While you probably have heard of class action lawsuits, you might be wondering what they are.
Simply put, a class action lawsuit is a legal proceeding in which a group of people who have similarly been harmed by the same individual, organization, corporation, or event, file a lawsuit seeking compensation from the defendant(s).
As class action claims are very complicated, it’s a smart decision to get help from an experienced attorney who specializes in class action lawsuits. They know the ins and outs of the law and can determine if your case qualifies as a class action, file your lawsuit, and begin the class action proceedings.
The class action attorneys at the Margarian Law Firm have a proven track record of success litigating class actions and have secured many notable settlements on behalf of class members. Our class action lawsuit attorneys have the experience and skills to help you get the proper compensation you deserve!
Types of Class Action Lawsuits
Most class action lawsuits fall under these categories:
Employment: Common types of employment class action lawsuits include disputes over compliance with wage and hour laws, sexual harassment, discriminatory hiring or pay, hostile workplaces, and other matters that are against state or federal law.
Environmental: Environmental class action lawsuits allege that many plaintiffs were injured because of exposure to an environmental hazard.
Consumer fraud: This is the most common type of class action lawsuit and includes a wide range of fraudulent business practices, including defective products, false or misleading advertising, and violations of consumer protection laws.
Securities: Securities class action lawsuits usually refer to situations where investors suffer a loss because of a broker or brokerage firm’s actions, which could include investment fraud, unsuitable investments, or other such practices.
Benefits of Joining a Class Action Lawsuit
- Class action lawsuits allow people who the same product or entity has injured to join together in one lawsuit against the company in question. This enables groups of people who suffered similar injuries or harm to be compensated without having to file their lawsuits.
- In a class action, members stand stronger together and maximize their chances of winning the case rather than if just one consumer sued a particular company on his or her own.
- Class action lawsuits also reduce the number of cases clogging the court system. All plaintiffs need is one lawsuit, one court, and one single decision for all.
- The lawyers typically cover the cost of the litigation and do not charge any legal fees until they win the case and collect the settlement. When this happens, the legal costs will be divided between a large group of people, making the case more affordable.
- On top of that, class action lawsuits simplify the recovery process. Unnamed plaintiffs usually don’t need to do much, to be part of the class. On top of that, class action lawsuits reward all plaintiffs equally and fairly. When multiple lawsuits are filed separately, settlement and verdict amounts may vary. Besides, everyone involved in the class receives something, even if it is not an amount that fully covers damages.
Simply put, if you have a small claim, joining a class action means you don’t need to worry about lawyer’s fees, hiring legal help, or participating in any court proceedings.
How Does a Class Action Lawsuit Work?
First off, an individual contacts a class action lawsuit attorney. If the attorney believes the person’s claim is fit for a class action, they’ll begin working on finding others who are eligible to join it.
Then, a formal complaint is drafted and submitted to the court. The complaint will describe the details about the case and the harm suffered, relevant evidence that shows the potential liability of the defendant, the class that is involved, and how much compensation is being pursued.
A judge reviews the lawsuit for possible class action certification. The court will determine if your class action proposal meets the requirements set forth for certification. For example, the class representative and the attorneys representing the class members need to prove that the number of people who could be covered by the class action is large enough and that it would be impractical and inefficient to file numerous individual lawsuits.
If the court determines that the requirements for a class action are met, the court can certify the class action.
Once a class action is certified, anyone who was similarly affected by the issue is notified. In most cases, class members will be contacted through mail, email, and even text messages. Class members will receive instructions on how to opt out of the lawsuit if they want to pursue a lawsuit on their own.
In most class action lawsuits, the parties reach a settlement agreement before going to trial. In other words, the defendant will offer some type of legal remedy that will be available to all class members. If the case proceeds to court instead of settling, the court will decide on the outcome that applies to all class members.
If the class wins, the court will develop a plan to distribute the amount between the class members.
How Is Money Divided in a Class Action Lawsuit?
Generally, the results of a class action are divided between the lead plaintiffs, participants, and lawyers who worked on the case.
Usually, the lead plaintiff receives their percentage first. Since they devote more time and effort to a class action, lead plaintiffs are often awarded a verdict or settlement that is separate from the amount that’s divided among participants.
Since the lawyers typically work on a contingency basis, they would also receive a percentage for their legal fees and related costs.
Finally, the rest of the settlement money in a class-action lawsuit is divided among the class members.
Contact a Class Action Attorney Today
Have questions about your potential class action lawsuit? Call the Margarian Law Firm now at (818) 553-1000 to have your questions answered during a free consultation. We’re ready to listen to your story and help you decide what options are best for you.