Class action lawsuits are a powerful tool for protecting the rights of consumers, workers, small businesses, and other parties harmed by illegal or unethical behavior. Companies often use various strategies to avoid these lawsuits, from pre-dispute arbitration agreements to questionable legal interpretations. The following outlines some of the companies' most common tactics to avoid being held accountable for their actions:
 

1. Pre-dispute Arbitration Agreements

Many companies include mandatory arbitration clauses in their contracts, agreements, and other documents that require customers to waive their right to sue or participate in a class action lawsuit. These clauses can be challenging to spot and understand, so consumers must read contracts carefully before signing them.
 

2. Designating Key Employees as Exempted Parties

Defending parties may designate critical employees, such as executives and directors, exempt from being named in a class action lawsuit. The tactic allows companies to avoid being held liable for the actions of specific individuals, even if they were directly involved in the wrongdoing.
 

3. Unfair Consumer Contracts

Companies may craft consumer contracts written to be overly complex or confusing, making it difficult for individuals to understand their rights and the potential for a class action lawsuit. Such agreements may also contain vague or misleading language for consumers to determine their rights.
 

4. Waiving Statutory Rights and Remedies

Companies may include contract provisions that deny individuals the right to initiate a class action suit, thus eliminating any statutory protections or remedies. These clauses hide in long, complex documents that many consumers fail to read or understand.
 

5. Failing to Notify Class Members of Their Rights in Settlements Properly

Defendants often fail to notify class members of their rights in settlements, making it difficult for them to take advantage of compensation or other benefits. Companies may also structure the settlement process in such a way to obstruct class members from filing claims or otherwise participating in the settlement.


 

6. Crafting Complex Legal Arguments Against the Merits of a Claim

Companies may attempt to undermine the strength of a claim through complex legal arguments. It can include arguing that the class action lawsuit lacks sufficient legal standing or that the claims have no merit. Such arguments can be difficult to disprove, allowing companies to avoid responsibility for their actions.
 

7. Notice Requirements That Are Too Restrictive or Difficult to Follow

Numerous organizations are utilizing overly strenuous notification requirements, such as requiring class members to present voluminous documentation and evidence of their claims. It can make it difficult for individuals to participate in the settlement process.
 

8. Requiring High Burdens of Proof for Class Action Claims

Companies may require class members to meet a high burden of proof to make a claim. This can include providing extensive documentation or other evidence that can be difficult for individuals to obtain. Concurrently, companies may set disproportionately high damage claims that make it hard for class members to receive compensation.
 

9. Making Use of 'Choice-of-Law' Provisions That May Favor Defendants

Companies may include choice-of-law provisions in contracts or other documents that favor the defendants. It's an ideal way to protect yourself from legal repercussions and narrow the scope of any claims. Furthermore, it can be frustrating for class members to demonstrate negligence or other misconduct.
 

10. Utilizing Uneven Settlement Distribution Practices

Companies may utilize uneven settlement distribution practices, such as offering different benefits to different classes of claimants. This can make it complicated for individuals to obtain the same remuneration or other perks as those given to others. Moreover, these practices can deter claimants from filing claims or becoming involved in a settlement.
 

11. Employing Arbitration Provisions

Companies may include arbitration provisions in contracts or documents requiring individuals to resolve disputes outside the court system. They can use it to avoid liability violations or limit a claim's scope. Furthermore, it can be challenging for individuals to get the same incentives and advantages that others enjoy.
 

12. Utilizing Unfair Costs and Fees

Companies may utilize unfair costs and fees associated with a class action lawsuit, such as requiring the payment of filing fees or other expenses. It can make it difficult for individuals to participate in the process and may discourage them from filing claims or participating in the settlement.

While these tactics may effectively limit liability, they can also make it difficult for class members to take advantage of compensation or other benefits. Class action attorneys have the experience and knowledge to recognize such tactics and help individuals receive the compensation they deserve. Class members need to understand their rights and utilize the services of a qualified attorney to maximize their chances of obtaining justice.