Survey Finds That The COVID-19 Pandemic Led to a Rise in Employment Class Action Lawsuits in 2020
By: Kiki Council
A recent class action survey by Carlton Field determined that the COVID-19 pandemic served as a major driving force behind class action lawsuits in the year 2020.FN1 While class action lawsuits have been steadily increasing since 2011, the survey revealed United States companies spent a record $2.9 billion defending class action suits in 2020.FN2 That represents 13% of the litigation spending market.FN3 Over a quarter of the 400 companies surveyed stated they faced at least one COVID-19 related claim in 2020.FN4 Approximately 1600 pandemic-related lawsuits had been filed by the end of April 2021.FN5 The survey additionally found that labor matters are one of the leading categories for class action suits.FN6
Takeaway
If you are considering, or need assistance adopting, new business practices to address COVID-19-related employment issues to minimize risk of exposure to costly class action lawsuits, contact any attorney at Campbell Litigation, P.C.
Footnotes:
FN1 – 2021 Class Action Survey - Best Practices in Reducing Cost and Managing Risk in Class Action Litigation, Carlton Fields, at 8-11, available at: https://mcusercontent.com/0c82d1e732eec64ff4cb3d4b7/files/e37471cd-7c3d-4466-1ad7-fed9e9b8e1a3/2021_class_action_survey.pdf.
FN2 – Id. at 6.
FN3 – Id.
FN4 – Id. at 10.
FN5 – Id. at 8.
FN6 – Id. at 20.