USA – ILLINOIS Trends and Developments Contributed by: Steven P Blonder, Much Shelist
In the employee arena, labour and employment class actions continue to rise, and companies report spending more money on defending such suits than on any other form of class action. The increase in such claims may reflect increasing employee dissatisfaction with pay or hybrid work policies, as well as a general increase in work- place activism. Effect of Economic Trends on Litigation It is no secret that, on a global basis, interest rates have remained fairly high and countries are suffering from high inflation. The labour market remains tight. Not surprisingly, broader eco- nomic trends such as these stretch corporate resources. This, in turn, leads to circumstances that have an impact on litigation. Deal-making has been slow throughout the past year. As a result, the first half of 2024 saw a record low in the number of federal lawsuits filed challenging a merger. Indeed, only two such suits were filed. That being said, in recent years, companies have entered into joint ventures, combinations or other forms of transactions. Now, in light of the economic challenges facing many compa- nies, lawyers are being engaged to examine the finer points of those deals in order to provide a roadmap for companies to extricate themselves from a “losing” business relationship. The likely result? A lawsuit. Continued Rebirth of Antitrust Litigation During the past few years, antitrust claims have emerged after nearly two decades of slumber. This is particularly true in the technology and entertainment spheres. Among examples of this are the claims brought against Apple in March 2024, alleging that the company exploited its monopoly position to thwart competition from
companies offering applications that competed with Apple products. Two months later, claims were asserted against Live Nation Entertainment and Ticketmaster (a subsidiary of Live Nation Entertainment), alleging that the company was engaging in anti-competitive behavior in the live concert industry. These are just a few of the more high-profile antitrust filings requiring expenditure on significant legal resources. Technology and Litigation Throughout the past decade, business has become more technology-centric as paper forms increasingly become a relic of the past. Businesses depend on cloud computing and other online activities to compete on a global scale. Massive amounts of data are collected and stored as part of companies’ regular busi- ness operations. However, as a result of this technological shift, the news is replete with stories about data breaches and cyber-attacks in companies ranging from the Fortune 100 to small start-ups. Inevitably, following such a breach, lawsuits are filed. Some of the claims are being brought as class actions by plaintiffs’ lawyers on behalf of consumers; others are asserted on behalf of the party whose IT system was hacked against their insurers or other accountable parties, in order to seek compensation for any damage that was suffered. Data breach class actions reflect this trend, increasing from approximately 200 filings in 2020 to more than 1,300 such suits in 2023. This trend continued throughout 2024. As long as data protection laws continue to be strength- ened worldwide, new governmental regulations continue to be promulgated and massive set- tlements are announced, no one should expect
1489 CHAMBERS.COM
Powered by FlippingBook