A Guide on the Most Popular Class Action Lawsuits in Legal History
It is estimated that over 1000 class action lawsuits are filed annually. It is essential, therefore, to be cautious with investments. Class action lawsuits happen when a group of people together goes against a defendant, represented by a member. In this kind of suit, numerous parties of people are included in the lawsuit. Among the major advantages of filing this type of lawsuit is that the plaintiffs who cannot afford an attorney still get to be involved in seeking justice. Another goal of doing class action lawsuits is to minimize the number of suits going into the court. The lawsuits are filed with basic information which applies to the whole group. When the group is extensive, it is challenging to get every case to look identical. This article addresses some of the famous class action lawsuits in legal history.
The BP Oil Spill case in Mexico is one of the common class action lawsuits. The case was filed by public prosecutors for the Deepwater Horizon oil spill and environmental damage by the company. The oil spill threatened many animals and wildlife species, and the repercussions of the spill were experienced on the entire coast. The company had to provide many to cover federal claims and penalties to the state and government.
Another famous class action lawsuit is one that was one involving four tobacco companies in 1998. These companies agreed to a large settlement to help cover medical expenses for people who smoke their products. About 45 states were included in the settlement, and people were to receive payments over 30 years. This was seen as the best way to get tobacco companies to pay and help with Medicaid programs.
A class-action lawsuit happened in Hawaii with the Kona Beer company. The issue with the company was false advertising. The company marketed its beer as Hawaiian brewed even though it was being brewed all over the continental US. The affected people in the lawsuit received a couple of dollars per pack purchased.
The Enron Security class action settlement that occurred in 2006 is another example. This was an energy trading company that had defrauded its shareholders. The company declared bankruptcy soon after the fraud was discovered. The previous executives of the company was later taken on trial and were convicted of fraud and conspiracy, and many people lost their jobs and pension benefits.
Another popular case in this category involved Worldcom Securities. This company was considered to be the largest communications company in the world until a merger came up. The CEO of the company had created a merger proposal, and though it surpassed, he held the stock prices high for the company and stole millions of dollars for him to keep his stock. The company later declared bankruptcy and had to share a settlement with its prior investors.