.5 million attorney fee award in a class action over Bank of America's overdraft fees, with a dissenting judge criticizing the deal for awarding class counsel fees that come out to $6,700 per hour, according to a report in Law360.... Read More

  4. In the News Today - August 25, 2020

    August 25, 2020 | News

    Lawyers fight dismissal request of Frito-Lay in case over cheddar and sour cream chips... Read More

  5. In the News Today - August 21, 2020

    August 21, 2020 | News

    Class Action Lawyers Won't Quit Case Against The Impossible Whopper... Read More

  6. In the News Today - August 18, 2020

    August 18, 2020 | News

    Lawsuit: Carrot Cake Donuts Don't Have Carrot In Them... Read More

  7. In the News Today - August 17, 2020

    August 17, 2020 | News

    Maxwell House Coffee Is Facing Another Lawsuit Over How Much Coffee Their Cans Make... Read More

  8. Class Actions: Auto Insurers Didn't Offer Enough Premium Relief Amid COVID Lockdowns

    August 14, 2020 | News

    Even while offering a 15-20 percent discount to drivers, insurance companies in Illinois are still facing lawsuits alleging they have not provided enough relief, according to a report in Legal Newsline.... Read More

  9. In the News Today - August 12, 2020

    August 12, 2020 | News

    Lawsuit doubts Schwan's pizzas are "preservative free"... Read More

  10. In the News Today - August 6, 2020

    August 06, 2020 | News

    Maxwell House Becomes The Latest Target In a String Of Lawsuits Over Coffee Servings... Read More