Podcast Summary – Business Daily: "Why are more people suing businesses?"
Date: March 10, 2026
Host: Ed Butler, BBC World Service

Overview

This episode of Business Daily investigates the global surge in class action lawsuits – collective legal claims where large groups bring actions against powerful companies. It explores the roots and rise of these legal actions, their multi-billion dollar scale, their impact on businesses, the debate over who truly benefits, and legal and policy tensions surrounding their proliferation.

Key Discussion Points and Insights

1. The Rise and Mechanics of Class Actions

• Explosion in Cases:

  • Over 700 million consumers and businesses in the UK were named in class actions last year — about 10 times the UK population (03:00).
  • Growth is especially strong regarding claims targeting big tech companies.

• How Class Actions Work:

  • Class actions allow individuals with similar claims to collectively file against a defendant, often represented by one or a few named plaintiffs.
  • Claims can be structured as "opt-in" (members choose to join) or "opt-out" (all potential members included unless they withdraw), the latter expanding rapidly in Europe (07:13).

• Historical Context:

  • Roots traced to medieval Britain and disputes over church property (04:34).
  • In the US, class actions played a crucial role in civil rights, notably Brown v. Board of Education (05:05).

  “One black person in Topeka, Kansas, sued the Board of Education on behalf of all of the other black people in the school district. That case was a class action.” – Prof. Brian Fitzpatrick (05:05)

2. International Proliferation & European Trends

• Spread of U.S.-Style Litigation:

  • Mechanisms adopted in Europe, Australia, and Israel; opt-out regimes are especially attractive to claimants' lawyers (07:50).
  • Between 2018–2023, Europe saw damages claims of more than $164 billion, with settlements over $100 million apiece (04:15).

• Forum Shopping:

  • Legal teams target jurisdictions with favorable class action regimes (UK, Netherlands, Portugal). This ‘forum shopping’ is driven by the pursuit of easier procedures or higher expected returns (12:54).

  “Where is there an opt out regime? Because that's easy to bring the claim. Where is it easy to raise money for litigation funding?” – Seema Kennedy (13:00)

3. Sectors and Case Examples

• New Growth Areas:

  • Data protection and privacy (especially after cyber breaches).
  • Product liability, competition law, and emissions scandals ("Dieselgate") (08:13).

• Notable Settlements:

  • Disney paid $230 million in back pay (03:00).
  • Johnson & Johnson facing a UK suit involving 3,000 claimants (03:00).
  • Case against Amazon certified a class of 300 million Americans — possibly the largest ever (14:10).

  “The judge approved a class of 300 million Americans. That's the largest class action in history.” – Steve Berman (14:10)

4. Who Benefits? Consumers or Lawyers?

• Concerns about Profit Motive:

  • Critics argue class actions are increasingly lawyer and funder-driven, with consumers getting little from eventual settlements.

  • Early UK competition class action: less than 1% of settlement went to actual class members (19:02).

    “The settlement figure was up to 25 million pounds and only 0.8% of that money went to the class members. And that's, that's terrible.” – Kenny Henderson (19:02)

• Counterpoint – Access to Justice:

  • Advocates stress that class actions are often the only feasible way for ordinary people to challenge wrongdoing by large entities (18:09).

  “We could not survive as a court system if every single person who was injured by a product sued on their own… At the end of the day, there's nothing wrong with making a lot of money if the way you're making it is to do good for people.” – Prof. Brian Fitzpatrick (18:09)

5. Economic and Social Impact

• Burden on Business:

  • Concerns that class actions (especially opt-out systems) can hinder investment and innovation, and force costly settlements regardless of merit due to reputational and legal pressure (11:22, 13:25).
  • Forums are strategically selected ("forum shopping") to maximize settlement likelihood, sometimes linked to media campaigns.

  “There is definitely settlement pressure because these cases are litigated in the court, but they're also litigated in the media.” – Seema Kennedy (13:25)

• Checks and Balances:

  • Proponents argue class actions are not "unbridled" because judges act as gatekeepers to curb abuse (15:42).

  “It is not unbridled because you have judges and judges put the guardrails up. So it is not unbridled.” – Steve Berman (15:42)

6. The Call for Alternatives and Reforms

• Alternative Redress Sought:

  • Critics advocate for more use of ombudsmen and alternative dispute resolution to avoid costly, protracted litigation (17:10).

  “We would like to see a much bigger emphasis through businesses and government policymakers on the use of ombudsman and… alternative dispute resolution mechanisms in all their forms.” – Seema Kennedy (17:10)

Notable Quotes & Memorable Moments

• On the Virtue of Mass Claims:

  “There’s nothing wrong with making a lot of money if the way you’re making it is to do good for people.” – Prof. Brian Fitzpatrick (02:07, 18:47)

• David vs. Goliath Narrative:

  “It felt like David versus Goliath and I loved it.” – Steve Berman on why he entered class action litigation (16:10)

• Skepticism on Industry Paralysis:

  “I've been hearing that for 30, 40 years and I haven’t seen big industry paralyzed in any way. All the class action does is to make them accountable to follow the law and tell the truth.” – Steve Berman (14:58)

Important Timestamps

• 03:00 – Scale of class actions in the UK; focus on big tech.
• 04:34 – Historical origins of class actions.
• 05:05 – Classic example: Brown v. Board of Education.
• 07:13 – "Opt-in" vs. "opt-out" systems explained.
• 08:13 – European lawyer describes rapidly growing case types.
• 10:22 – Calls for balance, warning about cases primarily making money for lawyers.
• 13:00 – Discussion on forum shopping and litigation-driven strategies.
• 14:10 – Steve Berman on the scope of tech-based class actions.
• 17:10 – Push for more alternative dispute resolution.
• 18:09 – Arguments about court system efficiency and who benefits.
• 19:02 – Criticism over low payout percentages in some settlements.

Tone and Language

• The discussion features a balance of analytical commentary, cautionary perspectives, and some enthusiasm for the underdog narrative.
• Language ranges from pragmatic/legalistic (lawyers, advocates, critics) to personal and evocative (recollections of landmark civil rights cases and movie analogies).

Summary
This episode unpacks the phenomenon of class actions — their history, mechanics, explosive growth, and the fierce debate over their societal value. Are they a democratizing force ensuring wrongdoing is addressed, or primarily a lucrative business for specialized lawyers and funders, potentially stifling enterprise? As the practice spreads globally and adapts to new legal terrains, the episode poses provocative questions about the future balance between justice, innovation, and enterprise.