March 6, 2025
“Forever Chemicals” and Reverse Discrimination Claims Top $40 Billion in 2024
Class action lawsuits continue to pose significant financial risks for companies, especially in a pro-plaintiff litigation environment.
As outlined in the 2024 Duane Morris Class Action Review, the legal landscape is increasingly favoring plaintiffs, particularly in areas such as data privacy, data breaches, and diversity and ESG initiatives. Below are key insights from the review:
- Settlements Surpass $40 Billion for the Third Year in a Row
Class action settlements exceeded $40 billion for the third consecutive year, totaling $42 billion in 2024. This ranks as the third-highest amount in two decades, following $51.4 billion in 2023 and $66 billion in 2022. These figures underscore the significant redistribution of wealth through class actions and the continued pursuit of high-value claims by plaintiffs’ attorneys. - PFAS and Reverse Discrimination Claims Gain Traction
- PFAS Litigation Surges PFAS (per- and polyfluoroalkyl substances), known as “forever chemicals” due to their persistence in the environment, drove some of 2024’s largest settlements. The highest PFAS-related class action settlement was more than double the next largest, with attorneys securing nearly $1 billion in fees. This wave of litigation is expected to continue as more companies face claims over PFAS in products and packaging, leading to supplier disputes.
- Reverse Discrimination Claims on the Rise The U.S. Supreme Court’s 2023 decision in Students for Fair Admission triggered a surge in lawsuits targeting diversity, equity, and inclusion (DEI) programs. Many cases involved claims that companies prioritized diversity over merit, allegedly using protected characteristics in hiring and employment decisions.
A jury in California found a tech company liable for intentional discrimination against Caucasian and non-Indian employees. The Supreme Court will soon resolve a federal circuit split on whether majority-group plaintiffs alleging “reverse discrimination” must meet a higher burden of proof, potentially expanding these claims.
- Data Breach and Privacy Class Actions Continue to Expand
Data breach litigation hit record levels in 2024, with filings doubling from 2022. Despite this increase, courts issued only five class certification decisions, suggesting many cases are settling before reaching this stage. Defendants appear willing to negotiate settlements, ensuring the continuation of these claims.
Illinois amended its Biometric Information Privacy Act in 2024, eliminating per-scan damages and reducing the financial threat of litigation. However, privacy class actions remain strong, shifting focus to internet activity tracking. Lawsuits claimed that common website tracking tools improperly shared user data. Some cases were dismissed early, but others resulted in sizable settlements, encouraging further litigation. - California Remains Ground Zero for Class Actions
California’s Private Attorneys General Act (PAGA) inspired more representative lawsuits than any other statute in 2024. PAGA allows employees to sue employers for labor violations on behalf of the state, leading to civil penalties. Plaintiffs filed over 9,464 PAGA notices in 2024—22% more than in 2023 and an astonishing 85,936% increase from 11 filings in 2006.
Despite 2024’s PAGA reform legislation, interest in these cases remains high. PAGA continues to serve as a workaround to workplace arbitration agreements. While the U.S. Supreme Court’s Viking River v. Moriana (2022) ruling held that individual PAGA claims can be arbitrated, some California courts have ignored this precedent, allowing plaintiffs to proceed with representative claims in court.
At over 650 pages, the Duane Morris Class Action Review – 2025 is available in print and as a fully searchable e-book.