From the day a company is served with a summons and complaint in a putative class action, the clock starts ticking for in-house counsel on several important decisions.
Although class actions are scary for large companies, they are downright terrifying for smaller businesses. Certainly, an adverse judgment in a class action could easily bankrupt a small company, but even the mere filing of a class action could easily drain resources long before the case reaches a jury.
The threat of class action lawsuits is the No. 1 concern for many in-house attorneys, and for good reason: class actions cost U.S. companies $2 billion annually.