Class Action Abuse

Class Action Abuse and California Lawsuit Abuse

“A class action is a form of lawsuit where a group of people claiming similar injuries or damages sue the same company or organization. Class actions were originally designed to benefit individuals by allowing them to more easily join together and seek efficient legal relief. However, in today’s legal system, many class actions are intended not to seek justice but to essentially shakedown a defendant – hurting businesses and damaging the American economy.” More about Class Action Abuse

Lawsuit Abuse Impact
“The United States is the world leader in lawsuits, which cost the U.S. economy $264 billion per year – or about $850 per year for every man, woman and child in the United States. That hurts families, businesses, local communities – and America’s ability to compete in the global economy.”  More about Lawsuit Abuse Impact 

“Lawsuit with Zero-Percent Merit 
“This year legal observers were treated to an epic battle between Taco Bell and out-of-state personal injury lawyers hoping to capitalize on California’s easily exploited consumer protection law and appetite for ridiculous class actions. Ultimately, their lawsuit wilted faster than shredded lettuce under a heat lamp and the lawyers ran for the border.”

More Links

Forbes Magazine Article: Study Shows Consumer Class-Action Lawyers Earn Millions, Clients Little 
“Corporate chief executives deem the once Golden State the very worst state in America for business, and perhaps no other state more clearly illustrates the direct impact of excessive litigation on job creation and the ability of businesses to survive and thrive. Unlike legislatures in most other states, California’s General Assembly rarely acts to limit lawsuit abuse. For instance, California, like Florida, is among the few states that continue to apply an insufficiently rigorous standard for the admission of purported expert testimony and, as discussed below, despite a critical need to do so, its courts are powerless to stop “vexatious” litigants. With the nation’s second highest state unemployment rate (as of this report’s production deadline), evidence suggests that California may be losing jobs to tort-reforming Texas, which has promoted a pro-business environment with tort reform and other policies. Though voters have occasionally taken matters into their own hands, directly passing reform referenda at the ballot box, the effectiveness of such reforms is sometimes eroded by periodic waves of liability-expansion that emanate from the California Supreme Court. While Los Angeles County historically has been the most lawsuit-loving jurisdiction, this job-killing embrace of litigiousness is steadily spreading to tarnish much of the once Golden State”

“Small business summer tour highlights impact of lawsuit abuse on small business owners”


“Legal tide turning against lawyers who profit illegally from class-action lawsuits

Forbes Magazine Article:  Judge Tosses scam Class Action  “Plaintiff lawyers represent a class of clients who frequently don’t even know the lawsuit, or their supposed attorney, exist. That attorney is supposedly monitored by representative plaintiffs who frequently have close and undisclosed ties to the plaintiff lawyers. Defendant companies just want an end to the litigation and know they can get it by negotiating a fee. And judges like Zabel can’t be bothered to do their jobs in closely examining settlement terms, either because they believe they are presiding over an adversarial process, as Posner charitably put it, or because they want these cases off their docket.”

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