These Are among the Famous 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. A class action lawsuit occurs when a group of people that are represented by a member collectively goes against a defendant. In this kind of suit, numerous parties of people are included in the lawsuit. Among the significant benefits of using this type of lawsuit is that it helps plaintiffs who would otherwise not afford an attorney. Class action lawsuits are meant to reduce the amount of suits going into the court These lawsuits are presented with basic information that works for the entire group. When the group is extensive, it is challenging to get every case to look identical. This article addresses some of the famous class action lawsuits in legal history.
The BP Oil Spill case in Mexico is one of the common class action lawsuits. This happened in 2016 when public prosecutors filed the BP Oil Spill lawsuit for the 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.
Another famous class action lawsuit is one that was one involving four tobacco companies in 1998. 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. It was determined that this was the easiest way to get the tobacco companies to pay up and help with Medicaid programs.
A class-action lawsuit happened in Hawaii with the Kona Beer company. The issue that was being dealt with was the company’s false advertising. The company marketed its beer as Hawaiian brewed even though it was being brewed all over the continental US. The people that were affected received a couple of dollars per pack bought.
You may also have heard about the Enron Security class action settlement that happened in 2006. 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 was later taken on trial and were convicted of fraud and conspiracy, and many people lost their jobs and pension benefits.
Another popular case in this category involved Worldcom Securities. This company was considered to be the largest communications company in the world until a merger came up. The CEO of the company had created a merger proposal, and though it surpassed, he held the stock prices high for the company and stole millions of dollars for him to keep his stock. The company later declared bankruptcy and had to share a settlement with its prior investors.