Class action lawsuits can be a big deal when people want to hold a company or group accountable for something that hurt a lot of people. But there’s more to it than just signing up and hoping for the best. It’s a long process, and understanding how it works is important, especially if you ever find yourself involved in one.
If you’re not sure about the next steps or need help understanding the process, you can always visit litigationconnect.com for helpful information.
Whether or not you’re a plaintiff, you need to know these six core points about a class action suit:
1. What Exactly is a Class Action Lawsuit?
At its core, a class action lawsuit is a way for multiple people to come together to sue someone, typically a company, for the same issue they’ve all faced.
If all these individuals file separate lawsuits, the logistics would be incredibly difficult to handle. So instead, the law allows all of them join forces, file together, and go after the company as one. It’s cheaper and more efficient than trying to go it alone.
2. What the Process Entails
A class action typically begins with a complaint. When someone notices a widespread problem that could affect many people, they file a complaint with the court.
For a case to move forward as a class action, the court has to decide if it’s valid. This is called class action certification, and it’s the court’s way of making sure that a lawsuit really represents a broad group of people.
Sometimes the court will decide that a case doesn’t meet the criteria to be certified as a class action. For example, if the issues affecting people are too different, it could be deemed more appropriate for individual lawsuits. However, there are ways to beat this denial, and your chances of approval are better with a competent lawyer.
3. What You Should Do If You Receive a Class Action Notice
Once the court certifies the case, everyone who’s potentially part of the class action gets a notice. The notice is a detailed explanation of what the lawsuit is about, how it could impact you, and what your options are. Every plaintiff will now have to make the decision of whether to proceed or opt-out.
Now, opting out might seem like the best choice if you’re unsure about the lawsuit or feel like you don’t want to get involved. But if you opt out, you won’t receive any potential payout or compensation from the case. You also lose the opportunity to join the lawsuit later.
But if you do stay in the case and it wins or settles, you might be entitled to some compensation, even if you didn’t spend much time on the legal process. The notice you receive will outline the next steps, and if you’re still not sure of how to proceed, then you should probably talk to a lawyer.
4. The Possibility of a Trial
Class action lawsuits usually end in one of two ways: a settlement or a trial. A settlement happens when the defendant (usually the company) agrees to pay a certain amount of money or take specific actions to resolve the issue without going to trial.
However, if the case doesn’t settle, it goes to trial. Trials are long and difficult, but in some cases, it’s the only way to get a resolution. A trial involves both sides presenting their arguments and evidence in court, and the judge or jury will decide the outcome.
While Forbes says that 95% of cases settle before they go to trial, there’s still a chance that your case could end up in a courtroom, so be prepared for that.
5. Why Class Action Suits Make a Difference
Class actions provide a way to hold corporations accountable. If only a few people were affected by a company’s negligent act or misconduct, they’d likely never go through the expense of suing. However, when thousands of people face the same problem, it is a big deal that the company can’t ignore.
Class action lawsuits are the only real way to force companies to pay attention to these issues. Individual lawsuits can’t get the same kind of impact.
6. The Common Types of Class Action Lawsuits
There are different reasons why people file class action lawsuits, but some types are more common than others. The most common types include:
- Product liability class actions
- Employment class actions
- Environmental class actions
- Data breach class actions
- Consumer protection class actions
- Fraud class actions
- Securities class actions
