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Archives for February 2020

Class Action Survey: What Percentage of Companies are Facing Class Actions in Which Exposure is Deemed Potentially Devastating?

by Carlton Fields

Today’s class actions continue to reflect high levels of risk, with riskier class actions on the rise. Across the board, the percentage of companies facing class actions that they consider complex, high-risk, or bet-the-company increased in 2018, while fewer companies report facing lower exposure cases. Each year since 2016, companies have categorized more than one-fourth of their class actions as either “bet-the-company” or “high-risk” matters. After decreasing in ... Keep Reading »

Class Action Survey: Corporate Counsel Report Big Changes in Use of Arbitration Clauses

by Carlton Fields

After the repeal of the Consumer Financial Protection Bureau’s rule banning the use of class action waivers in certain arbitration agreements, the percentage of companies using such waivers increased to 37.2% in 2017. As expected, the use of arbitration clauses increased in 2018, and the percentage of companies that included class action waivers in their arbitration clauses increased to nearly 50%. More companies now use arbitration clauses that bar class actions than in ... Keep Reading »

Class Action Survey: What is the Most Widely Used Condition of Class Action Settlements?

by Carlton Fields

According to the 2019 Carlton Fields Class Action Survey, affirmative claim requirements remain the most widely used condition of class action settlements. Nearly 79% of companies required an affirmative claim for payment as a class action settlement condition in 2018, a percentage that has incrementally, but steadily, increased over the last several years. Companies also were more likely in 2018 to differentiate among categories of class members, require a showing of ... Keep Reading »

Class Action Survey: What is the Role of Outside Counsel in Early Case Assessment? Nearly 75% of Counsel Rely on Outside Counsel to Help Them With This One Task

by Carlton Fields

More than 90% of companies continue to rely heavily on early case assessment with the help of outside counsel to contain costs and manage class action risk. As companies see an increase in the volume of class action matters and related exposure, they lean on outside counsel for a variety of early case assessment tasks and planning. While many companies have routinely used outside counsel to assess case facts and exposure and develop strategy, in this year’s 2019 Carlton ... Keep Reading »

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