Class Action lawsuits in 2022 established new records for the total amount of settlements in several categories, exceeding $63 billion.
According to Forbes article "Class Action Lawsuits Set New Billion Dollar Settlement Records In 2022: Report" explains that class action lawsuits in 2022 established new records for the total amount of settlements in several categories, exceeding $63 billion. This information was according to the Duane Morris Class Action Review, which analyzed 635 class action decisions last year from all state and federal courts, including private plaintiff class actions, collective actions, and government enforcement actions. The report was prepared by Gerald Maatman, Jr., who has been compiling similar reports for 19 years​1.
The report suggests that the total settlements may surpass $100 billion when the final tally is completed over the next few years. In 2022, there were 15 class actions that resolved cases for $1 billion or more in settlements. Maatman noted that the most significant or surprising trend was the value of settlement activity across all substantive areas.
Among all the categories, product liability actions and mass torts led with over $50 billion in settlements, an increase of 267% from 2021. Consumer fraud class actions were second, with almost $8.6 billion in settlements, marking a 640% increase from the previous year. Antitrust class actions were third, with nearly $3.8 billion in settlements, a 119% increase from 2021.
The top ten settlement categories also included:
Securities fraud class actions: $3.254 billion, up 80% from 2021
Civil rights class actions: $1.31 billion, an increase of 151%
Privacy class actions: $896.7 million, a jump of 40.5%
Data breach class actions: $ 719.21 million, a 46% increase
Employment discrimination: $597 million, an increase of 82.6%
However, settlements in wage and hour class actions and Employee Retirement Income Security Act class actions decreased by 10.3% and 2.92%, respectively, from 2021.
The Duane Morris, Class Action Review, identified several major trends, including that class action settlements in 2022 redistributed wealth at an unprecedented level. Many of these settlements originated from opioid litigation against the pharmaceutical industry. It also noted the significant role of the U.S. Supreme Court's decisions in shaping the class action landscape. The arbitration defense suffered setbacks, and the likelihood of class certification was as strong as ever. Government enforcement took a back seat, and data protection issues continued to be a challenge for corporate defendants​.
The report predicted an increase in class action litigation in 2023, fueled by the success and large settlement figures of 2022. It advised that a company's programs designed to ensure compliance with existing laws and strategies to mitigate class action litigation risks are corporate necessities. Corporations can expect more lawsuits, expansive class theories, and an aggressive plaintiffs' bar in 2023.