Do you ever wonder where the claimants for the class action lawsuits come from? Well, one place they are recruited is on sites like this one, which boasts of a readership of over 45 million for their monthly newsletters.
Those sites not only list open settlements for which people can sign up, but they also actively recruit litigants for potential class action lawsuits. In a sense, they are the digital equivalent of ambulance chasers.
While these and other similar sites are not technically illegal, a fair argument can be made that they encourage litigious consumers to seek funds from companies to which they might otherwise not be entitled.
Fighting back can discourage these types of settlements
If you and your company get targeted in a class action lawsuit, it is important to remain proactive. Safety, of course, should remain your main priority. If your company sold or manufactured a product that is dangerous to consumers, it is incumbent upon you to take all the steps necessary to keep the public safe.
That can include issuing voluntary recalls and removing harmful products from the shelves. But you also have responsibilities and fiduciary duties to keep your company solvent for the shareholders.
Avoid class action certification whenever possible
Defending your company against class action lawsuits begins with attempting to keep the court from certifying the litigation as class action. That step alone can significantly reduce the potential financial liability your business faces.
But doing that requires early and immediate legal intervention on the part of defendant companies. Delaying action can cost your company a great deal of money. It can also permanently harm your carefully curated brand.