What is a Class Action Lawsuit?
A class action lawsuit is a type of civil complaint filed by a group of plaintiffs who have been similarly injured by a common defendant. Instead of bringing individual lawsuits, members of a class action lawsuit join forces and collectively file one lawsuit seeking damages for their injuries.
One plaintiff, called a lead plaintiff, must act as a class representative in order for a class action lawsuit to go forward. Other plaintiffs joining the class action suit then must be similarly injured as the lead plaintiff in order to become part of the mass lawsuit.
Class action lawsuits are commonly seen in cases where a defective drug or consumer product is accused of similarly injuring a large number of parties. One of the most famous examples of a class action lawsuit was depicted in the movie “Erin Brockovich.” Residents of the Southern California desert town of Hinkley sued Pacific Gas & Electric Co. for releasing dangerous chemicals into the town’s ground water, causing many residents to develop cancer and other serious health problems.
After years of legal wrangling, the Hinkley class action was settled in 1996 for $333 million, making it at the time the largest settlement ever paid in a U.S. direct action lawsuit.
Class action lawsuits may seek compensatory damages to cover the costs of the plaintiffs’ medical bills, lost income, and other out-of-pocket expenses. Class action plaintiffs may also request punitive damages, which may be awarded by the judge or jury to in essence punish the defendants for their wrongful conduct.
Advantages of Class Action Lawsuits
There are many advantages to joining a class action case instead of file a lawsuit as an individual. The old adage “there is strength in numbers” certainly applies to class actions, since many defendants will take a lawsuit brought by dozens or even thousands of plaintiffs more seriously than one brought by a single plaintiff. Also, class actions are more cost effective than individual suits because they allow plaintiffs to pool their resources and proceed as a unified group against a common defendant as a large group.
Bringing a class action case can extend the length of time plaintiffs have to bring their suit without the case being barred by statutes of limitation.
The rules for class action lawsuits are included in Federal Rules of Civil Procedure Rule 23. A judge must certify a plaintiff’s lawsuit as a class action before other plaintiffs can join the case.
Joining a Class Action Case
When a plaintiff joins a class action lawsuit, they usually are required to sign papers stating they are giving up their legal rights to sue as an individual and agreeing to accept the damages award, if any, earned by the class.
Most attorneys represent class action lawsuits on a contingency fee basis, meaning the plaintiffs pay no attorneys fees up front and the attorneys are only paid a percentage of the damages award if the case is successful. If there is no financial damages award given by the judge or jury, the attorneys working on a contingency basis are paid nothing.
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