Fairness in Class Action Act Will Add Additional Hurdles for MDLs

In addition to imposing nearly insurmountable burdens on plaintiffs seeking to file class action lawsuits, the Fairness in Class Action Litigation Act will also affect multidistrict litigation.

Multidistrict litigation is similar in some ways to class action litigation. Both forms of litigation involve a group of individuals who have suffered similar harm allegedly caused by the same defendants.

Whereas class action lawsuits involve a single lawsuit filed by a plaintiff or group of plaintiffs on behalf of a large number of Class Members, multidistrict litigation refers to the grouping of a large number of very similar lawsuits that are filed by individual plaintiffs. Consolidating these individual lawsuits before one judge reduces the burden on the judicial system by streamlining pre-trial proceedings.

Multidistrict litigation and class action lawsuits can cause defendants to face significant legal expenses as they defend themselves from the litigation. Should the plaintiffs prevail in court, the defendants may be forced to pay significant damages to the plaintiffs and/or Class Members.

Corporate defendants have a huge interest in preventing these types of mass litigation, which allow consumers to band together and hold them accountable for wrongdoing. If their efforts to increase burdens for bringing MDLs are successful, they could prevent consumers from seeking remedies for “brazen” acts of wrongdoing, such as those that allegedly occurred with the Volkswagen emissions scandal.

The VW emissions scandal MDL has allowed consumers to seek compensation and other remedies for the significant losses they experienced after learning their vehicles were designed to cheat emissions testing and appear more environmentally friendly. In reality, the so-called “clean” cars reportedly emitted harmful pollutants at a rate of as much as 40 times the amount that was allowed by law.

How Will Multidistrict Litigation Be Affected?

One problem that defendants involved in multidistrict litigation face is the prospect of unscrupulous plaintiffs who may file claims in hopes of receiving a settlement payout without having to make a showing that they have been injured. In response to this concern, courts in some cases will require plaintiffs to provide some evidence to support their claims to keep their individual lawsuit from being dismissed. These orders are currently issued on a discretionary basis and typically are only issued when there is a particular interest in weeding out weak cases, such as at the beginning of settlement negotiations.

If the Fairness in Class Action Litigation Act passes, it would require plaintiffs in an MDL involving personal injury allegations to demonstrate evidentiary support such as medical records that support their claim, the alleged cause of the injury, and exposure to the alleged risk that caused the injury. Courts would be able to dismiss cases that did not meet this standard, a dismissal that could be permanent if the plaintiff is unable to provide additional evidence within 30 days. This short timeline may result in plaintiffs being permanently barred from taking legal action against the defendant.

What Can I Do?

It is not too late to stop the Fairness in Class Action Act from passing, but it is up to consumers to let their Representatives know that they disapprove of this proposed law. Call the Capitol Switchboard at (202) 224-3121 and ask the operator to connect you with your state’s senators. Then ask your Representative to vote NO on the Fairness in Class Action Litigation Act. Let your Representative know that you support consumers’ rights and that you want to retain the right to use class action litigation to hold corporations accountable for wrongdoing.

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