[Note: GJEL Accident Attorneys Does Not Handle Class Action Lawsuits]
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It’s not every day that companies agree to pay $2 billion or more to compensate the victims of irresponsible corporate behavior. But of course this is one of the biggest class action settlements.
Class action settlements of this magnitude are historic. They are also a matter of huge public interest. And yet, it’s not easy to compile a complete list of these cases.
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This is partly because class action settlement amounts are a moving target until payments are made, long after the parties strike a deal. To make matters even more complicated, defendants sometimes reach separate settlements during litigation. Even if all parties agree to settle, the court must review and approve distribution plans, and the court of appeals can review them too.
In March 2017, for example, the US Supreme Court closed the book on a $7.5 billion settlement with Visa and MasterCard, resolving claims that retailers had overpaid on credit and debit card fees.
The Supreme Court declined to review a lower court ruling that the settlement was unfair to some retailers who stood to receive little or no benefit from the case.
In 2008, the Supreme Court squashed another multibillion-dollar settlement, cutting total damages in litigation over the Exxon Valdez oil spill, originally pegged at $5 billion, down to $1.5 billion.
There have been many class action lawsuits that have reached billions of dollars of settlements and verdicts.
Contents hide
1 A List of The Biggest class action settlements
1.1 1. Tobacco settlements for $206 billion [The Largest Ever]
1.2 2. BP Gulf of Mexico oil spill $20 billion
1.3 3. Volkswagen emissions scandal $14.7 billion
1.4 4. Enron securities fraud $7.2 billion
1.5 5. WorldCom accounting scandal $6.1 billion
1.6 6. Fen-Phen diet drugs $3.8 billion
1.7 7. American Indian Trust $3.4 billion
1.8 8. Silicone breast implants $3.4 billion
1.9 9. Cendant accounting fraud $3.2 billion
1.10 10. Tyco accounting scandal $3.2 billion
1.11 11. AOL Time Warner accounting fraud $2.5 billion
1.12 12. Nortel accounting fraud $2.5 billion
1.13 13. Actos diabetes drugs $2.4 billion
1.14 14. Bank of America acquisition of Merrill Lynch $2.4 billion
1.15 15. Foreign exchange price fixing $2.3 billion
1.16 16. USDA racial discrimination $2.3 billion
2 Massive Class Action Cases not included in the list
3 Other Notable Class Action Settlements
3.1 Related Articles:
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A List of The Biggest class action settlements
We’ve done our best to include all of the largest class action settlements of $2 billion or more, at this time. Do you know of a case that should be added? Let us know by posting a comment here or on one of our social media pages.
1. Tobacco settlements for$206 billion [The Largest Ever]
In 1998, Philip Morris, RJ Reynolds, and two other tobacco companies agreed to a $206 billion settlement, at a minimum, covering medical costs for smoking-related illnesses. Attorneys general for 46 states participated in the settlement, providing annual payments over 25 years. This is not a traditional class action due to the involvement of public prosecutors, but the agreement resolved longstanding liability in class action litigation for the tobacco industry. Many participating states have been criticized for using the settlement funds as collateral for bond financing, putting money into public accounts sooner but reducing the overall settlement value after bonds are repaid with interest.
2. BP Gulf of Mexico oil spill$20 billion
In 2016, a federal judge in New Orleans granted final approval to an estimated $20 billion settlement resolving civil claims over environmental damage from the Deepwater Horizon oil spill. Most of the funds cover federal claims and penalties, while approximately $5 billion to $6 billion provides payments to state and local governments. Like the tobacco settlements above, this is not a traditional class action because it was led by public prosecutors rather than the plaintiff’s bar. Some legal observers criticized the settlement for allowing BP to claim $15 billion of the settlement cost as a tax write off.
