Study Disputes View of Costly Surge in Class-Action Suits

A new study has concluded that both the average price of settling class-action lawsuits and the average fee paid to lawyers who bring them have held steady for a decade, even though companies have said the suits are driving up the cost of doing business, hurting the economy and lining lawyers' pockets.

The issue is a fiercely divisive one that has fueled a heated debate over whether to place limits on class-action lawsuits. Legislation to curb class actions is a priority of President Bush and many Republicans in Congress....

According to the study, the average settlement over the 10-year period was $100 million in inflation-adjusted 2002 dollars...."The mean client recovery has not noticeably increased over the last decade," the professors wrote.

The study also found that "neither the mean nor the median level of fee awards has increased over time." ...

--New York Times