Class actions continue to shape the U.S. legal landscape in 2025, especially in California — a state often leading the nation in consumer protection, data privacy, and employment law.
From AI copyright disputes to massive financial settlements, class actions have become more than just courtroom battles — they’re a reflection of how technology, business, and law collide.
Here’s what Californians should know about this year’s biggest class action trends, cases, and what might be coming next.
⚖️ What’s New in 2025: From AI to Antitrust
📚 Authors Sue Salesforce Over AI Training
In October 2025, authors Molly Tanzer and Jennifer Gilmore filed a class action lawsuit against Salesforce, accusing the company of using their books without permission to train its AI model, xGen.
The case raises a growing question: when does AI innovation cross the line into copyright infringement?
If this lawsuit succeeds, it could open the floodgates for more AI-related class actions, especially from creators who feel their content has been used without consent.
💳 Visa and Mastercard Settle $199.5 Million Case
A major class action settlement was reached between Visa, Mastercard, and U.S. merchants this October. Businesses claimed that both companies unfairly changed their chargeback rules — pushing fraud risks onto small retailers.
Under the agreement, Visa will pay about $119.7 million and Mastercard $79.8 million, without admitting wrongdoing. For small businesses in California, this case is a reminder that even the biggest players can be held accountable through collective legal action.
🤖 Microsoft Faces AI Antitrust Lawsuit
A group of consumers in San Francisco filed a class action against Microsoft, alleging the company’s partnership with OpenAI violated U.S. antitrust laws. Plaintiffs claim Microsoft used its market power to dominate AI products and inflate ChatGPT subscription prices.
The case could reshape how tech companies collaborate on AI development — and whether those deals restrict fair competition in California’s booming AI sector.
🔥 Other High-Profile Class Actions
- Clearview AI: Approved a nationwide settlement for allegedly scraping billions of facial images without consent — offering stock or revenue-based compensation to affected users.
- Marriott Data Breach: A federal appeals court struck down a class action, ruling that Marriott’s arbitration clause was enforceable, preventing group litigation.
- Securities “AI Washing”: Investors are filing new class actions against companies accused of exaggerating their use of AI to boost stock prices.
📊 Key Trends for California Class Actions in 2025
1️⃣ Rise in Data Privacy and AI Claims
California’s Consumer Privacy Act (CCPA) and the California Privacy Rights Act (CPRA) continue to empower residents to take action against companies that misuse data. Expect more privacy-related class action lawsuits, particularly around AI training data and biometric tracking.
2️⃣ Growth in Consumer Protection Cases
Law firms report an increase in claims related to:
- Auto-renewal subscriptions
- Misleading “Made in USA” labels
- Hidden service fees and false advertising
- TCPA violations (illegal robocalls or texts)
3️⃣ Employment Class Actions Stay Strong
California remains the epicenter for employment class actions — from unpaid wages and misclassification to workplace discrimination. The state’s worker-friendly laws make it easier for employees to band together and file collective claims.
4️⃣ New Barriers for Attorneys
A new California law limits how contingency fees can be shared between law firms and outside investors. Legal experts say this could impact funding models for large class actions, especially those involving out-of-state firms.
💡 What It Means for Californians
For Consumers and Employees
- Stay informed: Visit civilrights.justice.gov or fbi.gov/investigate/civil-rights to learn about your legal rights.
- Watch for settlements: If you’ve used a product, app, or service under investigation, you may qualify for compensation — even if you never hired a lawyer.
- Act quickly: Many class action claims have short deadlines to join or submit payment requests.
For Businesses
- Review compliance: Make sure your contracts, privacy policies, and renewal terms meet California’s strict regulations.
- Train your team: Educate employees about marketing, labeling, and data-use rules.
- Audit your AI and data systems: Transparency in how you collect and process user data can reduce litigation risk.
Class actions in 2025 reflect a shift: from traditional product defect lawsuits to complex disputes involving data, AI, and consumer rights.
In California, where digital innovation and consumer advocacy coexist, class actions will continue to play a vital role in shaping corporate accountability.
Whether you’re a small business owner, a consumer, or a tech creator, understanding the power — and risk — of a class action lawsuit has never been more important.