3. Volkswagen emissions scandal$14.7 billion
In 2016, a federal judge in San Francisco approved a $14.7 billion settlement resulting from a Volkswagen scheme to cheat emission tests on its diesel cars. The settlement provides funds for vehicle buybacks at market values prior to the scandal, plus additional cash payments for 475,000 diesel car owners.
4. Enron securities fraud$7.2 billion
In 2008, a federal judge in Houston approved a $7.2 billion settlement resolving claims that the energy trading company Enron defrauded shareholders prior to declaring bankruptcy. JP Morgan Chase, Citigroup, and the Canadian Imperial Bank of Commerce provided over 90 percent of the settlement funds. About 1.5 million individual and institutional investors were expected to receive payments.
The settlement includes a $2 billion deal between Citigroup and the University of California, the lead plaintiff that represented Enron investors. Former Enron executives Kenneth Lay and Jeffrey Skilling were convicted of conspiracy and fraud for their roles in the scandal.
5. WorldCom accounting scandal$6.1 billion
In 2005, a federal judge in New York concluded settlements totaling approximately $6.1 billion in shareholder fraud litigation against the telecommunications company WorldCom. New York State Comptroller Alan Hevesi led the case on behalf of WorldCom stock and bondholders, including New York State’s public pension fund. JP Morgan Chase agreed to pay $2 billion of the total. Other banks involved in the settlement include Bank of America and Citigroup. Former WorldCom CEO Bernie Ebbers and CFO Scott Sullivan have served jail time for their part in the WorldCom accounting scandal.
6. Fen-Phen diet drugs$3.8 billion
In 2000, a federal judge in Philadelphia approved a $3.75 billion settlement over a diet drug known as fen-phen that had been associated with potentially fatal heart valve damage. Six million people reportedly used fen-phen, sold by American Home Products, before it was pulled from the market in 1997. The settlement provides up to $1.5 million to users, depending on their injuries and how long they used the drug.
7. American Indian Trust$3.4 billion
In 2011, a federal judge in the District of Columbia granted final approval for a $3.4 billion settlement over American Indian claims that the federal government had mismanaged funds in land trust accounts dating back to the 19th century. The case stems from a government practice of leasing out tribal lands for agriculture, mining, and other extractive industries, then distributing revenues to American Indians. The court authorized $1,000 payments to about 325,000 members of the class starting in 2012.
8. Silicone breast implants$3.4 billion
In the mid-1990s, producers of silicone gel breast implants agreed to resolve claims that they had exposed women to autoimmune and connective tissue disorders. The manufacturer’s group, led by Dow Corning, initially settled for $4.75 billion, but the settlement collapsed because the number of claims exceeded expectations, according to California Law Review. The remaining manufacturers, including Bristol-Myers Squibb, ultimately settled for $3.4 billion, and Dow Corning resolved its claims in bankruptcy court.
9. Cendant accounting fraud$3.2 billion
In 2000, a federal judge in New Jersey approved a $3.2 billion settlement based on shareholder claims that a merger had inflated the value of Cendant Corp., a travel and real estate company that owned Ramada Inns and other well-known brands. Once investors discovered accounting irregularities, Cendant stock lost $14 billion in a single day.
Pension funds for California state employees, New York state employees, and New York City employees represented Cendant shareholders as lead plaintiffs. Cendant chairman Walter Forbes and vice chairman Kirk Shelton were both imprisoned on conspiracy charges and ordered to pay over $3 billion each in restitution.
10. Tyco accounting scandal$3.2 billion
In 2007, a federal judge in New Hampshire approved settlements worth $3.2 billion to resolve claims that Tyco International executives enriched themselves at shareholders’ expense. Tyco agreed to pay nearly $3 billion while its former auditing firm PricewaterhouseCoopers paid the rest. Tyco’s former CEO Dennis Kozlowski served six and a half years in prison and paid $167 million in restitution and fines for his role in the scandal. Former CFO Mark Swartz also served prison time and paid $72 million in restitution and fines.
