Class-action lawsuits on the rise, survey finds

By: DOLAN MEDIA NEWSWIRES//June 7, 2012//

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The Florida law firm Carlton Fields recently polled more than 300 corporate attorneys on class-action lawsuits, and respondents are predicting an increase in the number of suits filed this year.

Responding attorneys said they expect to see about 5.4 class action suits per company, up from 4.4 in 2011.

As for where the suits will come from, the respondents said:

30 percent: labor and employment
15 percent: consumer fraud and privacy
15 percent: product liability
8.3 percent: Dodd-Frank related issues
6.7 percent: securities
5 percent: insurance

Respondents said they planned to spend less money on class action suits this year, however, by about 17 percent, to an average of $645,800 per class action compared to $776,500 last year.

To cut back on spending, companies said they will use more alternative fee arrangements to defend class actions and “manage outside counsel terms and expectations.”

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