Fraudulent Claims in Class Actions and Mass Torts Are Skyrocketing https://t.co/BsRMBbedX9
Data Breaches, ADA Compliance Drive Class Action Increase, Report Finds https://t.co/jACU1pyCM1
Fraudulent claims have exploded in the last year, siphoning money out of settlements and threatening the class action system itself, said lawyers and claims administrators interviewed by @Reuters https://t.co/HQ8JcJUMw7 https://t.co/vNRCbdg6w4
In the past year, the U.S. class action settlement system has been significantly impacted by an influx of fraudulent claims, which have exploded according to multiple sources. Artsana, a company known for its child car booster seats, settled claims last year, offering $50 to affected customers after allegations of misleading product usage instructions. However, this settlement and others are now being exploited by scammers, leading to financial losses for genuine claimants and posing a threat to the integrity of the class action system. Lawyers and claims administrators have expressed concerns about the increasing scale of this issue, which is siphoning funds from rightful recipients.
