(ThyBlackMan.com) America is witnessing the exponential growth of an entire new industry. This industry is responsible for lining the pockets of the common man and striking a blow against large corporations. This new industry is the ‘class action lawsuit’.
The ideology behind these lawsuits is pretty simple, by allowing victims to team up, they provide strength in numbers. As individuals, the success rate of taking on a large corporation is negligible. When you band together hundreds or thousands of these victims, the chances of success skyrocket. So from dodgy seat belts to medication that has left you with unforeseen side effects, holding the culprits responsible has never been easier. Click here to find out how to file a class-action lawsuit.
One factor in the sharp rise in the number of cases seen in America is litigation funding. This is where large investment companies invest in helping class-action lawsuits. As they are relatively low risk if the evidence is strong, they are happy to throw large amounts of money at the cause. Just last year, over 70% of all the class actions that went full term were funded by litigation funders.
The growth in class action lawsuits shows no sign of slowing down either. The increase is so powerful that to counter it, many large corporations are training specialist law divisions to protect them in the case of a class-action lawsuit.
Compromise Deals
Often, businesses will come to what is known as a compromise deal. Usually, meaning compensation will be offered outside of court to victims. This saves costs and hassle of a drawn-out court case. Being able to decide the compensation is often much more attractive to a corporation than unpredictable results, payouts, and stipulations put on them by the court.
When it comes to a lawsuit with hundreds of victims, even a small amount of financial compensation awarded to every victim can add up to monumental amounts. So turning that loss into something quantifiable is much safer.
Litigation Costs
The main problem seen with using litigation funders is that they will happily take up to 40% of the payout. Then you have to subtract the cost of the lawyers and cover their fees plus a healthy margin on top. After all of this, you are lucky if the compensation for all victims comes to more than 50% of the payout cost.
This is balanced out by the fact that most victims do not seek out any compensation without the backing of a big class-action lawsuit.
Conclusion
Class action lawsuits have become a very lucrative asset for high-end investors. If you look at the trends arising in America, it is one of the most attractive jurisdictions for class actions in the world.
Last year alone, settlements were awarded in excess of half a billion dollars.
Class actions are here to stay. People are gaining the power to take on the big man, and corporations are rightly quivering in their boots. No longer can a sizeable corporate organization bully the individual user.
Thanks for reading guys!
Staff Writer; Ron Jackson