2024 marked a record-breaking year for class action litigation, with settlements exceeding $40 billion for the third consecutive year. All signals indicate that 2025 will be another big year for class action litigation. Below are some of the most significant class action trends to watch for.
AI-Related Class Actions
The rapid rise of AI-powered tools and platforms has sparked a wave of lawsuits, with many focusing on bias and discrimination, privacy violations, and intellectual property.
Bias & Discrimination
AI algorithms used in hiring, lending, and facial recognition have been accused of disproportionately impacting certain groups. Class actions are being filed against companies for alleged discriminatory AI decision-making in employment and financial services.
Privacy Violations
AI models often rely on massive datasets, sometimes scraping personal information without proper consent. Several lawsuits claim that AI companies have violated data privacy laws, such as the California Consumer Privacy Act (CCPA) and Illinois’ Biometric Information Privacy Act (BIPA).
Intellectual Property & Copyright
A growing number of lawsuits involve AI-generated content and whether AI companies have improperly used copyrighted materials to train their models. This includes litigation by artists, writers, and software developers claiming unauthorized use of their intellectual property.
Misleading Advertising
Class action lawsuits targeting misleading advertising are on the rise. Several AI companies have already been involved in litigation around making exaggerated claims about accuracy, efficiency, or capabilities. Companies are also being targeted for promoting environmentally friendly or socially responsible products without substantial evidence are being sued under consumer protection laws.
Cybersecurity
With an increase in data breaches and ransomware attacks, class action lawsuits in cybersecurity are booming. Consumers and employees are taking legal action against companies for failing to protect their data. One of the primary claims is negligence in data protection – companies facing lawsuits for implementing inadequate security measures that lead to leaded consumer data.
Another trend is failure to disclose data incidents. Companies are required in some states to promptly disclose to consumers when they have been impacted by a data breach. Failure to do this can negatively impact a consumer’s ability to protect their data and set up monitoring services.
Follow RapidFunds for More Legal News and Insights
For more insights on legal trends and more, follow RapidFunds on LinkedIn. RapidFunds has been providing post-settlement funding for almost 20 years. Post-settlement funding was created to help plaintiffs’ attorneys who find themselves in need of cash while awaiting receipt of pending contingent fees. We’ve completed over 4,000 transactions and have helped thousands of firms. Stop waiting for your legal fees and contact RapidFunds today.