Quote:
Originally Posted by Tommy
Forgive the tangent, but I recently received notice that I was an aggrieved party in a class action suit. All I had to do was take a trip to the courthouse, pay some copying fees, get some documents notarized, and mail it all in to receive my $48 share of a multi-million dollar lawsuit against some deep pocketed corporation. Of course the attorneys representing me and the thousands of other parties were taking the lion's share of the payment. I decided it wasn't worth the effort ..... for me.
|
Class Action suits serve the primary purpose of providing a strong disincentive to corporations and businesses from taking advantage of the public and in short ripping them off a little at a time which adds up to mis-gotten huge profits for those corporations that do it. A nickel at a time in mis-gotten savings for corporations spread over millions and millions of product add up to huge profits while misleading and ripping off the consumer.
Example: If a jar of product advertises a certain ingredient or includes it on it's nutritional label at a certain quantity or represents that it provides a benefit and it in fact does not provide what it advertised are you going to sue the company for the $2.95 you paid? Likely not. Moreover, what is you loss or what are your damages? You just throw the product out and move on or write a letter to the company which ends up in the circular file.
While I don't do class actions on a regular basis I know attorneys in Manhattan that do. Class actions take up in many cases rooms of documents, thousands of hours and pose the risk of the plaintiff's firm/attorney paying the defendant's counsel fees if they lose. Did you know that?
Class actions serve to disgorge the improper profits gained by the wrongdoer which in many cases to amounts to tens or hundreds of millions. You are notified to get back your portion. If you don't want it, that's fine. Walk away.
Yes, class action lawyers can make a huge amount of money but also put in in many cases hundreds and hundreds of hours, expense and risk of losing and getting hit with fees. Everyone is entitled to a profit. You make a profit on what you do correct? Profit many times is proportional to the effort and risk involved. Risk reward.
The court in class actions also sets the fees.
Would you risk hundreds and hundreds of hours on a contingent basis of success, the risk of you losing and not only losing your expenses, hundreds of hours and then getting hit for the other sides fees without a huge profit potential? No, didn't think so.
Class actions also help ensure you get what you paid for.
Just thought you would like to see the other side to the coin.
Back to the subject.
29Likes
Threaded Mode
