Class Action
Class Action
A class action is a case brought by one or more persons (“Lead Plaintiffs”) on behalf of themselves and all other persons who suffered harm as a result of a single event or common practice.
Should my case be brought as a class action?
A case can only be brought successfully as a class action if your attorneys can demonstrate “commonality.” Commonality means that each class member suffered harm in a similar fashion.
Example of class action
A credit card company advertises that its rates on its new credit card will never change during the next twelve months. You obtain the card, and make a late payment. The credit card company increases the rates on all accounts with a late payment. All persons who made late payments suffered damages in a similar way. The case can be decided for all class members simply by determining whether the credit card company violated the law by changing the rate after a late payment was made.
Example of individual action
You purchase a used car from a used car dealer. You express concern about the radiator at the time of the sale. The salesman promises you that if the radiator breaks during the next six months, the dealer will replace it for free. It breaks, but the dealer won’t honor the salesman’s promise. You claim is unique and could only be proved through individual testimony.
What does class certification mean?
After filing the lawsuit, the Lead Plaintiffs must seek class certification from the court. If certification is granted, notice will be provided to the class members and they will have an opportunity to opt-out of the class. If a class member decides to stay in the class, he or she will be bound by all future proceedings in the case – good and bad – including monetary payments resulting from a settlement or judgments, and dismissals.
Why should I file a class action?
Many class actions involve small amounts of money per victim. The monetary incentive for an individual person to take action is often lacking. The reasons most persons hire attorneys to bring a class action are to seek justice and protect others in the future. Without the class action procedure, fraudulent and unethical companies could rip off consumers with impunity. When your claim is joined with thousands of others, a powerful force is created.
What is the role of the Lead Plaintiff?
When a class action is filed by the Lead Plaintiff, the Lead Plaintiff assumes a fiduciary duty to the class members to act in their best interest. That duty is satisfied by hiring competent attorneys to conduct the litigation and keeping abreast of major developments in the case.
Will it cost me anything to hire attorneys to prosecute my class action?
No. You will not be responsible for any fees or costs.
How do the attorneys get paid?
Attorneys will be paid out of the fund generated for the class members upon settlement or judgment. Occasionally, defendant will pay the attorneys fees instead. Regardless, the amount of the fee is subject to numerous legal guidelines and standards and must be approved by the court.