Denver partner Paul Karlsgodt authored an article, "The Financial Crisis: A Boon for Class Action Lawyers?," which was published in the inaugural January 2009 edition of Sue magazine.
According to Karlsgodt, "The recent financial meltdown has created hardship for Americans in all walks of life, and like everyone else, lawyers are feeling the impact of economic downturn. But with every challenge comes opportunity. Increased opportunities for lawyers practicing litigation, especially class action litigation, would seem to be an inevitable side-effect of the financial crisis. A review of recent trends in class action litigation seems to support this hypothesis."
Karlsgodt goes on to provide information on the various class actions brought in the last few years, including subprime-related, securities fraud and ERISA class actions. Karlsgodt also notes that "class actions filed directly against mortgage lenders and brokers have seen mixed results." More generally, Karlsgodt continues, the poor economy provides a fertile environment for several other types of class action lawsuits, including "the potential for litigation involving the Fair Debt Collection Practices Act (FDCPA) and . . . litigation involving mass layoffs, reductions-in-force, discrimination, and other labor and employment issues."
According to Karlsgodt, while "there can be little question that the subprime mortgage crisis, the financial meltdown that followed, and the poor economy generally will continue to provide ample fodder for class action litigation. But the question remains: Who will benefit from this litigation?" Karlsgodt goes on to discuss how lawyers and law firms may be affected by these recent developments, from both the defense and plaintiffs' side.
To read the full article (PDF), click here. Reprinted with permission from SUE Magazine (www.suemagazine.com).