What is a Class Action Lawsuit? An Expert's Guide

A class action lawsuit is a legal device that allows one or more people to file and process a lawsuit on behalf of a larger group. Learn more about what it is and how it works.

What is a Class Action Lawsuit? An Expert's Guide

A class action lawsuit is a legal device that allows one or more people to file and process a lawsuit on behalf of a larger group. It is a way for courts to handle cases that would otherwise be unmanageable if each member of the group had to participate in the lawsuit as an individual plaintiff. In essence, it is when a group of people file a lawsuit against one or more parties accused of the same thing. Class action lawsuits are beneficial because they allow people who have suffered similar damages to join forces and seek justice.

If the damages suffered by an individual are greater than those of other members of the class action lawsuit, they may choose to opt out and file their own case. On the other hand, if there are fewer than 20 plaintiffs, the class action lawsuit may not meet the criteria for certification. When you receive a notice about a class action lawsuit, it will explain why it is being initiated and how you can participate. It is important to note that if you receive a settlement in a class action lawsuit, you may not be able to seek additional compensation. Additionally, some service providers may require customers to waive their rights to participate in class action lawsuits. In order for a class action lawsuit to be certified under the Federal Rules of Civil Procedure, there must be too many plaintiffs to bring them all together at once; they must have issues of law or fact in common; the lawsuits or defenses of the representative parties must be typical of the entire group; and the representative parties must protect the interests of the group fairly and adequately. It is important to understand whether you should start a tort class action or class action lawsuit.

Consulting with a law firm can help you make this decision. If you are part of a class action lawsuit, you will receive a notice informing you that you have been included in the group. Opt-out cases occur when all potential members of the group are automatically included in the class action lawsuit.