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Class Actions

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When a defendant’s misconduct damages many people, yet the individual amounts of damage at issue cannot justify the expense of individual litigations, a class action may be the only way those harmed can obtain relief. Diamond McCarthy regularly prosecutes class actions on behalf of hundreds—or thousands—of persons harmed by a defendant’s widespread misconduct. We have recovered tens of millions of dollars on behalf of classes. For example:

  • We obtained class certification on behalf of a class of thousands of persons that contracted with Aaron Federal Bonding Company and two sureties for the posting of immigration bonds. We successfully defeated the defendants’ 23(f) petition for interlocutory review of the district court’s class certification decision, summary judgment motions, and motion for decertification. The case settled on the eve of trial for $5.2 million and substantial equitable relief.
  • After completion of the class action against Aaron Federal Bonding Company, we pursued a class action against a second immigration bond company—AAA Bonding Agency, Inc.—and its surety to recover, on behalf of our clients and the class, alleged overcharges of fees. This case settled prior to the completion of discovery for a substantial benefit to the class.
  • We were counsel for the City of San Antonio and a class of Texas cities in litigation involving the failure of on-line hotel booking companies to properly pay hotel taxes.
  • We represented a class of public bondholders in litigation arising out of the bankruptcy proceedings in New York and Toronto of Livent, Inc., one of the largest producers of Broadway shows in the world. Damages in that case topped $125 million.
  • We represented a class of more than 1,000 investors in litigation in San Antonio, Texas arising out of the InverWorld bankruptcy proceedings in Texas, Grand Cayman, and London.

Although the class action is an important tool in obtaining justice, its misuse can lead to injustice. In addition to representing plaintiff classes, we also have substantial experience in defending against class actions, especially in the financial and oil & gas sectors. Indeed, most of our attorneys who now prosecute class actions cut their teeth in the area on the other side of the fence.  Our experience as plaintiffs’ counsel gives us an advantage when representing defendants—we know what our opposing counsel is worried about, and we know plaintiffs’ weak spots.