Is Your Company a Class Actions Target?
The answer, of course, is yes - if your company does business in Canada, it is almost by definition a target for entrepreneurial plaintiff-side class actions lawyers. This is particularly true if your company does business in one of Canada's class actions havens, like the province of British Columbia.
The better question is whether or not your company is a "high-risk" class actions target.
Your company may be a "high-risk" target if any of the following apply to it:
- your company, or a related company, has been the subject of a class action in the U.S. or elsewhere in Canada. Canadian plaintiff-side class actions lawyers make excellent use of precedent proceedings (and settlements) - in fact, in many cases, Canadian plaintiff-side class actions lawyers enter into formal collaborations with their U.S. counterparts.
- your company has been the subject of regulatory or governmental activity or scrutiny in the U.S. or Canada. Where there has been a product recall, formal guidance released by a regulator, a regulatory investigation or hearing, or other governmental or regulatory activity, a class action very often follows.
- your business is getting lots of media attention. Are you the biggest? The most successful? An innovator? A leader in a new industry? Did you just change your business approach?
- you are in a traditional "deep pocket" industry. As just one example, plaintiff-side class actions lawyers seem endlessly creative in coming up with bases for lawsuits against financial institutions.
Now that you have identified your company as a "high-risk" target (or not), what's next?
Future blog posts will describe some proactive steps you can take, as well as strategies to deal with life after you've been sued.
"deep pocket" industry class actions target entrepreneurial high-risk lawsuits plaintiff-side