Simple English definitions for legal terms
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Representative action refers to two types of legal actions: class action and derivative action. In a class action, a group of people with similar claims against a defendant can join together to file a lawsuit. In a derivative action, a shareholder can sue on behalf of a corporation when the corporation's management has failed to take action against wrongdoing. These types of actions allow individuals to band together and seek justice in a more efficient and effective manner.
A representative action is a legal proceeding in which one or more individuals represent a larger group of people who have similar claims or grievances. There are two types of representative actions:
Both class actions and derivative actions allow individuals to pool their resources and share the costs of litigation, making it easier for them to pursue their claims. They also provide a way for individuals to hold corporations and their officers accountable for their actions.
For example, a group of employees may file a class action against their employer for violating labor laws, such as failing to pay overtime or providing a safe working environment. In a derivative action, a shareholder may file a lawsuit against a company's board of directors for approving a merger that was not in the best interests of the company.