Two New Studies Undermine Right-Wing Media Myths On Class Action Lawsuits

Media Matters for America
Monday, October 20, 2014

A pair of recent studies debunk some of right-wing media's favorite rationales for legal "reforms" that make it more difficult for consumers to sue corporate wrongdoers.

Right-wing media have consistently railed against class action lawsuits, despite the fact that such suits make it easier for consumers to group low-value claims together that attorneys might otherwise not take. The Wall Street Journal in particular has been critical of class actions, calling them "frivolous," too expensive, and only beneficial to the plaintiffs' lawyers. In one editorial after the Supreme Court upheld the decades-long use of class actions for investors in securities, the Journal attacked the decision as "a champagne day for trial lawyers ... as the Justices voted to maintain the status quo." In another, the editorial board claimed that class action lawsuits that were filed to help workers recover back wages for the time they spent waiting in security check lines "would benefit lawyers far more than workers," ignoring the potential wage theft at issue.

But two new studies undercut some of the main premises behind the Journal's anti-lawsuit crusade. According to a recent report from the Center for Justice & Democracy, "class actions have not only helped victims of corporate law-breaking, but have also resulted in injunctive relief that protects us all from a wide array of corporate wrongdoing, from employment and civil rights violations to price-fixing and consumer fraud to automotive defects to health care abuses." From servicemember financial abuse to systematic sex discrimination at the country's largest employers, the report analyzed hundreds of class action lawsuits and settlements and found that nearly all of them provided meaningful relief to the plaintiffs who had been injured or defrauded. CJ&D note that "without the class action tool, corporations and businesses can ignore the law far more easily and operate with impunity."


For a copy of the complete article, contact CJ&D.

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