The Impact of Free Media on Class Actions

Class action lawsuits are certainly not new. Indeed, some scholars believe they date back to medieval times, when groups of villagers would choose three or four representatives to represent their collective interests in court. What is new, however, is the rampant popularity of class action lawsuits in the age of the internet and social media. Whereas notice to class members historically came by way of mailings or publication in relevant periodicals, today class membership is an advertised commodity. Consequently, class awards have the potential of becoming exponentially larger than they’ve ever been. By way of illustration, this article presents some of the top websites advertising quick cash through participation in class action suits. It also explores several case studies illustrating how media attention to class action lawsuits has changed the way class payouts are made. Additionally, the article touches on the desirability of various settlement structures that may help stem the tide of...