We are pleased to present our second quarter 2024 update to the New England and First Circuit Class Action Tracker, which focuses on class action filings in state and federal courts within the boundaries of the First Circuit in New England.
Record High Filings Focused in Federal District Courts
In the first half of 2024, plaintiffs filed 220 class actions in state and federal courts throughout the First Circuit. The second quarter experienced 136 new class action filings, making it the busiest quarter in recent history. If that pace continues, plaintiffs in the First Circuit may end up filing more class actions in 2024 than in 2019’s record high 419 filings.
Massachusetts saw the vast majority of filings, but federal district courts in Maine and Rhode Island both sustained increased filing activity in the second quarter. On the other hand, New Hampshire’s 2024 filings have predominantly been in state court. In total, the first half of 2024 was consistent with prior years, in which more class actions were filed in federal court than state court.
Growing Wave of Data Breach and Privacy Claims Continues in 2024
In the first half of 2024, 49% of cases filed in federal courts in the First Circuit were data security and privacy class actions. In our Q2 2023 Update, we noted a class action boom driven by these types of cases, and we predicted historic filing levels if the trend continued. We can see that this trend has continued, and the First Circuit is on pace to see historic filing levels overall.
About 75% of the data security and privacy class action filings have been cases arising from alleged data breach incidents. These are cases in which plaintiffs allege that a defendant negligently failed to protect personally identifiable information (PII), allowing that information to be stolen during a data breach.
In 2023, plaintiffs filed data breach class actions primarily against health care and technology industry defendants. In 2024, that trend has shifted. Plaintiffs are now expanding their focus from those industry defendants to also target financial, legal, and educational institution defendants.
In addition to data breach cases, federal courts in the First Circuit saw cases filed relating to the Telephone Consumer Protection Act (TCPA) and the Video Privacy Protection Act (VPPA). These class action claims were based on alleged unsolicited marketing messages and the disclosure to third parties of consumers’ online video watch histories.
2024 Likely to Continue as Record Year for Class Action Filings
The class action boom in the First Circuit is on a pace to be the busiest year of filing in recent history. The trend of focusing class actions against health care and technology industry defendants has evolved with the addition of financial, legal, and educational institution defendants. We will continue to monitor these developments throughout 2024.
Thank you to firm summer associate Drew Mondi for his contribution to this alert.