What To Expect From Class Action Lawsuits

A class action lawsuit is a powerful tool for people who sustain the same damages or injuries from one source. Plaintiffs in this type of lawsuit pooled resources to stand up against huge companies in a way that would not be feasible economically if tried individually. In a class action lawsuit there is at least one person or entity to act as the group’s representative. The group needs an attorney who specializes in class action lawsuits such as those from Saltz, Mongeluzzi, & Bendesky P.C. to guide them through the process.

Why Many People Prefer Class Actions

Every litigant can bring their own action, but why do people join their actions into a class action lawsuit?
Doing so is a more practical option for not only the plaintiffs but also for the court and the defendants. Below are reasons class action lawsuits are often preferred:

They are practical for plaintiffs. A class action means only a set of witnesses, documents, issues, and experts is involved. With such efficiency, only one law firm handles the case, which is cost-effective.
A lot of individual cases don’t have sufficient damages. Without enough damages, the expense and time needed to bring a case separately cannot be justified. But a class action case that claims hundreds of millions of dollars for millions of class members is worth the effort and time.
Every class member gets a fair share of the settlement. If multiple lawsuits are filed, the first few claimants to win may receive all the defendant’s assets or the insurance proceeds, leaving claimants who win their cases later with little to no money.

Examples of Class Action Lawsuits

Below are different categories of class action lawsuits:

Securities. Plaintiff investors can bring these lawsuits after being harmed by the improper conduct of the defendant companies including whistleblower litigation and investor fraud.
Personal injury or product liability. In general, these lawsuits are brought if a defective product causes physical harm to some people. An example is pharmaceutical fraud which involves manufacturing and distributing harmful drugs that a lot of patients have used. Other examples of injury include mass disasters like nursing home or social work negligence, sexual abuse, sports litigation, and human rights violations.
Consumer. Such lawsuits hold business entities participating in systematic, illegal, or fraudulent business practices that harm or scam the consumer. They include antitrust cases such as market allocation agreements, price-fixing, and monopolistic schemes.
Employees. Workers who experience discrimination, workers who have immigration worker problems, those who have hour and wage concerns, and those with work-related injuries can file class-action lawsuits against their employers.

The Stages Involved in a Class Action Lawsuit

A class-action lawsuit involves the following stages:

Hiring a law firm. After sustaining damages or injuries also suffered by others, victims may want to hire a reputable class action law firm. Certifying the class, approving a lead plaintiff, negotiating cases, and trying cases require legal expertise.
Filing a lawsuit. Often, a class action lawsuit starts by filing a complaint naming a class representative or more. This representative will file the suit for the proposed class. The defendant in the case can respond to the suit.
Getting class certification. The representative of the class files a motion to have the proposed class certified by the court.
Trying the case or negotiating a settlement. Following the certification of the class and completion of the notice period, the lead plaintiff will start the case against the plaintiff. A judge or jury will make a decision on the case. if a settlement or verdict or reached, every member of the class should be notified.
Paying and distributing the damages. Often, the law firm that represents the class receives a percentage of the settlement amount first. The second person who gets paid is the lead plaintiff due to the extra work they did. Then, the class members get paid. The presiding judge will approve all settlements.