What is a class action lawsuit?

A class action lawsuit is simply the consolidation of many related lawsuits into one. If there are numerous plaintiffs with common legal issues to resolve, then a judge may let them join together as a class. One plaintiff serves as class representative to represent everyone in the class and prosecute the case on their behalf.

Why are class actions useful?

Class actions provide a mass remedy for people whose claims are relatively small and who therefore might not be able to afford access to the courts if they had to file their own lawsuit.

What types of class actions may be filed?

Class action cases typically involve unfair business practices (such as fraud, price-fixing or unfair bank or insurance charges), unfair employment practices (for example, illegal discrimination or failure to pay overtime), and any type of defective or unsafe product. Not all lawsuits can proceed as class actions. A court must "certify" that the case may proceed as a class action.

How does a class action lawsuit work?

Once a plaintiff retains an attorney, the attorney drafts a complaint and files it with the court. The attorney for the plaintiff makes a motion for the court to certify that the case may proceed as a class action and that all parties who have similar claims are members of the class.

If the judge certifies the case as a class action, the judge will order notice to be given to all class members having a similar claim during a particular time period so that they may be informed of the lawsuit and decide whether to decline to be included in the class ("opt out"). If a class member decides to opt out, that class member will not be part of the case, will not be represented by the party who filed the case, and may either file his or her own lawsuit or let the matter drop altogether. Class members who do not opt out remain in the case and are typically bound by the resolution of the case (either a judgment after a trial or a settlement) and are not allowed to initiate their own lawsuit on the matter.

A period of "discovery" follows during which both sides exchange information about the case. This part of the case can last any time from several months to a few years. When "discovery" ends, the matter either proceeds to trial or is settled outside of court. Any settlement must be presented to the court for its approval as to fairness. After trial or settlement, the class members are notified as to how they can collect their share of the damages.