Frequently Asked Questions about Class Actions
Q: What is a class action lawsuit?
A: A "class action" lawsuit is one in which a group of people with the same or similar injuries caused by the same product or action sue the defendant as a group. If they win, they divide up the class recovery fund according to the amount each person lost.
Q: Can any lawsuit be a class action?
A: No. People seek justice in class action lawsuits when their injuries have been caused by the same conduct or defective product, such as a particular pharmaceutical drug or motor vehicle. It only makes sense for the attorney to file the case as a class action if numerous people were harmed in the same way by the same product or action. Most class action statutes require a minimum number of members to form a class.
Q: So class actions are lawsuits involving defective products?
A: Defective products are at issue in most class actions, but not all. Other types of conduct over which people have sued as a class include consumer fraud, corporate misconduct, massive accidents, environmental torts, securities fraud, and illegal employment practices.
Q: Why not just bring a regular lawsuit?
A: Class actions are efficient. They bring together and dispose of thousands of claims at one time that would be impractical to litigate individually. The judge decides the basic question of who wins with regard to an entire group of people who suffered similar injuries. If the class wins, the amount of recovery is divided among the plaintiffs in the class.
Q: What should I do if I receive notice, as a potential class member, of a class action?
A: The notice should adequately explain to you what the defendant allegedly did, manufactured, or sold that caused you and others injury. It should also explain your rights if you opt into the class or decide to opt out. All notices name the attorney or attorneys responsible for filing the class action and representing the class. If you have questions after you have received the notice, you should contact your attorney or the attorney named in the notice.
Q: How do I know whether to "opt out"?
A: Opting out of an existing lawsuit is the best course of action if your loss was great, your case is strong, and you are financially and emotionally prepared to pursue a lawsuit on your own. Another reason for opting out is if it sounds, from the description in the notice, like your experience or injury is quite different from those of the rest of the class. If you have any doubts, you should seek advice from a class action lawyer.
Q: Does my attorney stay in touch with me if I am in a class action?
A: The lead or named plaintiff stays most involved with the attorneys in the class action as the case progresses. Other class members are not involved on such a regular basis. The attorney will inform you, usually by mail, of any significant developments or events in the course of the litigation.
Q: If several law firms have filed lawsuits regarding the same thing, should I join all the lawsuits?
A: No. When more than one class action has been filed over the same injuries against the same defendant, they will be consolidated. You are not allowed to sue more than once or to join more than one class regarding the same issue against the defendant.
Q: Will I get more money if I join the class action?
A: In class actions won by the plaintiff class, all injured plaintiffs receive something. The common fund is distributed to the class members in proportion to the amount each member lost. In individual lawsuits, the potential for recovery may be quite great, but absent a class action, payment by the defendant is on a first-come, first-served basis.
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