Class Action Lawsuits and Out-of-Court Settlements

An accomplished attorney with many years of experience in commercial litigation and class action lawsuits, Neal Marder currently works as a partner in the Los Angeles office of Winston & Strawn. In November 2011, Neal Marder and several associates at Winston & Strawn published an article titled “Out-of-Court Settlement Programs Can Avert a Class Action,” which discusses the potential value of settling in a timely fashion.

In the article, Marder argues that a quick settlement dissuades the court from completing a class certification that would enable plaintiffs to seek significant damages on behalf of a large group of individuals. Additionally, a quick settlement represents an equitable out-of-court solution and has the potential to counter negative publicity and restore goodwill with the company’s customers. Although settlements often require defendants to incur a large lump sum cost, they eliminate the need for extended litigation fees and prove themselves highly cost-effective in the long run.

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.