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What is a class action?

It's simple. A class action is a lawsuit filed by one or more plaintiffs (who are known as the "named plaintiffs") on behalf of others who have a similar legal claim. Because they allow people to join together as a group in one lawsuit against common defendants, c lass actions are important for consumers.
 
The Ten Stages of a Class Action
  1. Filing
    Case Initiated - A complaint is filed by the attorney(s) on behalf of the plaintiff(s).
  2. Response
    The defendant(s) respond(s) with an answer, motion to dismiss or other legal pleading.
  3. Discovery
    Both sides disclose evidence to each other that supports their respective cases.
  4. Certification Request
    Plaintiff(s) file(s) a motion to certify the case as a class action.
  5. Certification Opposed
    Defendant(s) file(s) opposing briefs to the plaintiff(s) motion for class certification.
  6. Class Action Certification
    Judge certifies or denies the class action (if the judge denies, the case can continue as individual lawsuit(s) filed by the plaintiff(s).
  7. Notification
    If certified, notification of class action to prospective claimants, who must choose whether to stay in the case or file their own individual case.
  8. Settlement Phase
    Deadline is set for class action members to submit claims with supporting documentation.
  9. Pay Out
    Proceeds are distributed to class members.
  10. Closed
    The distribution of the proceeds to class members has been completed, and the time for filing a claim under the settlement has expired.
  • Dismissed
    A case can be dismissed at any point during the ten-stage process. This is not actually a stage, but the end of the process. This means that the case has terminated, at least for now, without the plaintiffs receiving any relief. The plaintiffs may have voluntarily dismissed the case, or the court may have ordered the case to be dismissed. Depending on the circumstances, the plaintiff may be able to file the action again later.
NOTE: The stages outlined above are only meant as a general guide, and may not be applicable to all class action cases. Some class actions will proceed to a trial when settlement between the parties cannot be reached.
 
Why are class actions important?
The ability to join together in one lawsuit is particularly important for our judicial system to function efficiently. Without class actions, thousands, possibly millions of claims might theoretically flood the court system. Instead, the class action procedure encourages the filing of one single case on behalf of all people harmed, minimizing the need for thousands of individual cases. More importantly, class actions encourage more responsible behavior on the part of corporate defendants.
 
Why are class actions under attack?
Over the past several years, certain corporations, PAC's, and other interests have attacked class actions and the attorneys who bring them. Much of this criticism has been unfounded. Find out why citizen's groups, consumer groups and other public watchdogs are trying to safeguard your rights.

The old adage "power in numbers" holds true in class action cases. By spreading the costs of litigation, which can be substantial, among many people, each individual claim can achieve justice. Class actions, comprised of groups of consumers working together to stand up for their rights, demand the attention of corporations and other wrongdoers.

In order for a court to certify a case as a class action, the plaintiffs must prove four legal requirements under the law.

  1. Numerosity: There must be many people who can be part of the class action. If only you and two other people suffered a loss as a result of a defendant's conduct, the numerosity requirement would not be satisfied.
  2. Commonality: There must be a question of law or fact that is common to all the class action members. If a company defrauded one thousand people in the same investment scheme, this requirement might be satisfied. However, if the same company defrauded one thousand people in different investment schemes, this requirement might not be satisfied.
  3. Typicality: The claims of the named plaintiffs who filed the class action must be typical of the class action members on whose behalf the case is filed. If the named plaintiffs suffered different damages or have different interests than the members of the class action, this requirement would not be satisfied.
  4. Adequacy: The named plaintiffs must fairly and adequately represent the interests of the class members. The court must find that the named plaintiffs will act in the best interests of the whole class.

    Once a court is satisfied that the plaintiffs meet the four legal requirements for a class action, it will certify the case as a class action.

     

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Charles C. Foti, Jr.
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