A class action lawsuit is a type of civil lawsuit in which the claims
and rights of many people are combined and decided in a single case.
Typically, specific plaintiffs are named in the class action lawsuit to
represent the claims of other class members so that everyone with the
same complaint or injury does not have to file individual lawsuits. In a
class-action suit, all these complaints are consolidated into one case.
Why file a class action lawsuit? There are usually several benefits
to filing a class action lawsuit as opposed to an individual civil
complaint or claim. First, individuals who have been injured or wronged
have the ability to file a claim that may be too small to file
individually. Secondly, when there are more class members involved,
there is more leverage. And in these types of cases, no legal fees are
incurred or owed until the case has been successfully resolved.
Types of Class Action Lawsuits
Consumer Class Actions: These types of actions are
generally brought when a group of consumers complains about being harmed
by a corporation's systematic and illegal practices. For example, when a
credit card company slaps illegal penalties or illicit charges or fails
to comply with consumer protection laws, a group of consumers who have
been harmed by these types of wrongful practices can band together to
file a class action lawsuit. One individual may not have the power, the
will or the finances to fight against a large corporation. But, a larger
group of individuals can put up such a fight often successfully.
Product Liability Class Actions: These types of
actions can be brought about when a defective product such as a car or a
drug causes harmful side effects. For example, Toyota Motor Corp. paid
out $1 billion to settle a class action lawsuit brought by car owners
whose vehicles diminished in value significantly because of mass recalls
spurred by sudden acceleration issues. The Japanese automaker recalled
more than 10 million vehicles over three years to fix problems involving
stuck accelerator pedals and faulty floor mats.
Employment Class Actions:Employment class action lawsuits are typically filed on behalf of many employees of a company for claims ranging from class action lawsuits against workplace discrimination
or sexual harassment to unpaid wages or overtime pay. Our law firm
recently secured a $650,000 settlement in a class action lawsuit on
behalf of two plaintiffs. This case involved more than 100 class members
who claimed that their employer failed to pay overtime wages and to
provide mandated meal and rest periods.
Filing a Class Action Lawsuit
Here is a list of some of the elements and actions that must be taken as part of the process of filing a class action lawsuit.
- The Complaint: In order to file a class action lawsuit, the same type of harm must have been done to a group of people. The size of the complaint will not affect whether or not you have a class action lawsuit. What's important is that a group of people suffered some type of loss.
- Significant number of victims: There must be so many claimants that it is not reasonable for each to file an individual claim.
- Class action attorney: Make sure you speak with a knowledgeable attorney who has recent experience handling cases similar to yours.
- Representative: One or more persons must be named to represent all of the claimants in the lawsuit.
- Demands: You will have to decide what type of compensation you want. In most cases, a class action lawsuit will result in financial compensation.
Damages Covered in Class Action Lawsuits
The compensation sought by consumers through class action litigation
varies with each lawsuit. The potential value of your class action suit
will depend on the severity of the losses suffered by the victims. Types
of losses that will be considered in a class action lawsuit include
damages for personal injury, litigation costs and compensation for
economic losses. The compensatory damages from a class action lawsuit
will often be distributed among the class members based on the damages
each member suffered. In some cases, punitive damages may also be
awarded.
The Important Role of Class Action Lawsuits David v. Goliath
Class action lawsuits are necessary and beneficial to the public
good. Often, states, with their budget woes and depletion of resources,
do not have the ability to police illegal activities perpetrated by
large corporations. However, class action lawsuits empower ordinary
citizens who have been wronged to enforce the law and seek justice.
Another important goal of these lawsuits is to encourage corporations to
comply with the law.
Class action has been the "whipping boy" of business for a long time.
That is because corporations detest the idea that consumers have the
collective power to hold them accountable through class action lawsuits.
Also, without class action lawsuits, consumers do not have a realistic
way to fight back against large corporations. Class action lawsuits are
powerful tools for consumers because the economics of these cases make
sense only if a large group of people joined together to bring these
claims.
Bisnar Chase Class Action Attorneys
The experienced California class action lawyers at Bisnar Chase will
be able to help individuals determine if they are eligible for either
joining an existing class action lawsuit or filing a new class action
lawsuit. If you have questions about class action lawsuits or personal injury claims,
please contact us at 1-800-561-4887. We can help you evaluate your
options and help you seek compensation for your significant losses.