[DMXF]

Originally Posted by REAL 1

Class Action suits serve the primary purpose of providing a strong disincentive to corporations and businesses from taking advantage of the public and in short ripping them off a little at a time which adds up to mis-gotten huge profits for those corporations that do it. A nickel at a time in mis-gotten savings for corporations spread over millions and millions of product add up to huge profits while misleading and ripping off the consumer.

Example: If a jar of product advertises a certain ingredient or includes it on it's nutritional label at a certain quantity or represents that it provides a benefit and it in fact does not provide what it advertised are you going to sue the company for the $2.95 you paid? Likely not. Moreover, what is you loss or what are your damages? You just throw the product out and move on or write a letter to the company which ends up in the circular file.

While I don't do class actions on a regular basis I know attorneys in Manhattan that do. Class actions take up in many cases rooms of documents, thousands of hours and pose the risk of the plaintiff's firm/attorney paying the defendant's counsel fees if they lose. Did you know that?

Class actions serve to disgorge the improper profits gained by the wrongdoer which in many cases to amounts to tens or hundreds of millions. You are notified to get back your portion. If you don't want it, that's fine. Walk away.

Yes, class action lawyers can make a huge amount of money but also put in in many cases hundreds and hundreds of hours, expense and risk of losing and getting hit with fees. Everyone is entitled to a profit. You make a profit on what you do correct? Profit many times is proportional to the effort and risk involved. Risk reward.

The court in class actions also sets the fees.

Would you risk hundreds and hundreds of hours on a contingent basis of success, the risk of you losing and not only losing your expenses, hundreds of hours and then getting hit for the other sides fees without a huge profit potential? No, didn't think so.

Class actions also help ensure you get what you paid for.

Just thought you would like to see the other side to the coin.

Back to the subject.

There's no question attorneys provide some benefit, the question is does it warrant the fees they receive? I've seen business litigation, but more of an impact had my own personal experiences, including in a drawn out real estate transaction where as bills started racking up to a ridiculous level (not even a contingent case), I ended up being the one who had to come up with the ground breaking solution and meet with and negotiate acceptance with the multiple parties. The attorneys for the most part just processed paperwork/forms that once you see it done is not too difficult to duplicate the next time with adaptations. There is a concept in the business world called "value added" and that is where the issue lies. The legal system is also contorted as it is more of a game of who can push the boundaries further and is largely driven by who has the most $ to throw away to achieve their goals by wearing the other side out in to a compromised resolution - whether you are right or wrong is often more of a secondary concern.