Survey: Class Action Shareholder Lawsuits Are Expected To Rise Sharply In 2022
According to a report from the Valdosta Daily Times, U.S. companies are preparing for a steep rise in class action litigation—especially class action lawsuits that are being initiated by shareholders. A recent survey from a reputable organization found that corporate leaders are anticipating a 27 percent increase in class action litigation, the highest increase in more than a decade. In this article, our Miami shareholder dispute attorneys provide an overview of class action litigation in 2021 and the expectations for class action litigation.
Survey of Corporate Leaders: A Wave of Class Action Litigation is Coming
The results of the 2022 Carlton Fields Class Action Survey were released in late February. Conducted by a Washington D.C. based law firm, the survey is generally viewed as a good barometer for class action litigation. Notably, the report measures class action litigation spending for the previous year and expectations for the coming year. Here are three key things to take away from the survey:
- Record Increase in Class Action Defense Spending in 2021: The report estimates that American companies spent more than $3 billion defending class action lawsuits in 2021. It is the first time in the history of the survey that class action defense spending has been this high. Notably, that figure represents a more than 15 percent increase over the prior year.
- Corporate Leaders are Expecting Even More Class Action Claims: The rise in class action lawsuits is not expected to be contained to 2021. Not only are there many complex class action cases that are currently ongoing, but many leaders at top U.S. companies anticipate another wave of class action litigation in 2022. Indeed, they expect the class action caseload to rise by nearly 30 percent in the coming year.
- Shareholder Litigation is Driving Much of the Rise: Class action claim can be filed for many different reasons. To get class certification, plaintiffs need to prove that there are a large number of parties who have substantially similar claims against the defendant. The report emphasizes that a significant share of the increase is because of a rise in shareholder litigation.
Many shareholder claims are pursued as class actions—especially when minority shareholders are bringing a claim against a large company. There are several potential benefits to pursuing a shareholder dispute as a class action claim. It can be more expeditious and cost effective. It also allows minority shareholders to get into a better bargaining position against a powerful company.
Consult With a Class Action Shareholder Litigation Attorney in South Florida
At Pike & Lustig, LLP, our Florida commercial litigation lawyers have deep experience representing clients in shareholder disputes. Our attorneys are devoted to helping clients find the best solution for their specific situation. Are you preparing for class action shareholder litigation? We will protect your financial interests. Call us now for a fully private case review. Our firm handles shareholder disputes throughout South Florida from our offices in Miami and West Palm Beach.