What is a Class Action Lawsuit?
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A class action is when one individual or a group of individuals sue a defendant on behalf of a larger group of people, referred to as a “class.” The goal of such a lawsuit would be to hold a company accountable for damages sustained by fraudulent, neglectful, or harmful actions of the company, and to help the afflicted consumers recover.
While the specific reason or cause of class action can vary widely, there are a few requirements that must be met:
- Numbers - There has to be so many people filing this claim against the defendant that it would make it impractical to file individually. A class can vary from hundreds to thousands of people involved.
- Commonality - The suit needs to encompass the same/very similar issues, therefore making it more efficient to deal with the claims together, at once. An example would be if a couple hundred people made claims that a faulty switch on a washing machine caused fires in their homes.
- Adequacy- It’s the courts job to ensure that the class receives a good and fair representation to ensure the best interests of the class are met. Generally very competent lawyers are used for class action suits.