Some 69% of U.S. corporate counsels think the Class Action Fairness Act of 2005, passed early this year, will have no impact on the liability their companies face, according to a survey by Fulbright & Jaworski, a law firm involved in securities litigation. Some 16% of respondents predicted the act would lead to decreased liability, while 6% said it would increase their company's liability.
Also, 49% of respondents think the act will have no impact on U.S. litigation costs, while 28% said they believe the act will lead to a decrease in U.S. litigation costs and 13% believe it will increase expenses.
"The bigger the company, the more likely it is to end up at the receiving end of a class action," the survey found. "While only 5% of smaller companies were targeted with class actions in the past year, nearly 40% of companies with revenues of $1 billion or more were served with class-action lawsuits last year."
Most of the 354 corporate counsels responding to the survey held the title of general counsel or chief legal officer.