Class action lawsuits are on the rise as they’re increasingly driven by data breaches and ADA compliance issues, according to the inaugural Class Action Litigation Report by Lex Machina, a division of LexisNexis. The report reveals that class action filings have been steadily increasing from 2014 through 2020, marking a 10% dip in 2021 but then began rising again in 2022. Last year witnessed a 4% rise in the class action filings, elevating the total to as many as 9,705 cases.
This continual growth in class action lawsuits represents the evolving challenges faced by legal professionals worldwide, especially those catering to the needs of large corporations and law firms. As data breaches become more commonplace and the stipulations set forth by the Americans with Disabilities Act (ADA) become more stringent, a larger number of firms and corporations find themselves at the forefront of legal proceedings.
An integral takeaway from Lex Machina’s analysis underscores the relevance of preventative measures in the corporate world. A stringent focus on securing data and ensuring all practices align with ADA guidelines can meaningfully mitigate the risk of class action lawsuits.
In light of this, corporate entities and law practitioners alike should incorporate the report’s insights into their legal strategy moving forward. These evolving legal trends offer a clear sign of the times, providing critical perspective for those who aim to remain ahead of potential risks and challenges on the legal landscape.