Class Action (CLE)

The COVID-19 pandemic is reshaping antitrust law enforcement across the globe. Recognizing the need for a closer cooperation among private businesses, the US government seems to be more flexible now in reviewing COVID-19-related competitor collaborations. In April, both the Department of Justice (DOJ) and the Federal Trade Commission (FTC) announced the expedited seven-day evaluation procedure, which typically takes months for traditional business reviews.

Prompted by the Biden administration’s aggressive focus on market competition, the past year has witnessed notable antitrust enforcement activities in several key industries. Furthermore, recurring debates over class certification standards continue to shake up the legal landscape for antitrust lawsuits.

Class actions remain at the forefront of in-house counsel’s concerns and top legal spend.

The rising competition among several industries including the healthcare and digital platforms has continuously challenged economic fairness and posed compliance hurdles for practitioners specifically under the Sherman Act. Some of the violations include price fixing, rigging contract bids, and allocating consumers between businesses that should be competing for them.

In the class certification stage, plaintiffs bear an evidentiary burden to satisfy Rule 23 of the Federal Rules of Civil Procedure. District courts are also required to consider all probative evidence regardless of overlaps or other merit issues, especially with the inclusion of unharmed class members. Recent decisions released by the Supreme Court in Goldman Sachs and TransUnion clearly define this mandate.

Consumer financial services companies continue to face unprecedented regulatory and enforcement scrutiny and increasing litigation. Several types of consumer class actions cause disruption to many businesses. Consequently, the increasing number of this type of litigation as well as its size, complexity, and interplay with existing regulatory actions may damage businesses if not handled correctly.