Class Action Lawsuit Process
The class action lawsuit process is designed to ensure that as many victims of wrongdoing as possible receive justice and compensation. It saves plaintiffs time, money, and energy by allowing them to benefit from the results of a single suit rather than having to retain individual representation and go through the process of taking legal action alone.
- A class action lawsuit allows a group of plaintiffs with similar claims to sue a common defendant, making it efficient for cases that are too small to pursue individually.
- The process involves hiring a lawyer, filing a lawsuit, class certification, discovery, and either settlement or trial.
- Class members are notified about the lawsuit, can opt out, and may receive compensation if the case is resolved in their favor.
What Is a Class Action Lawsuit?
A class action lawsuit is a legal proceeding in which a “class” of plaintiffs file a collective legal action against a common defendant. This type of lawsuit provides an efficient way to resolve claims that are too small to litigate individually.
The parties to a class action include the class members (a group of people who experienced the same legal harm) and the defendant who committed the harm. Lead plaintiffs are the named parties in the suit—the “Jones” in Jones v. Doe Inc., for example—and appear on behalf of the class in court. The lead plaintiff is generally the party who hires a lawyer and brings the suit. However, they may also be a party who has an especially compelling case against the defendant.
Commencing a class action lawsuit as a lead plaintiff may seem like an imposing task, and you may feel that you have no idea where to start. However, by breaking the class action process down, it’s easier to see that getting started is not as difficult as it might seem, especially with the guiding hand of a skilled class action attorney.
Step 1: Hiring a Lawyer
The class action process begins when the lead plaintiff hires a law firm specializing in class actions, which will represent both the lead plaintiff and other parties who experienced the same harm. An attorney can determine if you have a viable class action by making sure that your case meets the appropriate qualifications. Class Action U can help you get a class action lawsuit started by connecting you with an experienced lawyer.
Step 2: Filing a Lawsuit
Once your lawyer reviews your qualifications for a class action lawsuit, the suit is filed in court. This step involves:
- Drafting the complaint – This document outlines the legal and factual basis for the claim.
- Filing the complaint in the appropriate court – This is a crucially important step and requires a close look at the applicable jurisdiction and venues.
- Serving the defendant with the complaint and summons – This gives the defendant legal notice of the case against them.
After the defendant has been served with the complaint, they may file a motion to dismiss. A judge will rule on the motion to dismiss. If it is denied, the case can proceed to the class certification process.
Step 3: Class Certification
After the suit has been filed, the judge decides whether the case meets the requirements to proceed as a class action. The court evaluates several factors when deciding whether to certify a class action. Requirements for class action suits include:
Commonality
Commonality means all plaintiffs in a class experienced similar harm. This tests the legal and factual parameters underlying the case itself.
Typicality
Typicality tests whether the lead plaintiff’s interests sufficiently represent the interests of the class as a whole.
Numerosity
Numerosity means that there must be a sufficient number of people affected by the issue to make a class action lawsuit more efficient than smaller individual suits. There is no strict number to satisfy numerosity. The requirement is determined on a case-by-case basis.
Adequacy
Adequacy refers to the ability of both the lead plaintiff and their attorneys to fairly and adequately protect the interests of all plaintiffs in the class. This means:
- The attorneys must be reasonably experienced with the issue at hand.
- There are no major conflicts of interest between the attorneys, the lead plaintiffs, and the class.
- The lead plaintiffs have enough legal incentive to pursue the case.
Is a Class Action the Best Method for Fair and Efficient Adjudication?
A key overarching issue in a class action lawsuit is whether it is the best method for fair and efficient adjudication of multiple claims. Again, in order for this to be true, a class action must lawsuit represent the interests of the entire class. The goal is to prevent unfair or conflicting rulings on the same subject across different suits.
Step 4: Settlement or Trial
The settlement or trial phase is when the class action suit is legally resolved. Settlement proceedings or trials determine the appropriate remedies and level of compensation for the plaintiffs, as well as any other legal consequences for the defendant.
Discovery
After the class has been certified by the judge, the case enters discovery, an investigatory stage during which attorneys exchange and review evidence in multiple forms, such as documents, interrogatories, and depositions. Discovery is a complex process in class action suits and, depending on the complexity of the case, may take years to complete. After discovery, the case will be settled or proceed to trial.
Settlement Negotiations or Trial Proceedings
Few class action suits are actually tried in court. Settlement occurs when parties reach an out-of-court agreement on appropriate legal consequences for the alleged harm. This is by far the most common form of resolution in personal injury and class action suits.
Taking a case to trial is not usually the preferred resolution in class action suits, especially for defendants who view it as a gamble in which a jury might find them liable for significantly more money than they might pay in a settlement. Defendants also run the risk of legal consequences beyond financial compensation.
However, if settlement negotiations break down and no agreement is reached, the case will proceed to trial. Overall, trial proceedings are lengthier, riskier, and more complex than settlement. A trial concludes with a judge or jury rendering a decision in favor of the class or the defendants.
Step 5: Notifying the Class Members
An important step in class actions involves notifying class members that legal action is being taken that could affect their rights. Class notification involves:
- Giving class members the opportunity to opt out of the case. A majority of class action suits are known as “opt-out” class actions. If a class plaintiff does not choose to opt out, their interests are considered legally bound by the suit, and they may not sue again on the same issue.
- Informing class members about the outcome and distributing monetary awards. This is commonly done by contacting plaintiffs directly or advertising the availability of funds to people meeting case criteria.
- Determining the fate of unclaimed funds. The money may be redistributed among class members, escheated to the state, donated to a relevant cause, reverted to the defendant, or otherwise handled per court instructions.
Do I Have a Potential Class Action Case?
A class action lawsuit can be a smart legal decision to address the harm that you and others have suffered. Class Action U is dedicated to empowering consumers and helping them exercise their legal rights through the class action process. If you are interested in starting or joining a class action lawsuit, contact us today to get in touch with a skilled attorney.
"*" indicates required fields
