a

Facebook

Twitter

Copyright 2015 Libero Themes.
All Rights Reserved.

class action claims Tag

Risk Settlements > Posts tagged "class action claims"

Class Settlements And The Risks Of Viral Media Attention

Unfortunately, class action settlements tend to be another step down the road of financial uncertainty and unpredictability. In the class action context, when resolving a case using a claims-made settlement, the financial payout varies significantly, which can adversely impact liquidity, enterprise value, cash flow and assets. Additionally, when settlements go viral, companies face extreme losses which could exceed reserves and available cash on hand. So what causes cases to go viral and create unmitigated financial risk for settling companies? The answer is simple and also multifaceted: the internet. Digital communications and the thirst for relevant news content have completely changed how consumers gain awareness of class actions and how they file claims for settlement benefits. As a result of these changes, the ability to reach potential class members as well as those intent on abusing the system to receive free cash has created a fundamentally different risk paradigm for those looking...

Continue reading

To Insure or Not to Insure with Class Action Settlement Insurance? That is the Question.

For most companies, Class Action Settlement Insurance is the answer. Few organizations walk away from a class action lawsuit unscathed. After spending significant sums to defend, the vast majority of cases result in some type of monetary settlement. Additionally, key executives can be diverted from business for months on end. Adding insult to injury, today’s media climate dramatically increases the likelihood that a class action will go viral. Cases against popular brands are frequently picked up by national news sources. Moreover, scores of websites and social media pages are dedicated to finding putative class members and instructing them on how to make a claim. In one widely publicized action, for example, a settlement involving the energy-drink brand Red Bull resulted in nearly 3 million class members seeking a $10 payout. In short, the risks associated with class action suits are greater than ever. But there is a way to mitigate this...

Continue reading

Seven Reasons Companies Seek Class Action Certainty Through Risk Transfer

Companies spend billions of dollars defending class action lawsuits each year. Compared to other forms of litigation, defending a class case is exceptionally challenging because the percentage of these cases considered “bet the company” continues to rise, while the overwhelming majority still results in settlement. Compounding the complexity of these matters is the universal understanding that the company’s and class counsel’s perspectives on settlement are wholly divergent. Knowing this, companies looking for certainty should consider risk transfer as a viable strategy in class action litigation.

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....

Continue reading