In-house counsel’s focus and resources are often dedicated primarily to defensive or reactive measures, like defending the company’s interests in litigation, advising on compliance issues, and resolving business disputes, all of which can be both time-consuming and expensive. ...
Continue reading
The Telephone Consumer Protection Act (“TCPA”) has exploded in popularity over recent years....
Continue reading
[vc_row triangle_shape="no"][vc_column][vc_column_text] A cy pres award or distribution is derived from the French saying of “cy pres comme possible” (meaning “as near as possible”). Cy pres awards are utilized, albeit less often these days, in connection with class action settlements to provide for the distribution of unclaimed settlement funds or where the amount of the individual class benefit is too small to justify a direct distribution to each member of the class. By way of example, in cases where the settlement benefit to the class is comprised primarily of injunctive relief (i.e., changes to a product’s labeling), the settlement fund may not be large enough (despite it being a million dollars) to justify distributing 25 cents to four million class members across the country. Or, when a portion of the settlement fund is unclaimed, it may make sense to distribute the unclaimed portion to a charity or other organization, chosen by...
Continue reading
The modern class action, now on the books for over fifty years, allows injunctive remedies...
Continue reading
You are the company’s General Counsel. What if there was a way to turn potential claims into money now, instead of costly litigation for years to come?...
Continue reading
[vc_row triangle_shape="no"][vc_column][vc_column_text] Third-party litigation funding (“TPLF”) is a budding industry reshaping commercial litigation in the United States and abroad. Domestically, high-stakes antitrust, securities, intellectual property, business-contract, and other large-damages lawsuits almost certainly mean a protracted and costly litigation process, often to the point where the risk cannot be justified. This situation deters would-be plaintiffs from the commitment and prevents them from realizing the upside. While the opportunity cost can be substantial, many businesses can neither endure the uncertainty nor the possible exposure. TPLF enables plaintiffs to take on well-funded defendants who may contest the lawsuit with seemingly inexhaustible resources. In turn, plaintiffs incur additional, unplanned expenses that strain corporate budgets. Ultimately, the only feasible way to litigate such a matter is to hedge the risk. Partnering with a litigation funder to shift the risk, namely the burden of legal fees and expenses, allows corporate plaintiffs to focus capital on core business avenues,...
Continue reading
[vc_row triangle_shape="no"][vc_column][vc_column_text] In federal antitrust and securities class actions, large corporate claimants have the option to seek recovery as part of a class or pursue damages individually, via direct action. The decision is not straightforward; an array of variables complicate this risk-reward enigma. In-house legal departments consider to what degree pursuing direct action will be a costly, time-consuming, and distracting pursuit in view of the company’s financial health and risk appetite, and of course, to what potential benefit. While daunting, declining to opt-out can mean leaving money on the table, particularly because risk transfer solutions are available to opt-out plaintiffs with meritorious claims. Risk transfer solutions like asset monetization can change the equation, offering companies the chance to monetize latent assets while taking no downside financial risk. Weighing the Opt-Out Decision For corporate victims with large individual damages, participating as a member of a class is often suboptimal due to procedural complexities and the...
Continue reading
CASI is unlike traditional insurance products in that each policy is tailored to the specific class action settlement circumstances and financial needs of the business. CASI is purchased to transfer the settlement risk in existing class action litigation and coverage is available for the full spectrum of class cases. ...
Continue reading
Seth Hopson, the former General Counsel of North American Power and Gas, discusses his experience with class action litigation and the benefits of class action settlement risk transfer. Can you tell us about your role within the company? I was the General Counsel of a retail energy company serving 300,000+ retail and small commercial customers in the New England, Midwest and Southern regions of the United States. As such, I was responsible for all litigation and risk management on the legal and regulatory side of the business. How frequently was your organization impacted by litigation? During the seven years from the inception of the business until the sale of the business, we went to trial once and were also involved in a multi-state class action litigation covering a potential customer class of over 700,000 current and former retail residential customers. That matter included allegations that the company breached our terms of service...
Continue reading
[vc_row triangle_shape="no"][vc_column][vc_column_text] In this interview, Paul Karlsgodt, Chair of Baker Hostetler’s Class Action Practice Group, discusses the benefits of working with Risk Settlements and the value of settlement risk transfer solutions. Tell us about your practice and your department. I lead a nationwide practice of approximately 30 litigators who specialize in consumer class action defense. How frequently do you handle class action cases? 95% of my practice is dedicated to defending class actions. I lead between one and two dozen active class actions pending at any given time. What types? These days, most of my work is in the area of data security and privacy, but I also handle class actions involving consumer insurance coverage, pricing, and miscellaneous alleged violations of consumer protection laws. Have you had any recent noteworthy victories? My most noteworthy recent victories have been in the area of data security class actions. In particular, we have been successful in getting an...
Continue reading