A report from the Empire Center for Public Policy said frivolous class action lawsuits lead to “higher auto insurance rates, higher health care costs and higher taxes,” reports the New York Post.
The report points to New York lawyer C.K. Lee as an example of class action abuse. According to the article, Lee has filed more than 1,000 class actions in New York City courts since 2009. In one case, the judge said Lee’s lawsuit “does not pass the laugh test.”
The article also details numerous cases in which the plaintiffs’ lawyers took the lion’s share of a class action settlement. In one example, lawyer fees and administrative costs in a $115 million settlement totaled $64 million dollars. This left consumers with about $1 apiece.