Kick ‘Em When They’re Down: When Regulation Triggers Litigation
One of the things that struck a chord with attendees of our recent legal reform conference was our discussion of class actions that are filed in the wake of government enforcement actions. Under these circumstances, companies end up taking a double hit - first from government regulators, and then from plaintiffs’ attorneys acting under the cloak of consumer protection. Hastily filed consumer class actions can compromise the government’s ability to effectively regulate, and often provide only marginal additional benefits to consumers, yet they are increasingly common. In just the past few days, news broke that two such cases have been filed in New Jersey shortly after high-profile government enforcement actions were announced.