Summary
Will the downturn in the economy create more or less class actions?Is it still more economical to pursue a class action as opposed to an individual law suit?
Analysis
Investors who were clearly looking for a return on their investment are turning to the court for some solace in their failed financial endeavors. Class actions are up 37% from last year to 267, a six year high. While almost half were somewhat related to the credit crisis in 07, it is anticipated that this ratio will increase even more & that many financial institutions will be targeted. http://www.law.com/jsp/ihc/PubArticleIHC.jsp?id=1202427494170 Optimism, however, needs to be kept in perspective. It still remains economical to pursue a class action as opposed to an individual lawsuit, but the time to recover is taking longer & viable defendants are becoming less and less with more limited recoveries. The Supreme Court has also made it even harder to prove your case, resulting in many class actions being dismissed. Even with the economy in somewhat of a downward spiral litigation is on the upswing. Some say it is just about blame, while others are holding for pure & simple accountability. One should also not forget the simple maxim, Caveat Emptor, let the buyer beware. Sure there is a strong fiduciary relationship that exists, but trust should not blind us with the dance of dollar signs. Pursuing recovery for your losses is not only very time consuming, but labor intensive. This is not to say that court intervention thru a possible class action should not be considered, just weighed even more carefully than your initial financial transaction that brought you to that phase!
