Class action lawsuits involve ordinary people challenging powerful corporations and achieving justice, often with notable successes. These biggest class action lawsuit settlements resulted in substantial payouts, compelling these corporations to take responsibility for their actions. The top class action settlements show the incredible impact of class members uniting for justice.

At Sparrow, we help simplify every step of joining a top class action lawsuit—whether you’re dealing with personal data breach, accounting fraud, or financial crisis disclosures. Our platform makes it easy to understand your rights, file claims, and receive updates, so you don’t have to navigate the process alone.

Leveraging our experience, we’ll dive into the details behind the biggest lawsuit ever and nine other shocking cases that changed the game for consumers everywhere.

Ready to see how it all unfolded? Let’s dive in!

Top 10 Biggest Class Action Lawsuit in History

The biggest class action lawsuits reveal just how powerful a group of determined people can be. These record-breaking cases forced industry giants to pay up, bringing justice to those impacted and setting new standards for accountability in finance, health, and consumer rights.

Tobacco Settlement ($206 Billion)

Few strong cases have rocked an industry like the Tobacco Master Settlement Agreement, which remains as the biggest class action lawsuit in history. When Philip Morris, RJ Reynolds, and other tobacco companies faced claims of misleading the public about the dangers of smoking, they agreed to pay $206 billion.

Tobacco companies have been marketing their products to impressionable young people for decades while greatly downplaying the detrimental health consequences of smoking, even as growing scientific evidence showed strong links between tobacco use and fatal health problems.

Funds from this settlement were not distributed directly to smokers. Instead, 46 US states used the money to cover the ongoing healthcare costs associated with smoking-related diseases, aiming to reduce the burden on public health systems.

This case also led to new restrictions on tobacco advertising. Companies could no longer advertise cigarettes on billboards, TV, or in venues frequented by young people. The agreement also helped launch the “truth” campaign, which became an iconic part of the anti-smoking movement in the U.S.

BP Gulf of Mexico Oil Spill ($20 Billion)

The Deepwater Horizon oil spill of 2010 was one of the worst environmental disasters in history and rivaled the earlier mentioned biggest class action lawsuit in history in terms of magnitude. BP’s offshore drilling rig explosion spilling millions of barrels of oil into the Gulf of Mexico resulted in one of the worst environmental disasters in class action history. 

The oil damaged ecosystems, killed wildlife, and disrupted local economies that relied on fishing and tourism. BP’s $20 billion settlement addressed the catastrophic environmental and economic toll, making it one of the biggest class action lawsuit settlements regarding the environment.

In 2016, a judge of the New Orleans federal court granted final approval to an estimated $20 billion settlement resolving civil claims over environmental damage. Members of the class such as fishermen, business owners, and coastal residents all received financial relief to help cover lost income and property damage. 

Beyond these immediate payouts, BP’s funds were used for long-term environmental efforts, which included ongoing water quality monitoring and habitat restoration initiatives across the Gulf Coast.

The oil spill also triggered a shift in regulatory oversight for offshore drilling, leading to stricter safety protocols and operational standards in the oil industry. Companies now faced tougher regulations, including mandatory blowout preventers, improved emergency protocols, and regular safety inspections.

Volkswagen Emission Scheme ($14.7 Billion)

In 2015, the Volkswagen emissions scandal—or “Dieselgate”—revealed that the company had installed software in its diesel vehicles to cheat on emissions tests. This software allowed VW’s diesel cars to pass regulatory tests while emitting pollutants well above legal limits during normal driving conditions. Volkswagen’s actions led to one of the largest significant settlements in automotive history, totaling $14.7 billion.

The settlement included vehicle buybacks for nearly half a million affected vehicles, offering the diesel car owners full market value to cover the economic impact of the scandal. Volkswagen also provided cash payments to owners and directed billions of dollars toward environmental initiatives designed to offset the excess pollution caused by the vehicles. 

“Dieselgate” prompted sweeping regulatory changes in emission tests, both in the U.S. and internationally. Governments and regulatory bodies began scrutinizing a number of claims regarding emissions more closely, and the case increased awareness of the accuracy of “eco-friendly” marketing. 

Enron Securities Fraud ($7.2 Billion)

The collapse of Enron in 2001 became one of the most infamous corporate scandals in United States history. Once a leading energy company, Enron filed for bankruptcy after it was discovered that executives had engaged in fraudulent accounting practices, hiding billions in debt to inflate the company’s stock value.

The $7.2 billion Steinhoff settlement was obtained through a summary judgment participated in by the Enron investors’ lead counsel. It sought to compensate investors who lost significant savings due to Enron’s collapse, which affected over 1.5 million shareholders, employees, and pension funds—making it the biggest class action lawsuit at the time. 

Although many investors received only a fraction of their initial investments, the settlement provided crucial relief to those impacted. In response, Congress enacted the Sarbanes-Oxley Act, a landmark piece of legislation that introduced strict corporate governance and financial reporting standards.

