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Rise in Class Action Defense Spending Continues for Third Consecutive YearThe seventh annual Carlton Fields Class Action Survey confirms that class action defense spending continues to rise - and, in fact, has reached its highest level since 2010. It was the third consecutive annual rise in spending after steadily decreasing expenditures from 2011 to 2014. The upward trend is expected to continue as companies across multiple industries spent $2.24 billion defending class action lawsuits in 2017, with spending projected to reach a high of $2.39 billion in 2018. Survey respondents reported their average spend per class action increased substantially over the past two years, even as the overall number of class action cases per company remained consistent. These and other results of the 2018 Carlton Fields Class Action Survey were compiled from 411 interviews with general counsel, chief legal officers, and direct reports to general counsel at 385 companies in multiple industries. The number of companies managing class action cases rose to 59 percent in 2017 up from 53.8 percent in 2016. Likewise, the overall risk faced by respondent companies increased. The combined volume of bet-the-company and high-risk matters ticked up to 26.2 percent in 2017. "We see evidence of steadily increasing volume and complexity," said Julianna McCabe, director of Carlton Fields' Class Action Survey and chair of the firm's National Class Actions practice group. "Defending class action litigation is indeed an ongoing challenge for most American companies, testing corporate resolve and straining corporate resources." This year's survey found that labor and employment (particularly, wage and hour litigation), consumer fraud, product liability, and antitrust matters collectively accounted for two-thirds of class action spending by respondents, with data privacy and security matters lurking as a potential next wave in 2018. Internet-connected products, such as medical devices and home appliances, are one significant source of concern associated with potential data breach litigation in the near uture. Among additional findings:
The Carlton Fields Class Action Survey is widely recognized as a powerful resource for in-house counsel who want to manage class actions effectively and efficiently. Participating companies in the 2018 survey had average annual revenue of $13.9 billion and median annual revenue of $5.9 billion. The surveyed companies operate in more than 25 industries, including banking and financial services, consumer goods, energy, high tech, insurance, manufacturing, pharmaceuticals, professional services, and retail. DOWNLOAD THE REPORT NOW TO LEARN MORE. Read theĀ Carlton Fields Class Action Blog. About Carlton Fields: Carlton Fields has more than 300 attorneys and government and financial services consultants serving clients from offices in California, Connecticut, Florida, Georgia, New York, and Washington, D.C. The firm is known for its national litigation practice, including class action defense, trial practice, white-collar representation, and high-stakes appeals; its insurance practice, including life and financial lines, property and casualty, reinsurance, and title insurance; its regulatory practice; and its handling of sophisticated business transactions and corporate counseling for domestic and international clients. For additional information, visit www.carltonfields.com. (Carlton Fields practices law in California through Carlton Fields Jorden Burt, LLP.)
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