11. AOL Time Warner accounting fraud$2.5 billion
In 2006, a federal judge in New York approved a $2.5 billion settlement over an America Online practice of inflating advertising revenue before and after its merger with Time Warner. The Minnesota State Board of Investment led a group of 625,000 shareholders, bondholders, and institutions in the case against AOL Time Warner and the auditing firm Ernst & Young.
12. Nortel accounting fraud$2.5 billion
In 2006, two federal judges in New York approved a $2.45 billion settlement involving the alleged recording of phony sales at the telecommunications company Nortel Networks. The deal provides a combination of cash and equity from a new issuance of company shares to a group of investors led by public pension funds in New Jersey and Ontario.
13. Actos diabetes drugs$2.4 billion
In 2015, a federal judge in Louisiana reported that a Japanese drug company, Takeda Pharmaceutical, had agreed to pay $2.4 billion over claims that Takeda concealed the safety risks of its Actos diabetes drug before regulators warned that extended use could cause bladder cancer. A Minnesota labor union health care fund and individual consumers from around the US led the case against Takeda. The settlement administrator has reported that 9,820 people filed qualifying claims for the Actos fund.
14. Bank of America acquisition of Merrill Lynch$2.4 billion
In 2013, a federal judge in New York issued final approval to a $2.4 billion settlement stemming from the failure of mortgage-backed securities and Bank of America’s acquisition of Merrill Lynch & Co. Public pension funds in Ohio and Texas were among the lead plaintiffs in the case. An estimated 4 to 5 million investors were due to receive shares of the settlement.
15. Foreign exchange price fixing$2.3 billion
In 2015, the parties in federal court in New York reported a $2.3 billion settlement over price fixing in foreign exchange markets. The settlement was part of a wider action in the US and Europe netting over $10 billion from banks including Bank of America, Citigroup, JPMorgan Chase, and Morgan Stanley. A large group of pension funds and private investment funds represented the plaintiffs in the case. Federal prosecutors also extracted guilty pleas and additional fines from some of the banks involved in the civil settlement.
16. USDA racial discrimination$2.3 billion
In 2010, the US Department of Justice and the US Department of Agriculture announced a settlement over claims of racial discrimination in the administration of federal farm loan programs. Combined with an earlier partial resolution in the case, Pigford v. Glickman, the total settlement had reached $2.3 billion. The settlement provides cash payments and debt relief for approximately 20,000 black farmers.
Massive Class Action Cases not included in the list
This post does not include the $3.4 billion Toyota corrosion warranty settlement, because the settlement amount is based on projected future expenses for Toyota rather than up-front cash payments.
Many other multibillion-dollar settlements, like those for the victims of Bernie Madoff’s Ponzi scheme, are not included because they were obtained outside of class action proceedings.
Do you know of a class action lawsuit that should be added to the list? Let us know!
Other Notable Class Action Settlements
Below is a list of other notable class action settlements in the United States including some of the largest lawsuits in history.
State Teachers Retirement System of Ohio | $5.5 Billion |
New York State Common Retirement Fund | $11.3 Billion |
WorldCom, Inc. | $6.1 Billion |
Ohio Public Employees Retirement System | $4.4 Billion |
Teachers’ Retirement System of Louisiana | $4.3 Billion |
Cendant Corp. | $3.3 Billion |
Tyco International, Ltd. | $3.2 Billion |
Bank of America Corporation | $2.4 Billion |
Bank of America Corporation | $2.4 Billion |
Public Employees’ Retirement System of Mississippi | $2.3 Billion |
Merck & Co., Inc. | $1 Billion |
McKesson HBOC Inc. | $1 Billion |
American International Group, Inc. | $1 Billion |
American International Group, Inc. | $1 Billion |
Pfizer, Inc. | $486 Million |
Merrill Lynch & Co., Inc. | $475 Million |
Schering-Plough Corp. | $473 Million |
Raytheon Company | $460 Million |
Global Crossing, Ltd. | $447 Million |
Global Crossing, Ltd. | $447 Million |
Federal Home Loan Mortgage Corp. (Freddie Mac) | $410 Million |
Federal Home Loan Mortgage Corp. (Freddie Mac) | $410,000,000 |
GJEL Accident Attorneys does not handle class action lawsuits.
