Another day, another class-action lawsuit. Even if you’re not in the legal field, you’ve seen the billboard and social media ads or even received a mailer identifying you as a potential plaintiff in a class-action lawsuit, a type of civil legal case where one or more plaintiffs file a lawsuit on behalf of a larger group of people.
It’s unsurprising: class-action lawsuits have increased dramatically in recent years, with over 10,000 lawsuits filed in 2023 alone. Settlement amounts are also reaching dizzying highs: in 2024 they reached $42 billion. And the hunger for class-action lawsuits is showing no sign of satiation.
So, what’s changed specifically to lead to the uptick in such cases? There are several factors at play. The quickly shifting technological landscape is one: with tech companies having access to broad swaths of consumer data, data breaches, and privacy concerns are a common class-action target. Growing awareness of consumer rights is another factor – together with an increase in labor disputes and activism. Additional factors include the use of AI in discovery and the ease with which potential plaintiffs can be contacted via targeted social media advertising.
The growing trend towards class-action suits is something that businesses should be mindful of. A 2024 study showed that labor and employment class or collective action suits rose 10% in 2023, with nearly four in five companies surveyed mentioning that they’d faced a labor-related class action suit in the prior five years. Securities class action suits are similarly on the rise, increasing 14% from 2023-24. The current legal environment tends towards being plaintiff-friendly – especially in areas related to data breaches, privacy, and ESG (environmental, social, and governance).
With class-action lawsuits showing no sign of diminishing – and with the financial and PR repercussions of these suits only growing – organizations should work proactively to defend against a potential suit. Guided by legal expertise, robust business insurance, HR policies, regular audits and assessments, and regularly updated ESG policies can reduce the risk of a class-action suit. Additionally, engaging an attorney with experience in dispute resolution can help provide a path forward for navigating litigation and claims without the need to go to trial.
Do you have questions about a class-action lawsuit or protecting your business from a potential lawsuit? Whether you’re an individual or group representative with questions about filing a suit, or you’re an organization facing action, engaging experienced legal guidance is vital. At Warner PLLC, we work extensively in labor and employment law and litigation, with wide-ranging experience in the government contractors, tech and startup spaces. For tailored legal guidance, contact our attorneys today.
