A class action lawsuit is a lawsuit in which a person or business acting as the plaintiff in a lawsuit represents a larger group of people that have similar legal claims against a particular defendant or group of defendants. The person or business entity that brings the lawsuit on behalf of the others is referred to as the "class representative."

What types of class actions may be filed?

Most class actions are filed to recover money. Class actions are also filed to resolve disputes over a "limited fund," where the money available is inadequate to fully compensate all class members. “Declaratory judgment" class actions ask for a decision from a court as to the rights and obligations of the parties. Sometimes class representatives may be asking the court to order a person to do something or stop doing something. That’s called an "injunctive relief class action." For example, a class action may be filed to request that the court order the police or authorities to stop doing something unconstitutional or to enforce environmental rights.

What is the point of a class action lawsuit?

Class actions enable a large group of people injured by similar misconduct or the same defective product to have their claims joined together in a single lawsuit. This is critical in situations involving hundreds or thousands of class members, where individual damages may be small compared to the cost of a lawsuit so that no one individual would bring a claim because it does not make economic sense for them to do so. In this regard, a class action provides a way for persons and businesses with relatively small claims that would not, by themselves, justify hiring an attorney, to pool their claims against an alleged wrongdoer.

Who can become a class member in a class action lawsuit?

Any person or entity that meets the definition approved by the court is automatically a member of the class in the lawsuit. However, in order to be eligible to receive any benefit, relief or monetary recovery that a court may eventually order as a result of the lawsuit, class members must not opt out and they must submit a claim to the law firm that is representing the class or to a claims administrator approved by the court.

How many people are needed for a class action?

Although it sometimes helps if several people are named as plaintiffs in the suit, a single person is generally enough to file a lawsuit so long as the attorney for the class has a good faith belief that a number of other people were injured in a similar way.

What are the obligations of class members in a class action lawsuit?

Class members are under no legal obligations other than to be truthful in the submission of their claim forms. They are not responsible for paying any fees or costs associated with the lawsuit.

How long does a class action lawsuit usually take to settle?

Since class actions are usually brought against large corporations and involve complex legal issues, they can take years to settle. Fortunately, class members have very few responsibilities while a claim is ongoing, and they are free to move on with their lives.

Who pays for the lawyers?

In most class action lawsuits, class members are represented by attorneys who are paid on a contingency fee basis. This means that the attorneys representing the class do not receive compensation unless the lawsuit results in some significant benefit to the class.