The recent rise in royalty class action lawsuits brought by the plaintiffs’ bar, that generally coincides with the ebb in crude oil prices, is a growing risk for oil and gas companies. Class action certifications in royalty lawsuits were less common before the COVID-19 pandemic, but since 2019 there has been an uptick in royalty class actions, specifically those related to (1) when a valuation of the royalties should occur (“at the well” or further downstream) and (2) post-production charges, costs and deductions. Read on for details and analysis of this litigation trend.