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Andy Gillin
Andy Gillin received his Bachelor’s Degree from the University of California at Berkeley and his law degree from the University of Chicago. He is the managing partner of GJEL Accident Attorneys and has written and lectured in the field of plaintiffs’ personal injury law for numerous organizations. Andy is a highly recognized wrongful death lawyer in California.
FAQs
What is the largest class action lawsuit in history? ›
1. Tobacco settlements for $206 billion [The Largest Ever] In 1998, Philip Morris, RJ Reynolds, and two other tobacco companies agreed to a $206 billion settlement, at a minimum, covering medical costs for smoking-related illnesses.
What is the biggest lawsuit ever won? ›Tobacco Settlement — $206 Billion
The Tobacco Master Settlement Agreement was filed in 1998 against the four largest tobacco companies in the United States. This included Philip Morris, R. J. Reynolds, Brown & Williamson, and Lorillard.
...
List of largest pharmaceutical settlements.
Company | Merck |
---|---|
Settlement | $650 million |
Violation(s) | Medicare fraud, kickbacks |
Product(s) | Zocor, Vioxx, Pepsid |
Lead plaintiffs receive the most money in class action lawsuits. They typically have the worst injuries and the highest damages.
Who has the biggest lawsuit in history? ›Number 1: The 1998 Tobacco Master Settlement Agreement
The 1998 Tobacco Master Settlement Agreement is also the biggest civil litigation settlement in US history. At USD246 billion, it is unlikely to be beaten any time soon. The case was brought against all the major tobacco companies by more than 40 US states.
Based on prior verdicts and settlements in cases involving hearing loss, we expect the trial value of 3M earplug cases to be somewhere between $25,000 and $300,000 per person (notwithstanding the over $2 million per person the plaintiffs received in the first hearing protection trials).
Is a class action settlement taxable income? ›The proceeds of a class action lawsuit settlement are taxable in situations where there is no physical harm, discrimination of any kind, loss of income, or devaluation of an investment.
What is the largest wrongful death settlement? ›1 | |
---|---|
Amount: | $160,000,000.00 |
Case: | Decedent Worker's Estate v. General Contractor, et al. |
Type: | Construction Accident, Negligent Supervision, Work Accident, Workplace Safety, Wrongful Death, Fall, Contractor Negligence, Negligent Tort |
State: | Massachusetts |
The McMartin Preschool Abuse Trial, the longest and most expensive criminal trial in American history, should serve as a cautionary tale. When it was all over, the government had spent seven years and $15 million dollars investigating and prosecuting a case that led to no convictions.
How much will I get from the plaid settlement? ›All affected customers will be paid about $13.50 each.
Should I cash a check from a class action settlement? ›
People have mixed feelings about class-action suits, and whether you cash class-action refund checks is up to you. Generally, if you get one, you probably paid a lot more in wrongful fees than you're getting back in the settlement. If you don't cash the check, the money may go back to the company.
Can you get a lot of money from a class action lawsuit? ›A class action usually ends in a settlement as opposed to going to trial. Settlements in recent years have averaged $56.5 million. However, a settlement does not guarantee a large payout for the individual members of a class.
What company has paid the largest criminal fine? ›Pfizer has often been reported as paying the largest criminal fine in history - with the pharmaceutical company falling foul of US regulators in 2009.
