By Gerald L. Maatman, Jr. and Jennifer A. Riley
Duane Morris Takeaway: As authors and editors of our firm’s our Class Action Review, we identified ten (10) key trends in class action litigation over the past year. Trend # 1 focuses on the unprecedented number of massive class action settlements reached in the last 12 months. Aside from the Big Tobacco settlements nearly two decades ago, 2022 and 2023 have marked the most extensive set of billion-dollar class action settlements in the history of the American court system.
In today’s video blog, Duane Morris partner Jerry Maatman discusses how the aggregate monetary value of class action settlements continued to reach incredible highs in 2023, as plaintiffs’ lawyers and government enforcement agencies monetarized their claims into enormous settlement values. In 2023, the plaintiffs’ bar was successful in converting case filings into significant settlement numbers again. Tune in below to hear all about this or read the blog post blow for more information.
DMCAR Trend # 1 – Class Action Settlement Numbers Continued To Spike At Unprecedented Levels
In 2023, settlement numbers exceeded expectations for the second year in a row.
The cumulative value of the top ten settlements across all substantive areas of class action litigation hit near record highs, second only to the settlement numbers we observed in 2022.
When the numbers for 2022 and 2023 are combined, the totals signal that we have entered a new era of heightened risks and higher stakes in the valuation of class actions.
On an aggregate basis, across all areas of litigation, class actions and government enforcement lawsuits garnered more than $51.4 billion in settlements in 2023.
The largest 20 settlements during 2023 are included on the below chart:
Such numbers are second only to the value of class actions and government enforcement settlements in 2022, which topped $66 billion. Combined, the two-year settlement total eclipses any other two-year period in the history of American jurisprudence.
In 2023, parties agreed to resolve 10 class actions for $1 billion or more. These settlements include the following:
In 2022, parties resolved 14 class actions for $1 billion or more in settlement dollars, making 24 billion-dollar settlements in two years. Reminiscent of the Big Tobacco settlements nearly two decades ago, 2022 and 2023 marked the most extensive set of billion-dollar class action settlements and transfer of wealth in the history of the American court system.
The plaintiffs’ class action bar scored rich settlements in 2023 in virtually every area of class action litigation. The following list shows the 10 most lucrative settlements across key areas of class action litigation:
$25.82 Billion – Products liability class actions and mass tort
$11.74 Billion – Antitrust class actions
$5.4 Billion – Securities fraud class actions
$3.29 Billion – Consumer fraud class actions
$1.32 Billion – Privacy class actions
$762.2 Million – Discrimination class actions
$742.5 Million – Wage & hour class and collective actions
$643.15 Million – Civil rights class actions
$580.5 Million – ERISA class actions
$515.75 Million – Data breach class actions
$263.58 Million – Government enforcement actions
$139.67 Million – Labor class actions
$103.45 Million – TCPA class actions
$100.15 Million – Fair Credit Reporting Act class actions
Many of the settlements in 2023 emanated outside of the products and pharmaceutical space, signaling a wider base and greater threat to businesses as settlements continue to redistribute wealth at a substantial rate. Furthermore, the settlements reached virtually all industries and areas of the country.
Particularly when viewed next to the settlement values observed in 2022, the settlement numbers in 2023 signal a new era of class action settlement values.
Corporations should expect such numbers to incentivize the plaintiffs’ class action bar to be equally if not more aggressive with their case filings and settlement positions in 2024.