As the coming tide of COVID-related class action suits looms, many countries are adapting and growing the legal processes by which these cases are governed. The US and Canada have seen filings for class actions skyrocket, with Australia, Germany, the UK and China all expected to follow suit. And where there are class actions, there are litigation funders.
An LFJ Conversation with Michael Kelley, Partner, Parker Poe
As the coming tide of COVID-related class action suits looms, many countries are adapting and growing the legal processes by which these cases are governed. The US and Canada have seen filings for class actions skyrocket, with Australia, Germany, the UK and China all expected to follow suit. And where there are class actions, there are litigation funders.
ICLG details that industries hardest hit by class actions include retailers, tech companies, event and ticketing companies, manufacturers, and financial institutions. In Canada, negligence-related cases involving nursing homes and transportation providers, and insurance cases are most prominent. Australia is overwhelmed with class actions and has enacted new laws to stem the tide of litigation funders helping citizens who have been wronged by governments or big business.
Specific types of class action litigation are expected to intensify in size and number. Consumer cases regarding overpricing, scheduled subscription payments, and breach of contract will no doubt be common. As will commercial litigation over force majeure, warranties, and indemnification. Securities litigation will likely also rise, as well as insurance claim denial cases.
Employment liability with be another huge litigation type as safety and privacy issues come to light. Preparedness and discrimination suits are expected to rise, as will whistleblower and retaliation claims. Privacy litigation may also grow as more and more people are working remotely or taking online classes. Data breaches and cyber insecurity are already fueling class action filings.
Those looking to minimizing risks would do well to perform a risk analysis that includes reviewing agreements and public disclosures. Communicate with employees, vendors, and shareholders if applicable. Plan and implement safety procedures at every level, including increasing options to work from home. Some recommend that you stave off lawsuits by implementing a class action waiver. Your legal team can advise on this.
Taking precautions now can save millions in time and legal fees down the road.