How much has Pfizer been fined? ›Company | Primary Offense Type | Penalty Amount |
---|---|---|
Pharmacia & Upjohn Company Inc. | kickbacks and bribery | $19,700,000 |
Pharmacia Corporation | False Claims Act and related | $18,960,210 |
Wyeth LLC | Foreign Corrupt Practices Act | $18,876,624 |
Pfizer Inc. | False Claims Act and related | $18,170,000 |
Pfizer promoted the sale of Bextra for several uses and dosages that the FDA specifically declined to approve due to safety concerns. The company will pay a criminal fine of $1.195 billion, the largest criminal fine ever imposed in the United States for any matter.
Is there a class action lawsuit against Walmart? ›This new Walmart class action lawsuit is just one of many to pile up against the retail giant in 2022. Walmart currently faces several recalls and class action lawsuits involving allegations of false advertising, misleading representations and failing to properly monitor its money transfer service.
What has Pfizer been found guilty of? ›Pfizer has been a “habitual offender,” persistently engaging in illegal and corrupt marketing practices, bribing physicians and suppressing adverse trial results. Since 2002 the company and its subsidiaries have been assessed $3 billion in criminal convictions, civil penalties and jury awards.
What are the odds of winning a lawsuit? ›By the Numbers: What Percentage of People Win Personal Injury Lawsuits? According to the U.S. Department of Justice, only about 3 percent of personal injury claims settle through a trial verdict. Most claims settle before trial. In other cases, the injured party voluntarily dismisses the case.
How much compensation will I get for hearing loss and tinnitus? ›But average settlement compensation payout range for tinnitus or hearing loss claims in an auto tort case seems to be $50,000 to $250,000.
What is the average payout for the military earplug lawsuit? ›The compensation ranges between $50,000 and $400,000. It is worthy of note that veterans who were injured by the 3M Combat Arms earplugs can also file a claim with the VA, as they also offer money in the form of disability compensation.
How long does it take to get a 3M settlement? ›
“How Long Will It Take 3M Earplug Lawsuits to Settle?” No outcome is guaranteed, but as the first cases go to trial in 2021, it seems likely that a global settlement in 3M earplug lawsuits may be reached within 1-2 years, based on similar mass tort product liability cases.
How much is the average Roundup settlement? ›The average Roundup lawsuit payout is between $5,000 to $250,000 in compensation, however, it's important to note that every lawsuit is different. The severity of the claimant's Roundup-related illness, and the extent of their exposure to Roundup can factor heavily into the final compensation amount.
How can I avoid paying taxes on a settlement? ›Spread payments over time to avoid higher taxes: Receiving a large taxable settlement can bump your income into higher tax brackets. By spreading your settlement payments over multiple years, you can reduce the income that is subject to the highest tax rates.
Can I sue the IRS for emotional distress? ›According to the district court, the IRS cannot be sued for emotional distress because of sovereign immunity. As in the case of unauthorized collection activities, similar action can be taken if the IRS improperly fails to release a lien on your property (Code Sec.
Are wrongful death settlements taxable? ›The settlement amount you receive in a wrongful death claim remains untaxable, according to the Internal Revenue Service (IRS) in IRS Rule 1.104-1. The IRS makes the wrongful death settlement non-taxable because it classifies as part of a claim that resulted from personal injuries or physical illness.
What happens to a settlement when a person dies? ›Depending on the design of the structured settlement, the early passing of a loved one may mean that the remaining guaranteed payments may continue to the estate of the initial recipient, or to a “secondary payee” that has been named specifically (like the beneficiary under a life insurance policy or RRSP).
What is the average wrongful death settlement in Florida? ›Wrongful death cases settle for a range of figures. The average in Florida is around $500,000 to $1 million. Damages can amount to more or less than this average, and the amount able to be paid depends on insurance coverage and the defendant's individual financial worth.
What case has the longest deliberation? ›The longest one took place in 2003 and lasted for 55 days. The jurors in Oakland, California, were asked to determine the fate of three police officers accused of assaulting and falsely arresting residents.
What is the longest trial ever recorded? ›The McMartin Preschool Abuse Trial, the longest and most expensive criminal trial in American history, should serve as a cautionary tale. When it was all over, the government had spent seven years and $15 million dollars investigating and prosecuting a case that led to no convictions.
