How Class Actions Work

Class action lawsuits allow many plaintiffs with similar grievances to bring a case against a common defendant. These types of actions are mainly brought against large corporations, or/and big businesses. In this type of case, plaintiffs are referred to as class members, and their interests are represented by the lead plaintiff.

 Class actions are ideal for claimants who cannot pursue a claim on their own because of the costs involved. When people harmed by a common company or person pull resources, they can hire class action attorneys in Los Angeles.

What Is a Class Action Lawsuit?

A class action is a lawsuit filed by many people with a similar claim against a common party, person, or corporation. Class actions are also called multi-district litigation or mass tort litigations. These types of cases are brought against manufacturers that acted negligently and caused injuries to consumers (product users).

Class actions give a chance to seemingly small claims a chance of litigation and bringing the defendant to book. Also, these types of claims promote judicial efficiency because the court won’t have to litigate every single case. Class actions are in most cases related to:

• Defective medication;
• Illegal business practices;
• Discrimination against employees;
• False advertising, and
• Breach of contract

Class actions have many benefits, and a class action lawsuit lawyer can simplify this daunting process.

Benefits of Class Action Lawsuits

There are many benefits of pursuing a class action rather than filing a separate claim. Here are some of the advantages:

1. Lower Costs of Litigation

The cost of litigation of a claim is borne by the members of a class, meaning it will be shared by all plaintiffs. Also, class actions are typically handled on a contingency fee basis. This means that legal fees are only paid after the class members win their cases.

Opportunity to Litigate

Individual claims may not be worth much at times and besides, it’s not always about money. Sometimes the plaintiffs just to pursue a worthy cause and get justice. For instance, an individual action against a company that adds hidden fees to consumer bills may not be worth much in damages and legal fees. However, a class action provides a way for such litigants to seek justice and even recover significant amounts.

Class Actions Allow Uniformity

Class actions allow similarly-affected plaintiffs to recover equal damages or compensation. Additionally, many similar claims have a high chance of receiving a fair judgment because these types of cases are typical of high public interest.

Financial Recovery is highly likely

In class actions, financial recovery is highly likely because of the many cases involved and the attention of the fact that the public is keen on such cases. In separate litigations, compensation is awarded on a first come basis but in class actions, all plaintiffs are entitled to receive financial compensation because they’re all included in a single action.

Experienced Legal Representation

Handling a class action lawsuit is not easy considering that such cases typically involve many claimants, many documents with thousands of pages, costly expert witness fees, and many hours of developing a case. Since class action lawsuits are complicated they should be handled by experienced and skilled attorneys.  Having experienced legal representation allows class members quality representation.

Greater Efficiency

As aforementioned, class actions benefit the judicial system. For instance, one case is handled by one judge and in one court. That said, inconsistent verdicts are not an issue. Litigating many separate claims of a similar nature generally takes more time. Many cases clog up the schedule of the courts, slowing up the justice process.

Receiving Compensation in Class Action Lawsuits

Once the litigation process begins, the lead plaintiff and the attorney representing the class should work together to ensure all class members are well represented. If the class wins the case against the defendant, the class members receive financial compensation.

While class actions typically include many claimants (plaintiffs), each member should receive a part of the total damages awarded. For instance, if the recoverable damages amount to $1,000,000, in a class of 100 members, you’ll first deduct the legal fees and share the balance with all class members equally.

Proper timing is needed when considering a class action because the business (defendant) might file for bankruptcy if they get to know your intentions. In other words, there is a risk of the defendant going bankrupt before an action is brought against them.

How to File a Class Action Lawsuit

The first step in filing a class action lawsuit is consulting an attorney who specializes in class action lawsuits. If your lawyer reviews your case and determines that you have a valid case, they will file legal action on your behalf. Your attorney should guide you through the settlement process and ensure the class members are adequately compensated.

A class action lawsuit is filed by people with a common claim against a common defendant. A legal professional specializing in class actions can help you class action claims better.