In a first attempt to shut down the securities class action
mill, Congress enacted the Private Securities Litigation Reform Act of 1995 ("PSLRA").
If the Radioshack class is certified by the Court of Federal Claims, depending on how the class is certified, taxpayers either (i) will be automatically included in the class action
, or (ii) will have the option of affirmatively electing to be included in the class action
The taxation of contingent attorneys' fees in opt-in and opt-out class actions
is discussed below.
Most lawyers outside of the ATLA agree that federal courts are better equipped than state courts to handle national class actions
in a competent and consistent manner.
The rules of engagement are fairly simple: Find or invent some form of liability, file a class action
on behalf of consumers, agree to a settlement, collect your winnings, and if there's anything left for the consumers in whose name the suit was filed, split it up among them all.
These companies spend an average of almost 10 percent less defending and managing class action
suits, and they devote 25 percent fewer hours in-house to managing class actions
In one of these trends, a wave of copycat litigation has hit several small to midsize life insurers; in another, plaintiffs have sought to avoid some of the obstacles blocking nationwide suits in federal courts by bringing single-state class actions
, often in state courts.
Researchers also found that class actions
are eating a significant portion of court time, up to five times that of other cases and nearly the most time-consuming of all.
Product class actions
have been settled in similar scenarios, frequently with the support of the defendant.
The white paper examines the number of class actions
pending in federal courts from 2002-2005; the allegations involved, including specific accounting allegations; securities judgments, types of plaintiffs; and, the industries targeted.
To date, there have been 22 securities class actions
filed related to options backdating allegations, 20 of which were filed in 2006.
According to the white paper's author Carol Zacharias, Senior Vice President and Counsel, ACE Professional Risk, part of ACE USA, the amounts paid to resolve securities class actions