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.