The U.S. tobacco master settlement agreement (1998), valued at $206 billion, is the largest class action settlement in history. It’s infamous not just for the amount, but also for the radical changes in tobacco marketing that followed. The settlement is paid out to the class members annually, over 25 years, to cover the cost of treating the medical costs of treating smoking-related injuries.
While the tobacco settlement tops the list, it’s far from the only case where victims received billions of dollars in compensation. A data breach attorney at Mason LLP explains how this and other landmark class action lawsuits have shaped corporate accountability and highlights nine more record-setting settlements that round out the Top Ten.
Volkswagen emission reporting fraud
In 2016, Volkswagen settled a $14.7 billion lawsuit after a series of lawsuits were brought against the company for falsifying emissions tests on its diesel vehicles. This scheme affected 475,000 diesel car owners, providing them with compensation and the opportunity to sell their vehicles back at market value.
Enron securities fraud lawsuit
The Enron securities fraud (2008) may be one of the most notorious class action lawsuits. A federal judge approved a $7.2 billion settlement for 1.5 million investors who were defrauded by Enron.
Fen-Phen diet pills
Fen-Phen, short for the fenfluramine and phentermine combination in diet pills, skyrocketed in popularity in the 1990s. In 2000, a federal judge issued final approval of a $3.8 billion settlement for 6 million users who suffered potentially fatal heart valve damage after taking Fen-Phen.
American Indian Trust
In this case, the United States federal government was the defendant, accused of mismanaging funds in land trust accounts. Approximately 325,000 American Indian tribal members received a share of the 2011 $3.4 billion settlement .
Silicone breast implants
In 1999, several major silicone breast implant manufacturers were sued by women who suffered autoimmune and connective tissue disorders after receiving silicone breast implants. The initial settlement was $4.75 billion , although it was reduced to $3.4 billion; major manufacturer and lead defendant Dow Corning resolved its obligations in bankruptcy court.
AOL Time Warner accounting fraud
AOL Time Warner shareholders, institutions, and bondholders filed suit in 2006 against the communications giant and its auditing firm, Ernst & Young, for inflating advertising revenue both before and after the merger. The settlement is valued at $2.5 billion .
Actos diabetes drug
Pharmaceutical giant Takeda Pharmaceutical was sued for allegedly concealing the safety risks associated with its diabetes medication, Actos. The drug was linked to increased risks of bladder cancer with extended use. A class of 9,820 users of the Actos diabetes medication who developed bladder cancer each received a share of the 2015 $2.4 billion settlement .
Bank of America acquisition
Bank of America’s failed acquisition of Merrill Lynch and its mortgage-backed securities division led to a lawsuit filed by lead plaintiffs that included public pension funds in Texas and Ohio. The total number of plaintiffs is between four and five million and will receive a share of the $2.4 billion settlement.
USDA racial discrimination
The federal government is named as a defendant again for the last spot in our Top Ten largest class action settlements. The U.S. Department of Justice and the U.S. Department of Agriculture were sued for racial discrimination. Approximately 20,000 black farmers will receive a portion of the $1.25 billion settlement , which is allocated for debt relief and other losses.
Have you been harmed due to the negligence or oversight of a large corporation? You can fight back by initiating or joining a class action lawsuit. Call Mason LLP today at (202) 429-2290 to learn your legal options with a class action lawyer.