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. In the News Today - May 26, 2020

    May 26, 2020 | News

    Class Action Lawyers Take Krab Vs. Crab Debate To Ninth Circuit... Read More

  2. In the News Today May 21, 2020

    May 21, 2020 | News

    As thalidomide lawsuits collapse, major plaintiffs firm is sued by own client... Read More

  3. ILR Briefly COVID-19 Series: State Liability Problems and Solutions

    May 21, 2020 | Research

    As states reopen and continue to respond to the needs of their citizens and economies, it is important that they consider offering liability protections to prevent a wave of COVID-19 lawsuits at the state level. This edition of ILR Briefly documents major hot spots for COVID-19 litigation under state law and provides an array of policy solutions to prevent lawsuits from disrupting states' economic recoveries.... Read More

  4. Taco Bell wins Chalupa price case after claiming lawyers doctored evidence, plaintiffs ignored menu

    April 27, 2020 | News

    A federal judge has ruled that the couple who sued Taco Bell because their Chalupa boxes cost 99 cents more than they thought failed to pay attention to the price on the menu, and that evidence presented by the plaintiff's lawyer may have been doctored, according to a report in Legal Newsline.... Read More

  5. In The News Today - April 22, 2020

    April 22, 2020 | News

    Second Circuit Tosses Dunkin' Donuts Class Action Over Meaning of 'Steak'... Read More

  6. In the News today - April 21, 2020

    April 21, 2020 | News

    Major League Baseball Sued by Fans Seeking Refunds... Read More

  7. Wegmans Faces Class Action Over Cake Mix

    April 10, 2020 | News

    Wegmans Food Markets Inc. was hit on Thursday with a proposed class action lawsuit alleging that its vanilla cake mixes are misleadingly labeled, according to a report in Law 360. ... Read More

  8. Class Action Lawyers Take More Money From Settlements Than Class Members

    April 09, 2020 | News

    A detailed examination of eight years of consumer class actions in federal court by Jones Day attorneys confirms that consumers received only a tiny fraction of the money awarded in class actions cases while plaintiff lawyers frequently claimed a bigger share of the settlement, according to a report in Legal Newsline.... Read More

  9. With Nationwide Hand Sanitizer Shortage, a New Lawsuit Claims Target Made Misleading Statements About Hand Sanitizer

    April 08, 2020 | News

    Alarm over coronavirus has caused a run on hand sanitizers. And now, sanitizers are exceedingly hard to come by, but even with this shortage a woman in California has filed a class action lawsuit against Target over their hand sanitizer according to a report in Legal Newsline.... Read More

  10. Trial Lawyers Are Already Trying To Cash In On Coronavirus

    April 06, 2020 | News

    Trial lawyers have already sued cruise ship operators, soap manufacturers and insurance companies, but COVID-19 will give them plenty more opportunities to make money, according to a report in Legal Newsline.... Read More