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Which brands ended up paying the biggest class action settlements in history? No one is perfect, but the brands covered today went above and beyond the pale when it comes to paying for their mistakes. While you might be familiar with some class action lawsuits and their eventual results, today’s list might end up shocking you. The payments for some of these class action suits are huge in comparison to lesser brands settling out of court.
Tobacco Settlements
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Starting our list of the biggest class action settlements is this massive one from various tobacco brands. Paying out a total of $206 billion leaves this as the biggest settlement in history. This isn’t your typical class action suit, either. This one involved public prosecutors while pursuing the likes of Philip Morris and RJ Reynolds.
BP Gulf of Mexico Oil Spill
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Most of us can agree that the Gulf of Mexico oil spill was an utter tragedy. British Petroleum ended up paying heavily for its role in the natural disaster. Like the aforementioned tobacco settlement, this was one pushed and pursued by public prosecutors to the tune of $20 billion.
Volkswagen Emissions Settlement
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Many companies try to position themselves as eco-friendly, especially in the automotive sector. Volkswagen came under fire after a 2016 ruling from a federal judge found them cheating on emission tests in the Bay Area of California. VW ended up having to pay $14.7 billion to buy back almost 500,000 vehicles at market value.
Enron
Enron is one of the massive scandals of the 2000s, and it also happens to be one of the biggest class action settlements in history. The fallout of Enron’s financial misdeeds left former executives Kenneth Lay and Jeffrey Skilling in jail while the plaintiffs received $7.2 billion in this class action suit.
WorldCom
The 2000s were rife with fraud it would seem. 2005 saw WorldCom settling for $6.1 billion thanks to its part in shareholder fraud. Much like Enron, this resulted in jail time for WorldCom’s former executives. The final payment ended up being one of the biggest class action settlements ever awarded once the dust settled.
Fen-Phen
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Some folks will do anything but exercise at a calorie deficit to lose weight. Unfortunately, the diet drug Fen-Phen, sold by American Home Products, could result in some nasty side effects. For the potential of severe heart damage, a federal judge ended up settling this suit for $3.8 billion. American Home Products would end up paying one of the biggest class action settlements in history following this.
American Indian Trust
One of the biggest class action settlements in history has its roots dating back to the 19th century. Few groups in the United States have been on the receiving end of constant marginalization like the indigenous tribes that once ruled the nation. This massive class action suit resulted in a payment of $3.4 billion, allotted to some 325,000 native peoples.
Breast Implants
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If you were around in the 90s, the proliferation of breast implants was everywhere. Unfortunately, this cosmetic procedure could result in some nasty side effects like connective tissue damage and the rise of autoimmune disorders. One of the biggest class action settlements focused on manufacturers like Dow Corning and Bristol-Meyers Squibb. The final tally left a massive payment of $3.4 billion for those affected by the implants.
Cendant
Another 2000s class action settlement focusing on fraud is upon us. Cendant was known at the time for its holdings in valuable real estate with the likes of Ramada Inn under their umbrella. Once news of their creative accounting got loose, the company ended up paying $3.2 billion for its misdeeds.
Tyco
You may have thought we were done with creative accounting suits, but there’s plenty more to go. Tyco lit up the headlines with its fraud scandal in the mid-2000s. Former executives faced jail time while the company ended up having to pay $3.2 billion in one of the biggest class action settlements of the time.
Nortel Networks
Telecom giant Nortel got into quite a sticky situation in the 2000s. Thanks to its part in some rather creative accounting, they ended up paying quite heavily. The first settlement, known as Nortel I, resulted in a payout of $2.7 billion.
AOL Time Warner
I wasn’t joking when it comes to accounting fraud. AOL and Time Warner’s merger in the 2000s ended up with one of the biggest class action settlements in history as a result. The newly merged company had to pay $2.5 billion for its role in inflating ad revenue shortly before the merger.
Actos
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Pharmaceutical suits end up having some very real health risks in their wake. For drug maker Takeda Pharmaceutical, concealing the safety risks of its drug Actos ended up costing them quite a bit. This resulted in one of the biggest class action settlements of the era, paying around $2.4 billion.
Bank of America
Bank of America has been in the news for all the wrong reasons for years now. This 2013 ruling came after the banking giant acquired public pension funds for companies operating out of Ohio and Texas. This bit of creative accounting ended up costing Bank of America $2.4 billion.
Foreign Exchange Scandal
Bank of America didn’t escape the news cycle or the ire of judges for very long. A 2015 class action suit saw them among a wider group of banks with the likes of Citigroup, JPMorgan Chase, and Morgan Stanley colluding over foreign exchange rates. The result paid out $2.3 billion to those affected.
USDA
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It might be a bit of a stretch to call the United States federal government a brand but bear with me. The US Department of Justice and Department of Agriculture’s part in active racial discrimination for applicants for federal farm loans ended up in one of the biggest class action settlements against the government. The USDA ended up paying $2.3 billion in the aftermath.
Royal Ahold
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Dutch food retailer Royal Ahold came under fire in 2003 for accounting problems. This ended up with one of the biggest class action settlements in history in its wake. The company agreed to pay $1.1 billion after a 2005 ruling from the United States District Court in Baltimore.
Nortel (Again)
That’s right, Nortel is back for Nortel II. The telecom giant got hit twice for the same misdeeds essentially and ended up paying $1.07 billion in the second class action suit. Nortel would also end up being delisted from a few stock exchanges, tanking any prospects for the telecom giant in the future.
Merck & Co, Inc
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Most pharma brands aren’t going to be a household name. It is hard to ignore their impact on the lives and well-being of your average citizen, however. Merck & Co, Inc. would end up being targeted in an anti-trust class action suit over its drug Zestia. The final result had Merck & Co, Inc. paying $1.06 billion for its role.
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