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Carlton Fields' 14th Annual Class Action Survey Overview

Carlton Fields has recently unveiled its 14th annual Class Action Survey, providing a detailed look at the current landscape of class action litigation. This year's report reveals unprecedented spending trends and the growing challenges that corporations face in this arena. According to the findings, class action spending has surpassed a remarkable $4 billion for the first time, marking an increase of $300 million compared to the previous year, continuing a decade-long growth trend.

In this year’s survey, the firm gathered insights from over 300 general counsels and senior legal officers representing Fortune 1000 companies. One of the most pressing observations is the increasing pressure on in-house counsel, who are now dedicating an unprecedented amount of their time—an extra day each week—managing class action matters. The rising incidence of class actions faced by companies is indicative of a broader trend, with more organizations than ever encountering such lawsuits.

Key Areas of Concern: Labor, Fraud, and AI

The survey highlights labor and employment as the leading domain for class action matters, reflecting current dynamics such as layoffs, more accessible resources for employee participation in class actions, and emerging state regulations. Following closely is the consumer fraud sector, which has been inflamed by growing consumer awareness of data privacy issues and regulatory actions against companies violating consumer rights.

One of the most significant findings from this year’s report is that securities fraud has overtaken other risks, emerging as the primary concern for class actions anticipated in 2024. The volatility of stock performance, alongside investor reactions to disappointments in earnings, has escalated the potential for class litigation.

Moreover, the survey reveals that 60% of companies perceive baseless claims as their most significant risk, even as the growth of such claims appears to be plateauing. However, a new entry into the risk category is generative AI, which has sparked concerns surrounding data privacy and unforeseen liabilities that could arise from its use.

Alternative Fee Arrangements and Cost Control

Reflecting a strategic shift, over 40% of companies are now utilizing alternative fee arrangements (AFAs) for class actions. This marks a significant rise over the past four years, with flat fees gaining popularity over previous models like phased payments. Companies are also increasingly engaging in success fee arrangements, which are indicative of their results-oriented approaches to litigation.

As the legal landscape continues to evolve, the challenges presented by the digital age—especially those influenced by artificial intelligence—are anticipated to further complicate class action litigation in the future. Companies will need to adapt their strategies to navigate these changes effectively.

Conclusion

For those interested in the full details of the survey findings and trends, the 2025 Carlson Fields Class Action Survey is available for download at www.classactionsurvey.com. Carlton Fields, known for its expertise in litigation and regulatory practice, continues to position itself at the forefront of addressing these pressing challenges.

With a focus on class action defense and corporate counseling, the firm is well-equipped to guide its clients through the complexities of the landscape they face. This report not only sheds light on current issues but also prepares the ground for future discussions and strategies in the realm of class action litigation.