Averting Class Action Lawsuits with Good Faith Practices

An experienced attorney and current partner in Winston & Strawn’s Los Angeles office, Neal Marder has contributed to a number of articles about defending against class action lawsuits. In a 2011 article titled “Class Actions: Act Early, Stay a Step Ahead of the Plaintiff’s Bar,” Neal Marder and his co-authors discuss several ways to avoid class actions, including the implementation of good faith business practices.

In cases involving damage claims, defendants typically have time to resolve the case before the plaintiff can file for a class action. As such, companies can reduce the impact of a claim by adhering to high standards of conduct and being responsive to communications and complaints from customers and employees. Businesses that employ these practices can resolve small disputes in a timely and effective manner, which prevents them from gaining momentum with a large class of individuals. If a pending class shrinks to a small number, most plaintiff’s attorneys will not be incentivized to pursue a class action lawsuit.