The Advantages and Disadvantages of Class Action Lawsuits
- Lack of decision making control. Class action lawsuits are, by definition, representative rather than group litigation. That means that representatives of the affected class make the important litigation decisions – including when to settle. A plaintiff who is not a representative does not have a say in whether to settle or continue to litigation.
- Cases almost always settle for financial compensation, coupons for future services or rebates only. If a plaintiff is seeking other types of compensation than this can be problematic.
- If the plaintiff’s attorney does not argue effectively or the class representatives do not have strong claims then the legitimate claims of other class members can be hurt. If the class is unsuccessful in their lawsuit then individual class members likely do not have the right to bring individual lawsuits at a later date.
The information on this page is meant to provide a general overview of the law. The laws in your state and/or city may deviate significantly from those described here. If you have specific questions related to your situation you should speak with a local attorney.
Additional Class Action Lawsuit Articles
- Holding Corporations Accountable: LawInfo's Top 10 Class Action Lawsuits
- Common Types of Class Action Lawsuits
- The Phases of a Class Action Lawsuit
- How Class Action Lawsuits Can Change the Law
- The Class Action Fairness Act of 2005
- The Doctrines Underlying Class Action Lawsuits
- What Is A Class Action?
- How Are Individuals Benefited By Class Actions?
- What types of lawsuits end up as class actions?
- What Types Of Claims Are Brought In Securities Class Actions?
- What legal remedies are available for successful class actions?
- Who Brings Class Actions?
- Do I Have To Own Stock In The Company To Benefit From A Class Action?
- How many people are needed to bring a class action?
- How is a class member informed of his or her rights?
- How do I join a class action?
- What are my obligations as a member of a class action?
- If I have a claim, should I file my own lawsuit?
- When am I entitled to bring my claim in federal or state court?
- Do class actions produce substantial recoveries?
- Can I be bound by a settlement or judgment of a class action?
- How are attorney`s fees paid in a class action?
- I may have been defrauded. How long can I wait to file suit?
- Are unfair deals with insiders or related companies considered fraud?