There’s just something so satisfying about companies having to pay class action settlements. Maybe it’s the feeling of justice and seeing wrongs righted. Maybe it’s knowing that even the biggest companies will have to pay for deciding to take advantage of consumers. Maybe it’s that they often have a David vs Goliath feel, the regular everyday Americans taking on the big, rich corporations.
Regardless of the reason, we can all agree that it’s nice to see corporations being held accountable for their actions. Sometimes this means settlements amounting to BILLIONS of dollars. And there have been many with compensations in the billions. GJEL Accident Attorneys recently put out a list of the largest class actions lawsuits and settlements. Let’s take a look at the top 5.
- The Tobacco Settlement: $206 Billion
Dollars- In 1998, 46 states came
together to take on the leading tobacco companies. In addition to having to pay
the $20d Billion, the companies also had to adhere to much more strict
advertising and marketing restrictions. It is also notable just how large this
settlement is, considering it is $186 billion higher than the next largest
settlement.
- BP Gulf of Mexico Oil Spill: $20 Billion Dollars
– In 2016, BP was held accountable for
claims of environmental damage worth an estimated $20 billion dollars. The majority of the funds covered federal
claims and penalties while the remainder went to state and local governments
- Volkswagen Emissions Scandal: $14.7 Billion
Dollars – In 2015 Volkwagen admitted to cheating emissions tests by installing
secret software on their diesel vehicles, and then in 2016 a $14.7 billion
dollar settlement was approved by a federal judge. The funds from this
settlement went to cash payments to hundreds of thousand of vehicle owners, as
well as vehicle buybacks at market value (prior to the scandal).
- Enron Securities Fraud: $7.2 Billion Dollars –
The settlement was approved by a federal judge in 2008, resolving claims that
Enron had defrauded its investors prior to declaring bankruptcy in 2001.
Shareholders who had purchased stock between Sept 1997 and December 2001 were
eligible for the payout.
- WorldCom Accounting Scandal: $6.1 Billion Dollars – In 2005 a federal judge ordered telecommunications company WorldCom to pay $6.1 billion in settlements. The payouts were to go to over 830,000 individual and institutional investors that suffered from the company’s collapse in 2002.
To learn about even more class action payouts in the billion dollar range, check out the whole list from GJEL Accident Attorneys here: https://www.gjel.com/blog/largest-class-action-settlements.html sp;