Are Class Actions Meritless?
Are Class Actions Meritless?
Many critics of class actions claim that they are meritless lawsuits that corporations settle only to avoid the risk of an unexpected outcome and the expense of paying lawyers. But corporations have an inexpensive way to dismiss meritless lawsuits: the motion to dismiss. Empirical studies suggest that a small minority of class action lawsuits can fairly be described as meritless. Moreover, critics like the U.S. Chamber of Commerce have never identified more than a few meritless class actions every year out of the hundreds or thousands that are filed. The chapter concludes by giving examples of class actions that even critics would have to concede are worthwhile cases.
Keywords: Chamber of Commerce, meritless, motion to dismiss, class action, empirical, lawyers
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