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The Importance Of Class Actions

The goal of every dishonest person is to make as much money as possible, with as little risk as possible.  They have discovered that, if....
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Richard Seymour Spoke In An Ethics Workshop As Part Of The Seventh Annual Conference Of The Institutional Investor Educational Foundation

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Richard Seymour Elected A Vice-chair Of The American Bar Association’s Labor And Employment Law Section

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Labor & Employment Newsletter
The Importance Of Class Actions


Cheaters and grifters are afraid of class actions, so they keep trying to come up with schemes to make class treatment unavailable.  Here’s why.

The goal of every dishonest person is to make as much money as possible, with as little risk as possible.  They have discovered that, if they cheat one person out of $100,000, that person will go to the police and hire a lawyer, and the stakes will make it worthwhile to fight to get the money back.  That does not look very attractive to cheats and grifters.

What they like to do is to cheat a thousand people out of $100, or to cheat ten thousand people out of $10.  Same reward, but very little risk.  The police do not have time for small swindles, and usually have no means of figuring out how many people are involved.  No one cheated out of $10 or $100 is going to hire a lawyer and spend many times that just to recover a small sum.

This is where class actions come in.  A class action lawsuit combines the claims of the thousand or ten thousand people, and all of a sudden there’s $100,000 at stake again.  Or a million dollars.  Or ten million.

At a time when it can cost a thousand dollars a day for deposition transcripts with video, and when case expenses can run into six or seven figures not even counting attorney time, class actions are the same as David’s slingshot.  They give ordinary people the ability to win over Goliath the Grifter.

That’s why some companies are trying to sneak waivers of class actions into their consumer agreements.  If those are upheld by the courts, David’s slingshot will be put into a safety deposit box and Goliath the Grifter can do whatever he wants with us.

What this means for all of us is that we need to keep our eyes open for the little frauds that can really ad up to big change for a Goliath, we need to take action early if we notice something like that happening, and we need to vote against political candidates who’ve gotten a lot of contributions from Goliath and are trying to help Goliath take away our slingshots.

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