What Is A Class Action Lawsuit?

You hear about them routinely on the news. You may have even recently been invited to join a class action lawsuit after purchasing a product or service. This may leave you wondering some pretty important questions like: What is a class action lawsuit? How can it help people? What are the benefits of joining a class action suit? So we’ve put together a simple guide so you can understand what exactly is a class action lawsuit and how it can help you.

What Is The Difference Between A Class Action Suit And A Regular Lawsuit?

Class action lawsuits, like regular lawsuits are pursued when a person has been injured by a defective consumer product or service. The key difference between a class action lawsuit and a regular lawsuit is the number of plaintiffs. In class action lawsuits, several people have been injured in the same or similar ways by the same product, so they work together to get compensation for their claim.

Types Of Class Action Lawsuits

Typically, class action lawsuits are filed against a company that has made a defective product that has caused injury to a large group of people. However class action lawsuits can also occur when a company or organization has committed consumer fraud, corporate misconduct, or illegal or unfair employment practices. Mass tort litigation is another form of class action lawsuit. Mass tort cases are when several people have been injured in the same way after defective medical device or airplane accident.

Why Do People File Class Action Lawsuits?

Class action suits are a great way for everyone to get represented fairly and comprehensively. In class action suits, complaints from thousands of people can be heard at once, rather than dragging out litigation across thousands of individual trials. Class action lawsuits also lower the costs of litigation for the courts, the defendants, and the plaintiffs. Finally class action lawsuits ensure that everyone gets a payment, not just the first to finish the litigation of their claims. Basically, people file class action lawsuits to streamline the litigation and ensure all the injured parties are represented and compensated equivalently.

Class Action Notice

Most people join class action suits when a legal team has realized there has been large scale victimization. Law teams will often reach out to consumers who have purchased certain products and services, former employees, and any possible interested parties with a notice. Legal teams will often run advertisements on television and radio to reach out to other individuals who may have been impacted. If you receive a class action notice or hear about a relevant class action lawsuit, you can either opt out of the lawsuit or contact the representing legal, as well as your own attorney, to learn more about the lawsuit.

How Are Class Action Lawsuits Resolved

Most commonly class action lawsuits are resolved out of court. Trials can be very expensive and bring a lot of negative publicity to companies, so they prefer to negotiate a settlement if possible. If a settlement is reached, each member of the class action suit will receive a settlement check or a rebate. If a class action suit is taken to trial, the judge will rule on the claim. Following a trial there may be an appeals process, but if eventually the courts rule in the favor of the plaintiffs, they will receive compensation for their losses, usually on a payment schedule.

Class actions lawsuits are the best way for the public to protect their interests against large scale abuse from companies, manufacturers, and employers. Class action lawsuits basically streamline the process where there are numerous similar claims against an organization. Class action lawsuits can help thousands of people receive compensation they deserve, so it is worth looking into further. If you have received class action notice from our lawyers at All Injuries Law Firm or another legal team, contact us today. We can give you more information about the claim and help you decide if joining the class action lawsuit will benefit you.