May 09 2011

What is a class action lawsuit?

Category: Law


Class Action LawsuitA class action lawsuit is a type of lawsuit where a claim/complaint is filed against one company or organization by a group of individuals who have been adversely affected, in some way, shape or form, by the company’s products, services, or actions. It is essentially a way to create strength in numbers and save time and money by allowing one large group to file one claim instead of several individual claims. If the class action suit ends with a monetary recovery, every member involved in the suit will share in the awarded damages (after attorney fees, of course). Aside from monetary damages, a judge can also issue a declaratory judgment by itself or along with some other relief like an injunction that will ultimately order the defendant to stop a certain action. Class action lawsuits will often involve companies from specific industries like: tobacco, pharmaceuticals, insurance, finance, and technology.

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