Class Action Lawsuit

A class action lawsuit can be defined as a lawsuit that involves a large group of people who were injured in the same accident or by the same device. This way, instead of each individual involved having to file a lawsuit, they can be grouped together into a class action suit. Other names for this kind of lawsuit are mass tort litigation and multidistrict litigation.

Although there are a vast number of reasons for class action lawsuits being filed, there are generally two similarities between them all. The first similarity is that every person who is involved has the same or similar issue because of the situation, and the second similarity is that there are so many people involved that it would be ludicrous to bring each individual into their own separate lawsuit.

Purpose of Class Action Lawsuits

Class action lawsuits are used to group together all of the injured parties so that it is more efficient for the courts to deal with. One plaintiff will take the lead role, and all others will be able to take a backseat while the verdict is determined. Another reason these can be useful is that many times the defendant is a large corporation that is able to efficiently fight off a single lawsuit. However, if the problem with their good or service is widespread, then grouping all of these people together not only creates strength in numbers but proves that there is an issue with what was provided by the defendant. This is important, as the number of plaintiffs can grow throughout the process. It can be tough for every person injured to be informed from the start so those who find out about the class action suit late can apply to have opted in if their case meets the requirements. This way the court is able to get a better idea of just how many people are negatively affected.

Examples of Class Action Lawsuits

There are many different situations in which a class action lawsuit would be acceptable. Some examples could be, but are not limited to:

Illegal or insensitive recording of conversation or action
Employees being discriminated against by race, sexual orientation, gender, and more
Investors losing money because of fraud committed by a publicly traded company
Environmental disasters affecting small owners such as an oil spill
Fixed price scandals
Defective product cases in large numbers
Prescription drug injury cases in large numbers

Class Action Verdicts

Although grouping cases together can be beneficial for both parties, it can also be detrimental. This is because every person that is included in the lawsuit is bound by the final decision of the court, regardless of the specific situation and any small differences between each individual case. Another negative aspect is that the final settlement is split between each individual party in the case, and a system is used to determine the percentage of the settlement that each person will receive based on their individual case. This could potentially mean that the person will receive less out of the settlement than if they were to file their lawsuit individually. However, each class action lawsuit will be different in their own way and this is by no means guaranteed.

Class action lawsuits are complicated and can take a long time to reach a verdict, however, they can be largely beneficial to the courts and the plaintiffs involved. Many people do not understand the intricacies of class action lawsuits, and may not even know if they qualify to opt into one that is already ongoing. If you believe that you have a case that may qualify as a class action lawsuit, contacting our team at The Eichholz Law Firm would be a good next step. We understand all parts of a class action lawsuit and can advise you on what to do next. Contact us today or fill out our online application for a case evaluation.

Class Action Lawsuit