Predatory class action lawsuits drive up consumer costs and reduce innovation. Class actions were conceived as an expeditious way for people with similar grievances to join in a common suit and get compensated for injuries. But class actions have evolved into a favored means for Trial Lawyers, Inc. to launch predatory assaults on businesses and large institutions, often in the name of clients who dont even know they are being represented. Despite the absurdity of many of these suits, legitimate companies are hard-pressed to defend themselves because they face thousands or even millions of plaintiffs. As they watch their share prices sink with bad publicity, companies almost always have to settle rather than risk billions of dollars in punitive damages.[45] Increasingly, the end result is huge fees for the lawsuit industryan average of over $1,000 per hour according to Class Action Reports[46]but relatively tiny awards for individual plaintiffs.[47]
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