What is a "class action" lawsuit?

A class action is a case brought against a company whose actions have damaged many people in a similar way. If the case results in a successful recovery, either through settlement or trial, all class members receive their portion of the amount paid by the wrongdoers.

Other Class Action FAQs

Q: What types of lawsuits end up as class actions?
A: There are many types: shareholder class actions, consumer class actions, class actions for employment discrimination and the like. Any time large groups of people (or … More
Q: What legal remedies are available for successful class actions?
A: Most class actions are filed for compensatory (money) damages. Class actions may also be filed to resolve disputes over a "limited fund," where the money … More
Q: Can consumers bring class actions relating to products or services?
A: Absolutely. There have been many successful class actions brought by consumers. Signs of consumer fraud include: Misrepresentations regarding a product or a service. … More
Q: How many people are needed to bring a class action?
A: A single person who has been injured may bring a class action on behalf of everyone who has been harmed. It is common, however, after the action has been started for … More
Q: How is a class member informed of his or her rights?
A: If the court allows a case to proceed as a class action, the court authorizes a notice to be sent to class members informing them of their rights. The court will order … More
Q: What are my obligations as a member of a class action?
A: As a member of the class who did not petition the court to become a lead plaintiff (i.e. fill out a certification) you have no obligations. If the action is resolved … More
Q: If I have a claim, should I file my own lawsuit?
A: The answer depends on the nature of the suit and individual circumstances. Some class actions seek recovery for a large group of people; however, individual damages … More
Q: When am I entitled to bring my claim in federal or state court?
A: You are entitled to file your complaint in court unless you signed a written customer agreement that contains an arbitration clause. Because most brokerdealer … More
Q: How do I join a class action?
A: Generally, before a court certifies a class action, it must conclude that there are too many class members for them all to be named as parties in the lawsuit. … More
Q: Do class actions produce substantial recoveries?
A: While the result obtained ultimately depends on the strength of the case, it is a myth that class actions do not produce substantial returns for claimants. For … More