I've been involved in a class action suits against companies that sold shares to the public under false pretenses. The money I lost wasn't that significant, but little did I know that these class action suits gets you back a pittance if any at all. The lawyers get almost everything. I lost $7000 in stocks of this one company and the class action netted me only $30.
Idk, I think people make a business out of creating bad investments and then using lawsuits to milk the bad investments in yet a new way. I felt this way with the loan forgiveness for schools that go out of business. I can just picture people trying to get their schools condemned in order to get their loans forgiven.
As much as I hate to see people waste their money on bad investments, I think there has to be some deterrent to investing money in the first place. If everyone's money is always protected in whatever they invest in, where is the discipline to prevent the economy from overheating? Investment just becomes a way of circulating money.
Imo, the purpose of class action or other lawsuits is to establish case law where legislation would be too cumbersome to deal with legal details. Of course it is also a problem when case law becomes so complex that it does little good to study the actual statues because so much has been done in the courts to modify them.