Labor and employment and consumer fraud matters remain the two most common types of class actions. Together, they have driven the bulk of class action spending over the last five years. The 2019 Carlton Fields Class Action Survey reports that labor and employment class actions accounted for 28.7% of matters and 26.1% of spending (up 4% from 2017), and consumer fraud class actions accounted for 24% of matters and 23.6% of spending (an increase of nearly 6%). Product ... Keep Reading »
Archives for December 2019
Class Action Survey: Is AFA Use in Class Actions Increasing, Decreasing, or the Same as Last Year?
The use of alternative fee arrangements (AFAs) in class action matters continues to fluctuate, according to the 2019 Carlton Fields Class Action Survey. Companies rely on AFAs as a tool to drive budget predictability and litigation management efficiency. In the class action context, however, the use of AFAs tends to fluctuate year over year. After companies reported increased use of AFAs for three years in a row between 2011 and 2015, in subsequent years, the percentage ... Keep Reading »
Class Action Survey: What Percentage of Class Action Lawsuits Are Settled? When do Most Settlements Occur?
Cases filed as class actions are most often resolved by settlement. The 2019 Carlton Fields Class Action Survey reports that settlement rates for class actions continue to rise, up to 73.1% in 2018 from 70.8% the previous year. More than half of settlements typically occur before a class certification. Thirty-nine percent of matters filed as class actions are settled on an individual basis. Only 2% of cases filed as class actions go to trial. ... Keep Reading »
Class Action Survey: True or False? The Amount of Time In-House Attorneys Spent Managing Class Actions Has Increased.
False! In-house attorneys spent approximately 20 hours per week dedicated to the defense of class actions. This is a decrease of approximately two hours per week from 2017, but remains high considering companies reported that their in-house lawyers spent only 13 hours per week on class action matters just two years ago. However, the decrease in hours is offset by an increase of in-house staffing for class actions — the first increase in headcount in five years. The ... Keep Reading »
No Speaking? No Standing!
On November 15, the Eleventh Circuit decided Cordoba v. DirecTV, LLC, further exploring the issue of when class actions achieve Article III standing. The plaintiffs alleged that DirecTV and the company with which it contracted for telemarketing services, Telecel Marketing Solutions Inc., violated the FCC regulation that requires telemarketers to maintain an internal do not call list. The class consisted of people who allegedly were repeatedly contacted despite informing ... Keep Reading »