What is the longest trial in the world? ›The trial ran for 919 days from 14 July 1987 to 18 January 1990, and ended with the jury acquitting one defendant (Virginia McMartin) on all counts and deadlocking on the other (Ray Buckley). The McMartin Preschool Trial was a defining event in a movement known as the "Satanic Panic", which swept the US in the 1980s.
Did Red Bull get sued for false advertising? ›
In May 2015, a federal New York judge granted a $13 million settlement against Red bull which resolved two class-action lawsuits alleging false advertising.
How many people are involved in the plaid settlement? ›The judge also ruled that the considerable cost for multiple attorneys on this lawsuit required paying a fee of $11 million. In November, the federal court preliminarily approved the settlement. Out of the approximately 98 million eligible class members, five submitted timely objections.
What are the odds of winning a lawsuit? ›By the Numbers: What Percentage of People Win Personal Injury Lawsuits? According to the U.S. Department of Justice, only about 3 percent of personal injury claims settle through a trial verdict. Most claims settle before trial. In other cases, the injured party voluntarily dismisses the case.
Is there a class action lawsuit against Walmart? ›This new Walmart class action lawsuit is just one of many to pile up against the retail giant in 2022. Walmart currently faces several recalls and class action lawsuits involving allegations of false advertising, misleading representations and failing to properly monitor its money transfer service.
Who is suing the Kardashian? ›Blac Chyna sues Kardashian family for $100 million for alleged defamation.
How much is Red Bull worth in dollars? ›According to the Statista, as of May 2021, Red Bull was the leading brand in the U.S. energy-drink market with a 23.3% percent market share and sales around 2.89 billion U.S. dollars.
Can energy drinks cause liver inflammation? ›Consumption of excess energy drinks has been linked to several instances of clinically apparent acute liver injury which can be severe and result in fatal or urgent liver transplantation.
How do I know if I qualify for Plaid settlement? ›Plaid denies these allegations and any wrongdoing and maintains that it adequately disclosed and maintained transparency about its practices to consumers. You may be a Class Member if you are a United States resident and you connected a financial account to an app between January 1, 2013 and November 19, 2021.
What is Plaid on cash App? ›Plaid is a technology platform and financial service provider that enables you to obtain information from your online bank, investment, and other accounts, and transmit that information to financial apps like Prepaid2Cash.
How do you get past the Plaid on the cash App? ›However, there are ways to bypass Plaid on Cash App if you'd rather not use it or manually enter your banking routing number, bank name and address, username, and password. Manually link your bank account or use your debit card to link your bank account instead of using Cash App without Plaid.
How long does it take to get paid after a settlement? ›
On average, the typical settlement can take up to six weeks for processing after the case is settled. This is due to a number of factors and may vary from one case to another. This is just an average on how long it will take to get paid after your case is finished but varies depending on a number of factors.
What percentage of personal injury claims are successful? ›What percentage of personal injury claims go to court? On average, it's estimated that the vast majority of cases are settled before a trial can begin. In fact, it could be as low as 5% of cases that reach court. And of those, around 90% tend to go in favour of the claimant.
How much is the Walmart lawsuit settlement checks 2022? ›Walmart hasn't admitted any wrongdoing but agreed to pay $35 million as part of a settlement to resolve these wage-and-hour allegations. This includes a $500,000 PAGA payment, $375,000 of which will be allocated to the California Labor & Workforce Development Agency as penalties.
Does Walmart have facial recognition cameras? ›Walmart teamed up with Facebook to launch the AR lens retail experience, which combines facial-recognition AR with Walmart's product assortment. Walmart is offering shoppers several connected commerce experiences this holiday season through its “Joy.
How much is the Walmart settlement payout? ›Walmart agreed to a settlement of $35 million to resolve class action lawsuit claims it failed to provide accurate wage statements to employees.