USA – ILLINOIS Trends and Developments Contributed by: Steven P Blonder, Much Shelist
Litigation Continues to Rise In today’s world, it is highly likely that any com- pany will find itself in a dispute, and that this dispute will lead to a claim being filed either in a court of law or with an arbitral body. Par- ticularly as the global economy continues to perform sub-optimally, many businesses find themselves experiencing financial challenges, supply stream interruptions, or even customers that do not want to pay what they are obligated to pay. Class action lawsuits continue to rise, employment-related claims are still permeating throughout the legal system, trade secret misap- propriation claims remain in vogue, data breach- es continue to foment litigation, and statutory claims are filed against companies on a regular basis. These are just a few of the many types of litigation that continue to play out on a daily basis before judges and arbitrators. All trends evidence that the number of lawsuits or arbitrations being filed continues to increase. Those trends further reflect that litigation is expensive, with electronic discovery contribut- ing mightily to the high costs. Data Shows Continuation of Class Action Claims The first half of 2024 has seen new trends emerge in the class action landscape. Securities class action filings have increased in the first half of the year, relative to where such filings stood in the latter part of 2023. More than 110 securi- ties class actions were filed in state and federal courts during the first six months of 2024. While cryptocurrency-related class actions decreased in number, six new securities lawsuits were filed alleging liability resulting from the use of AI. This trend will only continue to rise as AI is further embraced in everyday business operations. Likewise, current cases pending before the US Supreme Court regarding pleading requirements
for securities fraud class actions as well as con- cerning the disclosure of financial risk factors by public corporations may further open the court- house doors to new claims. During the first six months of 2024, class actions targeted three primary sectors – namely, tech- nology, biotech and manufacturing ‒ and those three sectors involved 70 class action lawsuits. On the settlement front, the first half of the year saw settlements of 40 class actions totalling more than USD2 billion for class members. The class action trends are not limited to securi- ties suits. Throughout the past few years, class actions involving Americans with Disabilities Act (ADA) compliance and data breaches have ranked among the fastest-growing areas of liti- gation. This exponential growth has not taken a breather so far in 2024. The ADA has been on the books for more than 30 years, leading to pro- found changes in access to public and private spaces as well as targeting discrimination based on disability. The growth of technology has transformed ADA enforcement by taking it into the digital world, as ADA class action suits today often revolve around virtual spaces. Maintaining an ADA-com- pliant website may prove more challenging than building a ramp or providing seating for those with disabilities. Many companies have begun using generative AI to maintain the accessibil- ity of their websites, which may have led to the continuing increase in ADA claims related to website accessibility. Simply put, counting on generative AI to maintain website accessibility and avoid compliance issues is no more reliable than using ChatGPT as a source for definitive or uncontroverted facts.
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