Cost-Effective Class Action Defense

Class action spending continues to rise. Clients are projected to spend $2.39 billion in legal fees in class action cases in 2018.  So, if your company is named as a defen­dant in a class action, how can you and your outside counsel defend the case efficiently and effectively? This article will identify legal strategies and practical tips for how class action defendants can control legal fees and costs while zealously defending class action litigation.

Move to Strike Class Allegations

Not every putative class action can be maintained as such under Federal Rule of Civil Procedure 23 or state equivalents. Where it is apparent from the face of the pleading that plaintiff cannot meet the re­quirements of certification, defendants should consider filing a motion to strike class allegations at the outset of the litiga­tion. A motion to strike class allegations ar­gues that, regardless of what any class discovery could adduce, the plaintiff will not be able to certify the putative class for any number of reasons. For example, an unascertainable class definition, disparate experiences among class members that will necessarily lack commonality, or alleged vi­olations of differing state laws that would lack predominance could all form the basis of a motion to strike class allegations.

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This article was reprinted with permission from USLAW.