What Is a Class-Action Lawsuit and How Does It Work?

As the name implies, a class-action lawsuit is a legal action brought by an attorney or a group of attorneys on behalf of multiple plaintiffs. These plaintiffs form a class that is collectively represented by the actions of the same legal team. Class-action lawsuits generally seek compensation or another form of redress as the result of fraud or other criminal actions that have affected the entire group.

Large class-action lawsuits against leading pharmaceutical manufacturers, health insurance providers and financial service institutions are just a few examples of cases that have made headlines in recent years. New class-action action cases are currently pending against a number of companies as well, so it’s important to stay current on Prolia class action lawsuit updates and other potential suits.

Common Reasons for Class-action Lawsuits

Class actions are filed for all the same reasons as individual lawsuits: the only difference is that class actions represent the interests of a number of plaintiffs instead of a single person. These types of cases are commonly brought against private companies that have manufactured or sold products that are defective or that were marketed in a misleading way.

Service providers, governmental agencies and banking and investment firms are also frequent subjects of class-action lawsuits. In addition, a class action may be brought against an employer by a group of prospective, current or past employees on the grounds of unfair compensation, intolerable working conditions or discriminatory hiring or promotional practices.

In some class actions, the perceived damages are so minor that many potential plaintiffs aren’t even aware that they’ve been impacted. In other instances, the damages are readily apparent but affect so many people that bringing individual cases is impractical.

Filing a Class-action Lawsuit

A class-action case may be filed in a state or federal court, and the class of plaintiffs must be certified based upon the requirements of the jurisdiction in which it is filed. Class actions are generally only allowed when the number of potential plaintiffs is very large and when the amount of damage suffered by each plaintiff is similar in extent and scope.

The attorneys handling the case must also agree to treat each plaintiff equally and to provide fair compensation to all members of the class that is proportional to the loss or damage that each has suffered.

The Advantages and Drawbacks of Class-action Lawsuits

Class actions have benefits for both the plaintiffs and the defendants. When acting together, a group of plaintiffs is able to exert greater influence on a defendant, and this increases the likelihood that the case will be settled without the need for a protracted court battle.

Class-action suits also help to reduce the burden that would otherwise be placed on the legal system if hundreds of individual plaintiffs simultaneously brought suits against a company or other entity. These types of cases allow large numbers of plaintiffs who might not otherwise be able to pursue legal action due to cost and time constraints to seek redress for damages and also help to ensure that plaintiffs with similar damages are all treated equally.

In addition, class actions are often advantageous to the defendants because they allow them to save on time and legal costs by addressing a large number of potential claims all at once instead of individually.

While there are many advantages to class-action lawsuits, there are also a few disadvantages. Due to the complexities involved with bringing a class-action suit, the plaintiff’s attorney fees and costs are often much higher than for an individual legal case. This may result in a smaller settlement for each individual plaintiff. In cases that involve defective products or unfair pricing, the plaintiffs may receive gift cards, coupons, product replacement or other forms of compensation in lieu of a cash payment.

Class-action cases that aren’t quickly settled may take more time to decide than less complex cases, and each plaintiff who participates gives up his or her right to sue on an individual basis. Individual plaintiffs also have very little control over the case and must go along with the class in order to receive any type of compensation or redress.

Communicating with Potential Claimants

Upon filing a class-action case, the attorneys involved will attempt to identify and contact as many potential plaintiffs as possible. This may be accomplished by obtaining and reviewing corporate records followed up by direct written or email correspondence to individuals who may qualify to join the plaintiff’s class. In some situations, however, potential claimants can’t be readily identified.

This often occurs when the case involves widely distributed consumer products that may have been anonymously purchased by large numbers of individuals. To reach potential plaintiffs in these instances, the attorneys may issue press releases, place advertisements on print, television and online media outlets and file notices in the legal sections of major newspapers.

In most class-action cases, individuals who are identified by the attorneys as members of the plaintiff’s class are automatically included as parties to the lawsuit unless they specifically opt out. In other instances, however, prospective claimants must take preliminary steps in order to join the plaintiff’s class.

What to Expect as a Member of a Class-action Lawsuit

Plaintiffs in a class-action lawsuit will generally receive written notice by the legal team regarding the pending action and their rights as claimants. If opting in is required, the parties will also be instructed on the proper methods for doing so. Important dates related to the case will be provided in the initial and follow-up correspondence.

As the case progresses, periodic updates may be delivered to the plaintiffs by email or in writing, or the claimants may be directed to a website for tracking the case. Prolia class action lawsuit updates as well as updates on other potential class actions can be obtained from attorneys who are currently investigating the possibility of filing suit on these matters.

Upon settlement or final judgment of a case, the plaintiffs will receive the stipulated award. The award may be presented as a check, rebate, or coupon that’s mailed to each member of the plaintiff’s class, or it may take another form based on the settlement agreement or decision.