Class action lawsuits enable a group of people to collectively address concerns against companies or the government. Most of these lawsuits often end up in settlements, some done out of court.
Over the years, there have been several class actions that have resulted in record-breaking settlements and have changed how several industries or companies do business.
However, it is important to note that not all class actions result in billion-dollar compensation. To get to such figures, there must be proof of extensive damages and negligence from the defendant. You can visit www.lawsuits.com to get more information on the current lawsuits in the country.
In this article, we will discuss 4 class action lawsuits with the highest settlements in the country.
1. Tobacco Master Settlement Agreement (1998)
The Tobacco Master Settlement Agreement is still one of the most significant class action cases in US history. This lawsuit involved 46 states, which were suing major tobacco companies with the aim of recovering healthcare costs from illnesses caused by smoking.
The settlement required Philip Morris, RJ Reynolds, and two other tobacco companies to pay $206 billion to 46 participating states over 25 years. However, this was not a traditional class action lawsuit, as it involved public prosecutors.
Nevertheless, this agreement led to strict advertising restrictions on tobacco products in the country. This was a turning point in US history for public health policy, which emphasized corporate accountability.
2. BP (British Petroleum) Gulf of Mexico Oil Spill Settlement (2016)
The Deepwater Horizon oil spill in 2010 caused devastating environmental damage and economic losses for Gulf Coast communities. BP faced numerous lawsuits for negligence, leading to a $20.8 billion settlement, one of the largest environmental settlements in US history.
The settlement was approved on April 4, 2016, and ended all criminal and civil penalty claims against the owners and operators of TransOcean, BP, Halliburton, and Anadarko. The funds were allocated to restoring the environment, economic recovery, and compensation to local governments for affected businesses.
3. Enron Securities Fraud Settlement (2008)
Enron’s collapse in 2001, triggered by widespread accounting fraud, led to serious losses for investors. A class action lawsuit was filed against Enron executives and the involved entities that led to a $7.2 billion settlement.
This case compensated shareholders and brought to light the need for corporate governance reforms. During this lawsuit, Congress passed the Sarbanes-Oxley Act to establish strict regulations for financial disclosure and accountability.
4. Payment Card Interchange Fee Settlement (2019)
Businesses and organizations filed a class action lawsuit against Visa and Mastercard for fixing prices of interchange fees. These are the costs businesses pay for processing card interactions. The settlement was around $5.54 billion and a turning point for the financial services industry.
It aimed to reduce transaction costs for businesses and promote fair practices in payment processing. The case also brought attention to the hidden fees customers are charged for transactions.
Conclusion
These high-profile class action lawsuits show the power of collective legal action in holding companies accountable. These lawsuits have brought changes to various fields that have protected the average consumer and the environment.
