Effective Strategies for Defending Class Actions
Spring 2008The Corporate Counselor
For virtually all companies, class action litigation poses a substantial threat. The typical class action defendant faces multimillion dollar damage claims, broad and disruptive discovery, significant defense costs, and inordinate trial risks. Class actions also often attract negative publicity, with unfavorable outcomes not only hurting the bottom line, but also jeopardizing a company’s hardearned image.
Given the risks, class action litigation demands proactive management by in-house and outside counsel from the outset. This article outlines several strategies that counsel can employ to effectively manage and defend class actions and, thereby, gain the upper hand in this difficult type of litigation.