Title: Record-Breaking $40 Billion in Class Action Settlements in 2024: Fresh Insights
In 2024, class action lawsuits broke yet another record, surpassing the $40 billion mark for the third consecutive year. This impressive feat was reported in the Duane Morris Class Action Review 2025, released recently. Companies like Apple, Meta, and Walt Disney were among those that settled for substantial amounts last year.
With 2024's $42 billion in class action settlements, Gerald L. Maatman Jr., chair of Duane Morris' class action defense group, pointed out that it's the third-highest value in the last two decades. Only the settlement numbers from 2023 ($51.4 billion) and 2022 ($66 billion) were higher.
The research project examining 1,441 class action lawsuits identified the ten major areas with the most settlements in 2024:
- Product liability ($23.40 billion)
- Antitrust ($8.41 billion)
- Security fraud ($2.55 billion)
- Consumer fraud ($2.44 billion)
- Privacy ($1.94 billion)
- Wage and hour ($614.55 million)
- Data breaches ($593.2 million)
- Private industry pension plans ($413.3 million)
- Government enforcement litigation ($327.9 million)
- Discrimination ($313.5 million)
Class action lawsuits can be a crisis trigger for many companies, potentially causing significant damage to a company's image and bottom line. They can impact a company's market share and reputation significantly, creating substantial pressure on decision-makers who must navigate associated risks and exposures.
The public attention these cases often receive can damage consumer trust and investor confidence, even before a settlement or judgment is reached. Losing class action lawsuits can also have a major impact on a company, as Rite Aid found out in 2023. Embattled by several opioid-related class actions and settlements, as well as a data breach class action, Rite Aid's bankruptcy proved a proverbial straw that broke the camel's back.
Smaller companies can be just as affected as larger ones, with the financial burdens of settlements or judgments stressing their resources and leading to long-term brand damage.
To mitigate the risks of class action lawsuits, company leaders should focus on proactive measures. This includes keeping legal and compliance documents current and comprehensive, establishing robust consumer protection policies, implementing class action waivers, and working closely with legal teams.
Among the trends revealed in the Duane Morris Class Action Review 2025, there was an increase in challenges to corporate diversity, equity, and inclusion programs, with plaintiffs claiming they constitute reverse discrimination. Additionally, data breach-related lawsuits rose due to a growing number of corporate data breaches, and privacy issues related to website tracking tools became more prominent.
President Donald Trump's second term is expected to have an impact on the class action lawsuit landscape. While there will be less government oversight and regulation under the incoming Trump Administration, plaintiffs may ramp up private litigation to fill the void.
Under the Biden Administration, legislative efforts to limit arbitration defenses were successful, and government enforcement litigation saw an increase in the antitrust space. Meanwhile, amendments to anti-discrimination laws to cover pregnancy were passed.
Prioritizing proactive measures can help lessen the risks of class action lawsuits. Companies should ensure all legal and compliance documents are current, establish robust consumer protection policies, implement class action waivers where legally permissible, and work closely with their legal teams. Companies can also create comprehensive curative measures and a strong public relations strategy to minimize the risk of being exposed to a class action claim.
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Enrichment Data:
*Class action lawsuits had a significant impact on various sectors in 2024 and 2025. Here are some key points:
Sector-Specific Impacts
- Product Liability Class ActionsFinancial Impact: Settlements in this area totaled $23.40 billion in 2024, a decrease from $25.82 billion in 2023.Trends: PFAS-related claims have been prominent, with 3M Co. offering a $10.3 billion settlement for PFAS claims related to public water systems.
- Antitrust Class ActionsFinancial Impact: Settlements in this area totaled $8.412 billion in 2024, a decrease from $11.14 billion in 2023.Trends: While the financial impact has decreased, antitrust class actions remain a significant concern.
- Securities Fraud Class ActionsFinancial Impact: Settlements in this area totaled $2.55 billion in 2024, a decrease from $5.40 billion in 2023.Trends: Filings increased in 2024, with 229 new federal securities class action suits filed, driven by ongoing trends like SPACs, COVID-related suits, and cryptocurrencies.
- Consumer Fraud Class ActionsFinancial Impact: Settlements in this area totaled $2.44 billion in 2024, a decrease from $3.29 billion in 2023.Trends: Consumer protection remains a significant area, with 41% of respondents experiencing class actions related to consumer protection in 2024.
- Privacy Class ActionsFinancial Impact: Settlements in this area totaled $2.01 billion in 2024, an increase from $1.32 billion in 2023.Trends: Data breach litigation surged in 2024, with a significant increase in filings. Despite this surge, only five class certification decisions were issued, suggesting many cases settle before reaching this crucial juncture.
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Emerging Trends
- PFAS LitigationPFAS-related claims have become a major focus, with significant settlements and attorneys’ fee awards. This trend is likely to continue as plaintiffs target more companies with claims related to products or packaging containing these chemicals.
- Reverse Discrimination ClaimsThe aftermath of the U.S. Supreme Court’s decision in Students for Fair Admission has led to a flood of claims targeting diversity, equity, and inclusion programs. A notable class action trial resulted in a jury finding a technology firm liable for engaging in intentional discrimination against Caucasian and non-Indian employees.
- Data Privacy and Breach ClaimsData breach litigation has reached new heights, with a significant increase in filings. While courts issued few class certification decisions, the willingness of defendants to settle is likely to fuel further growth in this area.
- AI- and COVID-Related ClaimsAI-related claims more than doubled in 2024, with 13 suits filed. COVID-related claims also increased, with 19 cases filed, a 46% increase from 2023.
- Cybersecurity and Data Privacy DisputesOver a third of respondents reported increased exposure to cybersecurity and data privacy disputes, highlighting the growing concern over data security and privacy.
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Overall Class Action Trends
- Settlement NumbersClass action settlements have exceeded $40 billion for the third consecutive year, with a cumulative value of $42 billion in 2024. This trend reflects the use of class action litigation to redistribute wealth at an unprecedented level.
- Pro-Plaintiff Litigation EnvironmentThe class action landscape is increasingly plaintiff-friendly, particularly in areas like data privacy, data breaches, diversity, and ESG initiatives. This environment poses significant financial risks for companies.
- Regulatory and Litigation EnvironmentThe average number of proceedings per respondent grew to 4.4, indicating a rise in regulatory and litigation activities. The absence of a federal comprehensive privacy law has led to 19 states passing comprehensive privacy laws, further complicating the legal landscape.
The strategic approach to mitigate the risks of class action lawsuits for companies includes keeping legal and compliance documents current, establishing robust consumer protection policies, implementing class action waivers where permitted, and working closely with legal teams. Effective leadership in this regard can also involve creating comprehensive curative measures and a strong public relations strategy to minimize the risk of class action claims.
As indicated by the Duane Morris Class Action Review 2025, there was an increase in challenges to corporate diversity, equity, and inclusion programs in 2024, with plaintiffs claiming they constitute reverse discrimination. This highlights the need for proactive leadership in ensuring company strategies align with evolving regulatory and societal expectations.
