What is Class Action?
A type of lawsuit in which one or more plaintiffs file and pursue a case on behalf of a larger group of people who have similar claims against the same defendant.
Understanding Class Action
Class actions are appropriate when individual claims are too small to justify separate lawsuits but collectively represent significant harm. The court must certify the class by finding that there are enough members, common legal questions, the representatives are typical of the class, and they will adequately protect the class's interests. Class members who do not opt out are bound by the outcome.
Examples
- 1Consumers suing a company for a defective product affecting thousands of buyers
- 2Employees bringing a class action for systematic wage theft by an employer
- 3Data breach victims joining a class action against a company that failed to protect their information
Related Terms
Multidistrict Litigation
A federal procedure that consolidates similar civil lawsuits filed in different federal districts into a single court for coordinated pretrial proceedings such as discovery and motions.
Bellwether Trial
A representative trial selected from a group of similar cases in mass tort or multidistrict litigation that is tried first to help gauge the likely outcomes and settlement values of the remaining cases.
Settlement
An agreement between parties to resolve a legal dispute without going to trial. Settlements typically involve the defendant paying the plaintiff an agreed-upon sum in exchange for dropping the lawsuit.
Product Liability
Legal responsibility of manufacturers, distributors, and sellers for injuries caused by defective products. Claims may be based on design defects, manufacturing defects, or inadequate warnings.
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