Class action lawyers' payout face court challenge

A case before California's highest court could mean the end to class-action lawyers receiving a percentage of the payouts they achieve for their clients.

The payouts attorneys receive average 25 per cent in the US, but the case being heard in the coming months by the Supreme Court of California is calling for lawyers to be paid only for the hours they have worked on each case. The ruling will affect how fees are paid in class actions filed in state courts in California and could influence judges in other jurisdictions.

Attacks on class actions

The challenge comes at a time of intensifying attacks on class actions, with US Supreme Court decisions in recent years having limited the ability to bring such cases and many companies adding clauses to contracts with employees and customers that require disputes to go to arbitration. Source: The Wall Street Journal

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