WorldCom Accounting Scandal ($6.1 Billion)

The WorldCom scandal came to light in 2002 when the telecommunications giant was exposed for inflating its earnings by billions of dollars. The company’s stock price plummeted, and WorldCom eventually filed for bankruptcy, leaving investors with substantial losses. In 2005, a federal judge in New York concluded settlements totaling approximately $6.1 billion against WorldCom.

The resulting $6.1 billion settlement provided relief to thousands of shareholders, including institutional investors, pension funds, and individuals who had relied on WorldCom stock as part of their retirement and investment portfolios.

This securities class action suit underscored the devastating impact of corporate fraud on individual investors and the financial market as a whole. Many investors lost a considerable portion of their retirement savings, and the fallout led to increased scrutiny of financial practices in the telecom and broader corporate sectors.

Fen-Phen Diet Pills ($3.8 Billion)

Once marketed as a healthy rapid weight-loss solution the Fen-Phen diet drug combination caused the opposite of what it advertised when it was linked to severe heart problems and pulmonary issues. The manufacturer of the drug faced a $3.8 billion settlement in 2000 when health risks became more widely known by the general consumers.

The settlement compensated millions of users for medical expenses, lost income, and other damages caused by the drug’s health risks. The compensation provided essential financial relief for patients dealing with lifelong health complications, many of whom were unaware of the dangers when they began using the defective products.

The Fen-Phen case led to increased regulation and transparency within the pharmaceutical industry, pushing for stricter safety testing, clearer labeling, and accountability from drug manufacturers.

American Indian Trust ($3.4 Billion)

This case on heritage is considered as one of the biggest class action lawsuit settlements in recent history. Native Americans who were frustrated by the U.S. government’s mishandling of American Indian trust properties filed a submission to make the US government accountable. Supposedly intended for Indigenous community aid, the income generated from these resources were wasted due to the federal government’s inadequate oversight. This mishap led to significant financial losses for the Native American tribes.

The $3.4 billion settlement in 2011 became a historic victory, compensating Native American communities for these long-standing injustices. The funds from this settlement were directed toward economic, educational, and healthcare projects for Native American communities. 

It addresses not only immediate financial damages but also fostering long-term economic growth. This payout helped bridge the gap in revenue that tribes had been denied for generations.

Silicone Breast Implants ($3.4 Billion)

The Silicone Breast Implants lawsuit of the 1990s resulted in a $3.4 billion settlement. The lawsuit primarily involved Dow Corning, the largest defendant among several manufacturers. Thousands of women reported severe health issues such as chronic pain and autoimmune disorders which were allegedly caused by leaking or ruptured implants. 

While research produced mixed conclusions on whether implants directly caused these health issues, the volume of claims and serious nature of the complications led to a settlement covering medical costs, lost income, and other damages.

The settlement provided relief to thousands of affected women and spurred changes in medical device regulation. In 1992, the FDA issued a temporary moratorium on silicone breast implants, later allowing them back on the market under stricter testing and labeling standards.

Cendant Accounting Fraud ($3.2 Billion)

Cendant Corporation, a real estate and travel services company, was exposed for engaging in large-scale accounting fraud. The case stems from the allegation that the company had inflated its asset values to mislead investors, leading to a $3.2 billion settlement. This class action case was a significant moment for corporate accountability in the real estate and hospitality sectors, emphasizing that financial honesty is paramount.

A share of the settlement was used to help shareholders who had been deceived by Cendant’s false financial statements, restoring some of the losses suffered by investors. This case highlighted the importance of accurate financial disclosures and reinforced the necessity of transparency in business practices.

Tyco Accounting Scandal ($3.2 Billion)

The Tyco International scandal involved top executives using millions of dollars in company funds for personal luxuries, enriching themselves at shareholders’ expense. This misuse of funds led to a $3.2 billion settlement in 2007, providing relief to shareholders who had suffered from the executives’ misconduct.

This settlement underscored the critical need for oversight and accountability in corporate leadership. Tyco’s misuse of corporate funds not only led to financial losses but also damaged shareholder trust. The settlement provided some compensation to the affected members of the class, restoring partial confidence in the financial system.

The Tyco case contributed to significant changes in corporate governance and underscored the importance of transparent executive conduct.

Key Takeaway

The biggest class action lawsuits show how ordinary people can challenge corporate giants and win. These cases have resulted in billions in settlements, holding major companies accountable and demonstrating the power of collective action to achieve justice.

For each lawsuit, there are unique eligibility requirements and parameters, often requiring detailed documentation or evidence to demonstrate harm. Before joining any class action, consider factors like who the potential lead plaintiff is, claim deadlines, potential payout adjustments, and the implications of settlement terms on individual compensation.

Want to make sure you don’t miss out on compensation for a class action litigation you qualify for? Sparrow’s here to guide you through the process, from understanding eligibility to filing for your legitimate claim rate. Check out the Sparrow blog and keep an eye on the future biggest class action lawsuit, and let our team help you navigate through numerous lawsuits to maximize your compensation.