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Risk Settlements > Blogs & Articles (Page 2)

Why Waiting to Consider Settlement Could be a Mistake

Class action lawsuits are complex, and many companies that find themselves involved in them are under the impression that they are in for a long, protracted battle. However, this doesn’t always have to be the case. While there is no one-size-fits-all approach to class actions, early settlement consideration can provide a number of benefits to the defending company. Thus, the decision to fight or to settle the lawsuit is not mutually exclusive, but rather can, and often should, be evaluated and pursued simultaneously early in the case. Defending litigation is expensive and the majority of cases end up with a cash settlement. So, the question is: Can an early settlement provide an efficient end to litigation? The simple answer is yes, for a number of reasons. When settlement is considered at the beginning of litigation, class counsel: Has not yet invested copious time and expense – factors which, when added up, can...

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Guest Post: Are Class Action Settlements Tax Deductible?

Guest Post by Peter Robbins, CPA, Partner at Corbett & Robbins, LLP With the exponentially rising role that litigation plays in today’s business world, one might consider the costs associated with settling lawsuits to be “ordinary and necessary” business expenses, rendering them tax deductible under §162 of the Internal Revenue Code (IRC). However, as experienced tax professionals know, there are always exceptions and restrictions to the rules—factors that can leave the unwary with an unexpected and hefty financial burden to bear. To determine whether payments to the settlement class are tax deductible, settling parties must bear in mind the provisions of IRC §162(c)(2) and §162(f), which prohibit deductions for payments that are: 1. Deemed to be illegal under U.S. or state law 2. For a fine or similar penalty paid to a government for the violation of any law Therefore, the ability to receive tax deductions on class action settlements is entirely dependent on tracing...

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When Settlement Claims Exceed the Fund

Experienced class action attorneys know that predicting settlement response rates is anything but an exact science, and it is particularly difficult in today’s environment, with social media and settlement promotion sites. Any class action settlement can go viral, causing unpredictably high claim rates and putting companies at risk of exceeding their settlement fund....

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Settling Class Actions, from the Defending Company’s Perspective

While class counsel has its own objectives when it comes to settling class action lawsuits, the defending company has fundamentally different analyses. First is whether it should settle the case at all, as there are often business reasons not to do so. For example, the company may not want the reputational hit, to invite regulatory scrutiny or to set a bad precedent by settling....

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Class Counsel’s Perspective on Class Action Settlements

When it comes to class action lawsuits, it is a universal truth that the class counsel will always want to settle. In fact, the sooner, the better as, class counsel is paid upon resolution. And, quicker resolutions, allowing the payment of a class benefit and a pathway to fees, are optimal. So, while defense counsel and the companies they represent consider whether settlement is even appropriate given legal and business interests, class counsel is already focusing on the structure of the settlement....

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What Type of Class Litigation is Best Suited for Insurance?

Deceptive or fraudulent marketing allegations, unpaid overtime, defective product claims and breaches of contract or warranty. These broad categories are just a few examples of the virtually countless types of class action litigation that can take full advantage of the benefits of Class Action Settlement Insurance (CASI) – the only insurance product available for existing class actions and their associated financial and business risks.

Wondering if you might be able to qualify for CASI? Learn about the types of settlements that work in conjunction with CASI and find explanations of potential class action cases by downloading the full Class Litigation and Insurance article below.


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Risk Mitigation and Settlement Strategies for Class Action Lawsuits

During the past decade, American businesses have seen a surge in consumer-driven class action lawsuits. Given the prevalence of these lawsuits, it is important to be vigilant in monitoring your business practices to avoid unnecessary exposure – and there are many steps that a company can take to do this.

To find out about these preventative measures, along with an in-depth explanation of class action terms, best practices and the ins and outs of how to deal with class action lawsuits, download the full Mealey’s Litigation Report article below.


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