Consumer Class Action Defense
A class action lawsuit can pose significant legal jeopardy no matter what your company size, but despite the allegations and the number of zeros in the demand, there’s always a resolution that can keep the company on track. We’ve successfully defended and negotiated for companies sued in consumer class action lawsuits involving alleged false advertising, privacy breaches, fraud, and various prohibited advertising practices.
Tap into our experience defending class action lawsuits.
The stakes can be high in class action lawsuits filed over internet-related conduct. In stark contrast to offline businesses, in the online context marketing and billing practices are often identical for every consumer who purchases online, and small, moderately capitalized companies may engage in tens or hundreds of thousands of transactions with consumers. So, a class action lawsuit that seeks damages for all consumers who transacted with a company may threaten to bankrupt the company. This is especially the case in lawsuits that allege statutory damages for each consumer who transacted with a company online.
Companies who are sued in a class action choose Kronenberger Rosenfeld because our firm has two decades of experience representing a multitude of types of internet related companies. Knowledge and understanding of complex internet business models and technical processes is what differentiates our firm. We have had success in defending class actions by immediately delving into the complicated factual allegations and identifying problems with the plaintiffs’ cases before plaintiffs’ counsel has much invested in the case, making an early resolution of the case much easier. Simply put, our experience with internet-related companies and business models has led to better results for our clients in class action lawsuits.
We are relentless and aggressive litigators but also have the judgment to know when to craft a creative settlement. Often clients sued in class action lawsuits are in bet-the-company situations, and they have chosen our firm due to our experience and judgment in defending class action lawsuits.
- Represented a social networking app developer backed by over $350 million in venture financing in a TCPA class action lawsuit. Obtained a speedy settlement and voluntary dismissal of putative TCPA class action against the client. After early discovery and independent research by the Firm, it was found that the SMS text message at issue was initiated by the plaintiff’s acquaintance, not the client.
- Represented an online auction company in negotiating early nuisance settlement and voluntary dismissal of multi-million dollar putative Consumer Legal Remedies Act (CLRA) class action before the client was required to respond to the complaint, following a proffer of evidence to plaintiff’s counsel that demonstrated that the pricing disclosures at issue were clearly and conspicuously made to the plaintiff and other consumers prior to the consummation of the financial transaction.
- Defeated motion for class certification in hotly-contested, multi-million dollar consumer class action against internet advertiser by using arguments made by plaintiff in refusing to arbitrate—namely, that the version of the website plaintiff viewed did not contain certain disclosures—against him to demonstrate that plaintiff could not establish the requisite commonality or typicality. The case was resolved shortly thereafter through voluntary dismissal by plaintiff and no payment by the client.
- Obtained voluntary dismissal by plaintiffs of putative consumer class action lawsuit alleging insufficient disclosures of billing practices, with no payment by the defendant client.
- Successfully defended a marketer of short-term loans in a TCPA class action, obtaining a dismissal prior to class certification and without payment by the client.
- Successfully defended seller of nutraceutical products in class action alleging false advertising and involving dueling research reports about the effectiveness of the product. Obtained early dismissal at minimal expense to the client.