Dramatic Ranges of Potential Exposure Across Risk Levels
Exposure levels vary greatly from company to company within each level of risk but are high across all categories. In the bet-the-company category, 75 percent of cases have exposure of $15 billion or more. Even in class actions categorized as routine, exposure remains high with 75 percent of cases having exposure of $2.1 million or more.
Outside Counsel Fees in Class Actions Are on the Rise
As financial exposure and potential impact grows, companies spend more on outside counsel to help manage class actions and contain risk.
For Most Companies, Insurance Does Not Cover Class Action Defense Costs
Just 28 percent of companies reported that insurance covers a portion of their class action defense costs, and the portion of defense costs that are covered is reported to be 30 percent or less.
How Companies Manage Class Actions
The number of in-house attorneys managing class actions varies widely by company. Although a handful of organizations report as many as 20 attorneys work on class actions, on average, companies rely on three to four attorneys to handle their class action work.