There are lawyers that actively search for businesses misbehavior in order to bring forward class action suits. In this scenario, the bigger the misbehavior (fi

There are lawyers that actively search for businesses misbehavior in order to bring forward class action suits. In this scenario, the bigger the misbehavior (financially) the greater the incentive, independent of the magnitude of harm on the individual scale, i.e. you’re not dependent on someone being harmed enough to want to report to authorities. That strikes me as a market behavior that’s fairly well-aligned with the optimal behavior. As to the question of criminal prosecution or harsher penalties (e.g. dissolving the corporation): to my knowledge, these suits actually draw AG attention to areas of civil misbehavior which often borders criminal misbehavior. They even surface which citizens were harmed and bring forth information gained by discovery, etc. Thus class action lawsuits actually make it easier for the government to act — that they should prosecute but do not is an independent problem.