In a class action claim, a plaintiff files a lawsuit on behalf of a “class” of claimants with related legal grievances. The class consists of unnamed plaintiffs that can range in size from a few hundred individuals to several thousands. Once a judge “certifies” the class, unnamed plaintiffs are notified of the potential class action and are permitted to “opt-out” of the class if they so choose. Those parties who have opted-out may pursue individual lawsuits. They are not bound by the resolution of the class action claim and are not eligible to receive any award resulting therefrom.
The process of certifying the class requires the named plaintiffs to meet specified criteria. They must demonstrate that: a claim exists against the defendant; the named plaintiffs are representative of the other members of the class; a large enough class shares the stated grievances; and the collective claims present comparable issues of fact and law. The members of the class do not make decisions relating to the litigation, including whether or not to accept a settlement offer. The named plaintiffs decided whether to consent to a settlement and direct the course of the litigation in conjunction with the plaintiff’s attorneys.
Class action lawsuits are the preferred method of litigation in certain contexts. They allow individuals who may not have adequate resources to pursue claims against larger, more powerful entities. Similarly, an individual within a group may have only small or limited claim against the defendant and it would not be feasible to initiate an independent lawsuit. However, the consolidation of similar claims could result in a sizeable award for plaintiffs and prevent conflicting outcomes. The class action lawsuit enables individual plaintiffs to attain equal footing with resourceful corporate entities.
Only a civil claim can be brought as a class action and it may be litigated in either state or federal court. The Federal Rules of Civil Procedure, Rule 23, governs the requirements of federal-based class actions. Class action lawsuits may be brought in connection with a variety of claims including: (i) defective products or false advertising, (ii) discrimination against a group of employees, (iii) failure by prescription drug companies to disclose pertinent information, and (iv) securities fraud against investors.
Contact Shane Coons at 949-333-0900 or visit his website at www.ShaneCoonsLaw.com to find out more about his practice.