$2.9B Class Action Spending Record Fueled by Covid-19

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Class action litigation spending increased to $2.9 billion in 2020 (up from $2.64 billion in 2019). This rise in spending marks the sixth consecutive year of class action spending increases (based on Carlton Fields corporate survey).

Class Action Spending in 2020:

Class action accounted for about 13% of the $22.8 billion litigation market in 2020. This shows an 11.6% increase from 2019. As of April of 2021, over 1,600 Covid-19 related class actions were filed in the United States. Many are not surprised by the increase, but the amount of the increase is somewhat surprising.

The Carlton Fields Corporate Survey: Survey of Companies

The recently published survey, Carlton Fields Corporate Survey, is a survey of various companies across a range of sectors. According to the survey, the three largest categories for Covid-19 related class actions were:

  • Insurance Coverage for Business Interruption

  • Higher Education Refunds

  • Demands for Entertainment, Ticket & Travel Refunds

Covid-19 Class Actions & Employment Law Violations:

There have been more than 2.737 lawsuits (including 210 class action lawsuits) filed alleging labor and employment violations in connection to the coronavirus since March 12, 2020. California saw the highest number of coronavirus-related employment law filings at 726. (Other states with a high number of coronavirus-related employment law filings include: New Jersey at 313, Florida at 206, New York at 204, and Ohio at 162. The industries with the highest number of coronavirus-related filings were:

  • Healthcare: 666 cases

  • Manufacturing: 326 cases

  • Retail: 254 cases

  • Public Administration: 223 cases

  • Hospitality: 195 cases

A Significant Percentage of Companies Face Coronavirus-Related Suits:

Throughout 2020, more than 25% of companies surveyed faced one or more class actions. Due to the high number of class actions, more than 60% of companies surveyed noted that they changed their business behaviors in order to avoid class action litigation. Most industries saw the need to adapt their labor and employment protocols so they could remain compliant with changing regulations and safety measures, and avoid litigation stemming from Covid-19 related employment law violations.

If you have questions about Covid-19 related labor law violations or how employment law protects you against labor law violations, please get in touch with Blumenthal Nordrehaug Bhowmik DeBlouw LLP. Experienced employment law attorneys are ready to assist you in various law firm offices located in San Diego, San Francisco, Sacramento, Los Angeles, Riverside, and Chicago.