Legal Definitions - class action

Class Action

A class action is a type of lawsuit where a single person, or a small group of people, brings a case to court on behalf of a much larger group of individuals. All members of this larger group, known as the "class," must have suffered similar harm or have similar legal claims against the same defendant.

This legal mechanism allows courts to efficiently manage situations where numerous people have been affected by the same issue, making it impractical for each person to file their own separate lawsuit. The primary purpose of a class action is to provide a way for many individuals with common grievances to seek justice collectively. If the lawsuit is successful, any judgment or settlement typically applies to all members of the class, even those who were not directly involved in initiating the case.

• Example 1: Faulty Medical Device

  Imagine a medical device company sells a new implant that is later discovered to have a design flaw, causing serious health complications for thousands of patients worldwide. Instead of each patient individually suing the company, a few affected patients could initiate a class action lawsuit. These representative plaintiffs would argue on behalf of all patients who received the faulty implant, seeking compensation for medical expenses, pain, and suffering. This approach consolidates thousands of potential lawsuits into one, making the legal process more manageable and ensuring a consistent outcome for all affected individuals.

• Example 2: Unfair Bank Fees

  Consider a large bank that implements a new policy, charging a small, unauthorized monthly fee to millions of its checking account customers. While the individual fee might be small for each customer, the total amount collected by the bank is substantial. In this scenario, it would be impractical for each customer to sue the bank over a few dollars. A few customers could file a class action lawsuit, representing all customers who were wrongly charged the fee. This allows the collective group to recover their small individual losses and holds the bank accountable for its widespread practice.

• Example 3: Workplace Discrimination

  Suppose a major corporation is accused of systematically discriminating against female employees in promotion decisions across various departments. Hundreds of women within the company believe they have been unfairly passed over for advancement due to their gender. Rather than each woman filing a separate discrimination claim, a few female employees could bring a class action lawsuit. They would represent all female employees who experienced similar discriminatory practices, seeking changes in company policy and compensation for lost career opportunities. This method addresses a systemic issue affecting many individuals through a single, comprehensive legal action.