Class Action FAQ
What is a Class Action lawsuit?
A class action is a type of lawsuit in which one or several persons sue on behalf of a larger group of persons. Many class action lawsuits are often started as the result of complaints by one or a handful of persons.
While the subject matter of class action lawsuits can vary widely, two factors are almost always present for every class action: (1) the issues in dispute (factual and/or legal) are common to all members of the class, and (2) the persons affected are so numerous as to make it impracticable to bring them all before the court. Examples of class action cases include:
- Individuals who have had personal and private information improperly disclosed by businesses, including credit reporting companies;
- Employees of a business who have not been paid all the wages and/or benefits owed to them under state or federal law;
- Employees of a business who have been victims of a pattern or practice of discrimination (racial, age or gender discrimination);
- Those exposed to a toxic spill;
- Those who bought a defective product;
- Those who have been victimized by unfair or fraudulent business practices.
A class action suit is filed when different people combine their lawsuits because the facts of the case are so similar. This is designed to save court time, and allow one judge to hear all the cases at the same time and make one decision binding to all parties.
If the court agrees to certify the case as a class action, that means the court agrees the case meets the criteria for class certification. A decision to certify the class action allows the case to move forward to trial in order to efficiently resolve the common issues shared by the class members.
How does a Class Action suit work?
The following describes the typical procedures followed in class action litigation. The sequence of events described may vary from case; however, generally, a class action will involve all of the steps noted.
Step 1: The first step is the drafting and filing of a complaint against the defendants. This document is then filed in court and delivered or "served" on the defendants by the U.S. mail or a process server.
Step 2: After the complaint is filed, the defendants will usually file an answer denying the allegations. Alternatively, they may elect to challenge the complaint by filing certain motions challenging the lawsuit. If motions are filed, an answer will be required after the judge rules on the motions unless the case is dismissed.
Step 3: After the answers are filed and any motions ruled on, a period of "discovery" will usually take place. Discovery involves the lawyers demanding documents from the other side, asking written questions, and taking depositions. Often courts will hold a conference with the lawyers and set a timetable for preliminary discovery needed for certification to be completed.
Step 4: After all preliminary discovery is completed, the plaintiff will file motion to certify a class action. The defendants will file objections to certification. The Court will have a hearing. If plaintiffs win, the case proceeds to be certified.
Step 5: Notice. If the lawsuit is one for money, the court will order notice go to the class. Notice is published in the newspaper or sent through the mail. This notice advises class members of their rights, and sets deadlines for objecting, "opting out," or entering an appearance through a lawyer.
Step 6: Trial or Settlement. After final certification is granted, additional discovery may be needed before the case is tried. After that discovery is completed, the case is set for trial unless it settles. The trial of a class action procedurally is the same as for any other civil lawsuit.
What are your rights and responsibilities in a Class Action?
Notification of a class action: Notice is given by the prosecuting attorney to all eligible parties. This is done by mail or publication. If you do not receive notice and the deadline for participation in the class passes, you have no recourse in this particular suit, meaning you have no right to damages won in the original case. A good example: you have moved and have not yet notified the post office of your forwarding address. The court only requires "best notice under practical circumstances" be given.
Filing your own class action suit or an individual suit: Unless your personal damages are very large ($100,000+), you will most likely need other parties to induce an attorney to take the case on a contingency basis.
It is possible to bring a competing class or an independent court action against a company. The relative merits of each course should be discussed with counsel and will depend on monetary amounts, number of parties involved, etc. The general rule is, the larger the class (the more parties involved), the easier it is to get competent counsel involved on a contingency basis; and the greater your chance of recovering damages.
There are no out-of-pocket expenses to any class members, regardless of the outcome. We pay all expenses and costs associated with the lawsuit. Additionally, we provide our services on a contingency fee basis. This means that we are not paid unless we are successful in obtaining a recovery on behalf of the class members. If we are successful, we will petition the court for an award of attorneys' fees and reimbursement of expenses from the recovery. How much we receive is up to the court.
