You’ve probably seen the ads. Emotional pledges promising you’ll get all the money you deserve. Urgent warnings that a certain medication has been recalled with no more evidence than someone shouting at you to “get your money’s worth.” In the theater of a class action lawsuit, billboard lawyers take center stage. They present themselves as champions of the injured, delivering compelling performances that promise justice for all. But behind the curtain, the story is often far less heroic. Individuals and businesses should be held accountable for genuine wrongdoing, and those who have been truly harmed deserve access to justice. Yet in too many cases, the incentives are misaligned.
On average, attorneys pocket nearly $1 million per judgment in consumer financial protection-related class actions while the victims receive just $32.35 each, according to a study by the Consumer Financial Protection Bureau.
The good news is there’s a faster, fairer way to handle disputes. It’s called individual arbitration, where instead of a lengthy and expensive courtroom battle, an impartial third party known as an arbitrator hears both sides and renders a decision. For individuals with relatively small claims, arbitration can provide a more practical avenue for relief. And the data back it up. Consumers win 42% of arbitrations compared to just 29% of courtroom litigations, according to the U.S. Chamber of Commerce’s Institute for Legal Reform.
