Are class action lawsuits controversial?
Increasingly the public sees the lawyers, both the defense counsel who work for hourly fees regardless of the outcome and plaintiff’s counsel who stand to obtain contingency fees if the class prevails, as the only winners in such a system. This image of class actions, however, is often advanced by organizations and large corporations seeking to undermine the ability of consumers and small and mid-sized business owners who would otherwise be unprotected against corporate misconduct. “Without private enforcement, a lot more governmental regulation would be required, something the business community and taxpayers would not likely favor,” stated Cabraser. Before any class action settlements may occur, the judge presiding over the case must give notice of the settlement to the class, allow all who wish to be heard to state their positions and/or objections, and approve the settlement, including the attorneys’ fees, only if the settlement and fees are fair and reasonable.
