Class action lawsuits can be powerful tools when enough people have suffered similar injuries or losses. But these legal disputes aren’t easy to win.
What is a Class Action?
Class action lawsuits are designed for situations where the same defendant harms multiple people. Individuals in the group (known as “class members”) are represented by one or more named plaintiffs, who are known as “lead plaintiffs.” Class actions typically involve monetary compensation. But they may also seek injunctive relief, which orders an entity to stop practices that harm many people. To be part of class action investigations, class members must receive notice that they are eligible to join and that the lawsuit is being brought on their behalf. It can be accomplished through mailed letters, published newspaper or magazine articles (for example, in a technology magazine when the claim involves computer defects), posted at stores where the product was sold, or on websites that class members are likely to visit.
Unlike personal injury cases, where it is common for lawyers to advise potential clients that their expected damages are too small to make a lawsuit worthwhile, class actions allow individuals to combine to take on well-resourced corporate defendants. By doing so, class action lawyers level the playing field. Federal courts are often the appropriate venue for class actions involving securities fraud and other financial misconduct. However, it is essential to discuss your case with an experienced attorney to determine whether or not a class action is appropriate in your situation.
What Can a Class Action Do for Me?
Depending on the issue, a class action can result in a financial payout compensating impacted individuals. Additionally, a successful class action lawsuit can change laws and regulations meant to protect consumers in the future. Class actions have played a role in desegregating schools, decreasing pay inequality, and regulating dangerous products, materials, or chemicals. People interested in joining a class action should speak to a lawyer about whether or not their complaint meets the requirements for a legal challenge. A lawyer can help them determine if their case is too small for a class action or whether or not the defendant has enough money to fight the claim.
If the lawyer believes the case is viable, they will work to identify potential class members and enroll them in the suit. Lawyers can reach a wider audience than traditional marketing techniques because it is usually done through online advertisements. Ultimately, the success of a class action depends on the strength of the evidence presented by the lead plaintiffs. It can also depend on the willingness of the defendant to settle and how much publicity the case gets. For example, some companies may want to settle a class action quickly, while others will be more willing to fight the claim for years.
How Do Class Actions Work?
Class actions allow many who have suffered similar injuries or losses to band together and sue companies in one lawsuit rather than each person pursuing their claim individually. In addition to providing strength in numbers for harmed individuals, a successful class action can benefit the entire community. These include better product safety, racial integration, fairer securities trading, and cleaner environments. While every class action is different, the process generally begins with attorneys asking for documents and conducting depositions of individuals who know the facts and circumstances surrounding a specific case. Lawyers work to gather and analyze the information to prove each claim made in the lawsuit.
In the United States, the law allows class action plaintiffs to choose a representative (also known as lead) plaintiff. This person will act as a spokesperson for the other class members and take on most of the litigation costs and risks in exchange for compensation. The class action lawsuit may result in a settlement or verdict binding on all defendants and the entire class. Defendants will often change their procedures, policies, and products to avoid future litigation or ensure they have the resources and ability to comply with class action verdicts and settlements.
How Can I Benefit from a Class Action?
While class actions receive much negative scrutiny, they offer the only realistic opportunity for ordinary people to take on powerful companies and secure individual results that would be impossible or impractical. Class action lawsuits allow you to pursue justice without spending a fortune. It could cost thousands of dollars to litigate one case against a company whose products are defective and putting people at risk. Therefore, they are often more practical for plaintiffs than pursuing individual lawsuits, as the parties only need to focus on one set of witnesses and documents. It’s also less time-consuming for the courts and defendants, who must respond to one suit instead of several.
The length of a class action lawsuit varies, with some cases settled in as little as six months and others taking years to resolve. It’s essential to consult an attorney before signing up for a class action lawsuit to understand how long the process will likely be. It’s common for defendants to file an early motion to dismiss a class action lawsuit. Still, if an attorney takes the time to gather as many facts about a particular case as possible and compellingly present them, that’s unlikely to happen.
