Class actions can make or break a business. One day you’re serving up happy customers, and the next you’re trying to settle a lawsuit for millions.
In fact, class action settlements totaled an astonishing $42 billion in 2024. That’s the third year in a row the total has surpassed $40 billion.
Talk about a wake-up call.
But here’s the thing…
Most businesses are woefully unprepared to deal with this kind of exposure. They vastly underestimate both the complexity and the potential financial impact. And it’s not until they get burned that they realize their mistake.
Let’s take a closer look at how litigation attorneys view these lawsuits. And what you need to do to be prepared.
What you’ll discover:
- Why class actions are on the rise
- How litigation attorneys approach these cases
- Key strategies for managing class action defense
- The mistakes that cost companies millions in damages
Understanding the Class Action Landscape
First things first. Class action lawsuits aren’t going anywhere.
Federal securities class action suits reached 229 filings in 2024, equal to the 2023 level. And that’s just one type of class action. Throw in employment disputes, data breaches, consumer protection claims, and product liability cases…and the numbers skyrocket.
The reason? Simple. The potential payouts in these cases are huge. Plaintiffs’ attorneys are aggressive and well-funded. And technology has made it easier to identify potential class members. The result is a surge in class action filings. We see this with companies of all sizes.
The Problem With Most Companies’ Class Action Defense
The typical company thinks they can handle a class action lawsuit on their own. They believe it will be similar to an individual case. But it’s not.
Dealing with one plaintiff is very different than representing thousands of class members who claim to have been wronged in the same way. Class actions require a different mindset. They have unique procedural requirements that trip up the unprepared.
Here’s where you need a litigation attorney who knows what they’re doing. A skilled lawyer can provide specialized expertise in areas like:
- Early case assessment to evaluate risks and defenses
- Fighting class certification
- Managing the discovery process
- Handling settlement negotiations
Why getting the right legal assistance early is so important
One of the most important things business owners need to understand is this…
If you get the right legal help early, you could save yourself millions of dollars.
You might be thinking, “Can’t we just hire any old lawyer and be done with it?”
No, that’s exactly what you don’t want to do.
A litigation attorney who has experience with class actions will know how to evaluate your risk, build a strong defense strategy, and work through the complex procedural requirements unique to these cases.
Here’s an example…
Say you’re a business owner who suspects you might be facing a class action lawsuit. What do you do?
Do you take a chance and hope for the best? Or do you reach out to a skilled litigation attorney right away?
The choice is clear.
But here’s the thing…
The longer you wait to get help, the more damage is done. You need to move quickly to protect your business.
You should visit www.dmduree.net to get help from the litigation attorneys you need. You’ll find a group of skilled professionals with extensive experience handling class actions for clients of all sizes.
They know what works. And what doesn’t.
So don’t wait until it’s too late. The earlier you bring in a litigation attorney, the better off your company will be.
How Litigation Attorneys Manage Class Action Defense
One of the key things litigation attorneys do differently with class actions is understanding the unique procedural requirements these cases entail.
Here are some ways they help manage class action defense:
Early Case Assessment
The first thing a skilled litigation attorney does is conduct an early case assessment. This includes a thorough review of the plaintiff’s claims, potential defenses, class certification issues, and an estimate of potential exposure.
This assessment helps both you and the attorney understand the case’s true nature. Sometimes what looks like a strong plaintiff’s case falls apart under scrutiny.
Fighting Class Certification
Defeating class certification can often be the best way to win a class action lawsuit. If the court denies certification of the class, the case typically dies at that point.
Individual plaintiffs usually do not have the resources to litigate their claims without the ability to aggregate them into a class action.
A litigation attorney will focus on challenging certification by showing the claims are not similar enough across class members, individual issues predominate over common questions, or that the proposed class is not clearly defined.
Discovery Management
Discovery in class actions can be massive. You might need to produce millions of documents and sit for dozens of depositions.
Without careful management, the cost of discovery can spiral out of control. A litigation attorney will negotiate reasonable discovery limits, use technology to review documents efficiently, and protect privileged information.
Effective discovery management keeps costs down while still building a solid defense.
Settlement Negotiations
Sometimes fighting a class action just isn’t the best strategy.
Even if you believe you can win, the cost of litigation might exceed a reasonable settlement amount. Plus class actions cause ongoing distraction and negative publicity that can harm your business.
A litigation attorney will help you evaluate settlement offers objectively by weighing the strength of your defenses against the potential damages you could be liable for and the cost of continued litigation.
Key Mistakes To Avoid In Class Action Defense
Most class action defenses fail for one of these reasons:
- Poor document management
- Inconsistent application of company policies
- Delayed response time
- Lack of specialized legal expertise
We’ll take a deeper dive into these common pitfalls. And why a litigation attorney is so important in preventing them.
Mistake #1: Destroying Relevant Documents
Here’s one mistake that can sink a class action defense in a hurry…
Once litigation is “reasonably anticipated” you have a duty to preserve relevant documents. Destroying emails, texts, or other potentially important records can result in sanctions – or even worse, an instruction to the jury that they should assume the destroyed documents would have been harmful to your case.
Mistake #2: Inconsistent Application of Policies
Good policies on paper won’t help if they are not applied consistently. Plaintiffs’ attorneys will look for any exceptions or times you didn’t enforce the rules. Then they will try to argue these examples prove class-wide violations.
Mistake #3: Failing To Act Quickly
Time is never on your side in a class action. The longer you wait, the more time the plaintiff’s lawyers have to build their case and recruit class members.
A quick response, often with early intervention by a litigation attorney, gives you the best chance of containing the damage.
Mistake #4: Handling It Yourself
It’s common for businesses to try to manage class action defense with in-house counsel or attorneys that don’t specialize in this area of the law. Don’t do it.
Class actions have unique procedural rules and strategic considerations. These are not small cases. You need specialized expertise to handle them effectively.
Building a Proactive Defense Strategy
The best class action defense is the one you never have to deal with.
Work with a litigation attorney to audit your practices and policies. Look for vulnerabilities before plaintiffs’ attorneys do. This could include reviewing employment policies, making sure you have proper consumer disclosures, implementing strong data security practices, and keeping clear records of compliance efforts.
These preventive measures won’t make your business class-action proof. But they will put you in a much better position if a lawsuit is filed.
Wrapping Things Up
Class action lawsuits are a serious threat to businesses of all sizes. The stakes are high, with total annual settlements regularly exceeding $40 billion.
Don’t make the mistake of thinking you can handle this on your own. You need experienced litigation attorneys on your side. They understand how to manage class action defense from fighting certification to discovery to settlement.
Most importantly, they can help you put proactive measures in place that will reduce your exposure before the problems start.
So don’t wait until you’re sued to seek legal help. The decisions you make today will determine whether you face a manageable dispute or a business-ending lawsuit tomorrow.
