Top Class Action Lawsuits in Legal History
More than 1000 class action lawsuits are filed every year, as estimated by the Consumer Financial Protection Bureau. This makes it necessary that one is crucial when making any investments. Class action lawsuits happen when a group of people together goes against a defendant, represented by a member. In this kind of suit, numerous parties of people are included in the lawsuit. One of the benefits of filing this kind of lawsuit is that it helps plaintiffs who cannot afford an attorney. Class action lawsuits are meant to reduce the amount of suits going into the court They are filed with the most basic information that applies to the entire group. When there is a huge group of people involved, it is hard to get every case to look identical. This article addresses some of the famous class action lawsuits in legal history.
Among the well-known cases in class action lawsuits is the BP Oil Spill case in Mexico. The BP Oil Spill lawsuit was effected by public prosecutors against the company for environmental damage and the Deepwater Horizon oil spill. The oil spill threatened many animals and wildlife species, and the repercussions of the spill were experienced on the entire coast. The company paid money to the state and government, mainly covering federal claims and penalties.
Around 1998, a class action lawsuit was done involving four tobacco companies. The companies agreed to pay a large settlement to take care of medical costs for those that smoked their products. Over 45 states were included in the settlement, and people were to receive payments over an extended period of 30 years. This was seen as the best way to get tobacco companies to pay and help with Medicaid programs.
Another class action lawsuit involved the Kona Beer company. The company was being targeted due to conducting false advertising. This company was marketing its beer as being brewed in Hawaii, yet it was brewed throughout the continental US. The people affected by the lawsuit received some dollars per pack purchased.
The Enron Security class action settlement that occurred in 2006 is another example. Enron Security was an energy trading company that was targeted for defrauding shareholders. Shortly after the fraud happened, the company declared bankruptcy. The previous executives of the company were later convicted of fraud and conspiracy, and many people lost their jobs and pension benefits.
A class-action lawsuit against Worldcom Securities is another. The company was deemed to be the largest communications company in the world until a merger came up. The CEO came up with a merger proposal that fell through, but then he kept the stock prices high for the company and stole millions of dollars from the company so that he could keep his stock. The company was soon after 2005 declared bankrupt and shared settlement with previous investors.