Class action lawsuits often provide an effective way to hold negligent parties accountable, although because they involve many individuals and can stretch out over many years, many people view them negatively. This is primarily because class actions spread the award out over many people, rendering each individual’s payout much smaller. Still, class action lawsuits do allow people to join together and secure successful results when separate lawsuits are unlikely to succeed.
A class action lawsuit can start after a single person contacts a lawyer. If the attorney believes the individual’s claim is eligible for a class action, they’ll begin efforts to locate others who may take part. There is no minimum number of people to launch one of these lawsuits, the attorney will be looking to have enough people to make an impact.
Here are some FAQs about class action lawsuits.
Class Action Lawsuit – Defined
A class action lawsuit is when a group of individuals file a lawsuit against a party or multiple parties accused of the same action. Class actions help in situations where a single lawsuit is unlikely to be cost effective, for instance if a product is only worth $100. While a single person may not worry a large corporation, multiple people can consolidate their claims into one case, increasing its value and making the efforts more cost effective.
Examples of class action lawsuits might include:
- Defective or dangerous products
- Toxic exposure
- Illegal or unfair employment practices
How Do Class Action Lawsuits Work?
By aggregating the value of their claims, parties in a class action lawsuit can rely on strength in numbers to hold a negligent party accountable and liable.
Generally, a class action lawsuit begins by notifying potential participants of their eligibility to join. Once notified, a person has the choice to opt in to the class action lawsuit. Once a part of the claim, the party will likely not have to do anything else, simply wait for resolution and settlement.
It does not cost anything to join a class action lawsuit. The only thing a person needs to consider is if they want to strike out on their own and sue individually. If you think you have a significant enough case, you may wish to speak with an attorney who specializes in product liability cases. If a party participates in a class action lawsuit, however, they cannot later launch their own lawsuit – so be sure you have all the relevant legal advice you need.
Advantages of Joining a This Type of Lawsuit
Class actions are an effective way for those with small claims to band together and hold a negligent or dishonest party accountable. If you have a minor claim, participating in a class action means you will not incur attorney fees, hiring legal assistance, or showing up for any court proceedings.
Class actions also help to increase the efficiency of the court system by consolidating cases, minimize stress on individuals, allocate consistent compensation. It is also important to hold companies accountable for multiple “small” infractions that they inflict on consumers.
How Is Settlement Money Divided? Money is divided according to the terms provided by the settlement. Typically, the results of a class action are divided between the lead plaintiffs, the balance of the participants, and the attorneys who took on the case.
Lead plaintiffs are those individuals who are filing the lawsuit on behalf of the class action members. While members don’t have any role besides joining the case, lead plaintiffs have more responsibility. Their name is attached to the lawsuit on others behalf. Lead plaintiffs start the class action, show losses that are representative of the other parties, hire an attorney and file the lawsuit, and only accept settlements that are in the best interests of class members.
Do You Have a Case?
If you believe that you have a claim against a company or entity in a product liability issue, call Probinsky & Cole for a free consultation and more advice.
