A class action lawsuit is a form of litigation in which a large group of people that have been injured by a common act or set of actions collectively bring a claim to court. One or several named plaintiffs bring the suit on behalf of a proposed class. These sorts of cases often arise in a variety of situations. On example would be within the context of employment situations, such as when a company is accused of illegal hiring or salary practices. Another example would be products liability cases in which a suit is filed against a drug company for making illegal claims about their product, or for causing deaths or physical damage to those taking the drug. A third example would involve environmental issues like the contamination of drinking water of the disposal of toxic waste.

Once a class action is initiated, the class must be certified pursuant to Rule 23 of the Federal Rules of Civil Procedure (adopted by many states in varying forms). The proposed class must meet certain characteristics in order for the action to proceed. First, it must be so large as to make individual suits impractical. There also must be common legal or factual claims. Third, the claims or defenses must be typical of the class. The representative parties must also adequately protect the interests of the class. In many cases, it must also be shown that there is a risk of substantial prejudice from separate actions, that declaratory or injunctive relief benefitting the class as a whole would be appropriate, or that common issues between the class and the defendants will predominate the proceedings, as opposed to individual fact-specific conflicts between class members and the opposing party, and that the class action, instead of individual litigation, is a superior vehicle for resolution of the disputes.

In order to keep the class members informed about the litigation and proceedings, a notice procedure is followed. First a notice describing the class action must be sent, published, or broadcast to class members. Class members will have the opportunity to opt out of the class and proceed with their own litigation if they so choose, assuming timely notice to the class counsel and court. If there is a settlement proposal, the court will usually direct the class counsel to send a settlement notice to all the members of the certified class, informing them of the details of the proposed settlement

The monetary awards from a class action lawsuit are split into two portions: punitive and compensatory damages. Compensatory damages are meant to address the actual damage suffered by the class members, such as illness or loss of life. Punitive damages are a form of punishment for the entity or entities that committed the act causing the harm. These damages can be particularly high when it is demonstrated the entity or entities has shown great disregard for the health, safety or emotional well being of the class members.

Attorneys in these types of cases work on a contingency basis, meaning they do not charge any fee if the suit is not successful, but if it is successful, they will receive a portion of the award.

Class action lawsuits have a number of advantages. By aggregating a large number of individual claims into one representational lawsuit, it increases the efficiency of the legal process and lowers the costs of litigation. Second, a class action may overcome the problem with small recoveries not providing the incentive for any individual to bring an action. Third, a class action can ensure that all class members receive relief whereby a court can equitably divide the assets amongst all the members if they win the case. Finally, a class action avoids the situation where different outcomes create inconsistent standards of conduct for the defendant.

On the other hand, criticisms exist as well. Some argue that confusing notices are published that prevent class members from being able to fully understand and effectively exercise their rights.

This article should not be construed as legal advice. It is provided as a public service.