As 2024 draws to a close, we reflect on a year pivotal for class action settlements. From groundbreaking decisions to impactful payouts, the year has highlighted the importance of holding corporations accountable and ensuring fair compensation for affected businesses. Here are some of the most significant milestones from this year:
1. Visa Mastercard Payment Card Settlement
The highly anticipated Visa Mastercard settlement reached a critical phase in 2024. This case, which addresses allegations of excessive interchange fees charged to merchants, saw two filing extensions as businesses continue to come forward to claim their share of the $5.54 billion settlement fund. Efforts to simplify claim submissions, including online portals and outreach campaigns, have been a focal point of this settlement’s administration. Meanwhile, attention is also turning to the upcoming Discover settlement, which promises to address similar concerns and offer further avenues for merchant relief.
Key Takeaway:
Businesses of all sizes were encouraged to file claims, but two filing extensions were needed to deal with administrative challenges.
2. Dealer Management Systems (DMS) Settlement
This settlement, involving major auto dealer management system providers CDK Global and Reynolds & Reynolds, compensated dealerships affected by alleged anticompetitive practices. Eligible dealerships received compensation for overcharges tied to restrictive contracts and limited market competition. With the claim window closing in late 2024, dealerships nationwide were reminded of the importance of reviewing their eligibility.
Key Takeaway:
This case reinforced the necessity for businesses to stay vigilant about market practices and contract terms, ensuring they’re not unknowingly affected by anticompetitive behavior.
3. Blue Cross Blue Shield Antitrust Settlements
This year, the $2.67 billion settlement addressing anticompetitive practices by Blue Cross Blue Shield affiliates is nearing its distribution phase. Employers and individual policyholders will soon benefit from the payout, which addresses decades of restricted competition and inflated healthcare costs.
Additionally, the Blue Cross Blue Shield Provider Settlement has been announced, with a settlement fund of $2.8 billion, believed to be the largest antitrust healthcare class action settlement in history. This new settlement resolves similar antitrust claims brought by healthcare providers and underscores continued efforts to foster fairness and transparency within the insurance industry.
Key Takeaway:
Policyholders and providers alike will soon see tangible benefits from persistent legal action, demonstrating the power of collective redress in addressing systemic issues.
4. Opioid and Pharmaceutical Settlements
The opioid crisis has spurred significant legal settlements, marking key progress for affected parties. Third-party payors, including self-insured health plans, reached their first opioid-related agreements in 2024, securing $378 million through settlements with pharmaceutical distributors and McKinsey & Company. Additionally, a $651 million settlement was secured for acute care hospitals related to the opioid crisis, offering much-needed compensation for hospitals addressing the financial burden of treating opioid-related conditions.
In parallel, the Generic Pharmaceuticals Pricing Antitrust Litigation has advanced with substantial settlements. Direct purchasers have secured $395 million to date, while recent agreements include a $10 million "ice breaker" settlement for end payors and a $5 million fund for indirect resellers like hospitals and independent pharmacies. With dozens of defendants and over 100 drugs at issue, this expansive litigation continues to unfold, promising further developments ahead.
Key Takeaway:
Pharmaceutical settlements in 2024 highlighted the industry's reckoning with antitrust practices and the fallout from the opioid crisis. Businesses, from hospitals to third-party payors, now have opportunities to reclaim costs tied to these historic challenges, with ongoing cases promising further redress.
5. Food Industry Settlements
This year also witnessed significant class action settlements in the food and beverage industry. Notable cases included lawsuits against manufacturers accused of false advertising and mislabeling products as "organic" or "natural" when they contained artificial ingredients. Ongoing price-fixing lawsuits in the food industry, specifically in the protein sector, continue to progress. Incoming settlements for commercial indirect resellers in the broiler chicken price-fixing case are expected, and defendants settled with consumers just before trial. Other related cases involving beef, pork, and turkey are still making their way through the courts, potentially leading to further settlements for consumers and businesses impacted by inflated prices.
Key Takeaway:
Food industry cases highlighted the importance of truth in advertising and fair pricing practices, ensuring that consumers and businesses are not misled or overcharged.
The Bigger Picture
2024 demonstrated the power of collective legal action in driving accountability and change. However, challenges remain, particularly in making the claims process more accessible and transparent. As we move into 2025, there is a clear need for continued vigilance, education, and advocacy to ensure settlements fulfill their promise of justice.
Looking Forward
With new cases on the horizon and ongoing efforts to improve settlement administration, the next year promises to build on the progress of 2024. Businesses, consumers, and legal professionals alike must remain engaged and informed to maximize the impact of these legal milestones.
What were your experiences with class action settlements in 2024? Share your thoughts or let us know if you need help navigating the claims process. Let’s continue working together to make revenue recovery as simple as possible.