Class actions have become increasingly more common in recent years as attorneys are choosing to represent businesses in complex litigation on a contingent fee basis, whereby they do not collect any fees until the plaintiff is successful in its claim.
Contingency class action business litigation is common in massive civil lawsuits involving allegations of unsafe pharmaceuticals, medical malpractice, asbestos claims, trademark infringement, and consumer fraud, to name a few. Most recently class action lawsuits have been filed against a number of large banks and financial institutions regarding allegations of fraudulent benchmark interest rates.
Advantages of Class Action
In order to evaluate whether it makes sense to seek class action status in connection with contingency business litigation, it is important to consider the pros and cons of class action lawsuits. Some of the advantages of class action lawsuits include:
• Pooling of resources, which reduces the individual costs of litigation
• Increased legal influence due to the strength in numbers
• Lack of upfront legal fees
Disadvantages of Class Action
While class actions make sense in some situations, they do have some disadvantages, such as:
• Smaller awards since plaintiffs receive only a portion of any settlement or verdict
• Less control over legal strategy and settlement terms
Does a Class Action Make Sense for You?
In some cases it makes sense for an injured party to join a class action, but in other cases a payout may be more substantial if the plaintiff pursues an individual claim. Whether a class action makes sense for contingency business litigation depends on the specific circumstances of the case and the decision should not be made lightly. It is important to consult with a knowledgeable class action lawyer before making any decisions about whether to join a class action or not. The skilled Chicago consumer protection attorneys at Lubin Austermuehle have considerable experience with both class action lawsuits and contingency business litigation. Our attorneys can help evaluate the pros and cons of joining a class action so that you can make an informed decision.
If you have questions about class action lawsuits or contingency business litigation, contact our office at (833) 306-4933 or (630) 333-0333 to schedule an appointment with one of our knowledgeable Chicago consumer protection attorneys.