Consumer Class Action Litigation

Consumer class actions, civil suits brought by a class representative on behalf of numerous individuals alleging fraud or the sale of defective goods or services, are almost always resolved by a negotiated settlement and are rarely brought to trial. Mediation is often used as the vehicle to reach a negotiated settlement. Even where the mediation may appear to have been unsuccessful, it will typically start and shape a continuing and ultimately fruitful settlement negotiation process before a trial can occur. Mediation thus accelerates the settlement process for the benefit of all parties. The longer the litigation remains pending, the greater the potential damage to a defendant’s brand in the marketplace. The sooner a class action settles, the sooner the settlement can obtain court approval, the sooner class members can receive distribution of whatever compensation is provided by the settlement, and the sooner counsel for the plaintiff class can be awarded and paid a contingent fee.