What is a Class Action?

On Behalf of | November 2, 2020 | Civil Litigation, Class Action

When an employee or a group of employees share a common complaint against their employer, they may file a class-action lawsuit against that organization. A class action allows the courts to manage a number of similar claims more efficiently as well as give plaintiffs who may not have pursued a claim before a chance to have their voice heard.

There are various types of lawsuits that can become class actions. Some of the more common lawsuits include:

  • Violations of consumer protection statutes, such as false advertising claims or debt collection practices
  • Broker or securities fraud
  • Workplace discrimination such as lower wages based on gender or race
  • Wage and hour violations, such as a group of employees misclassified so the employer doesn’t owe overtime pay

Class membership needs to be approved before a lawsuit can proceed. Click here to read more about the requirements needed. https://www.law.cornell.edu/wex/class_action

Most class actions rules provide that members can opt-out of a class, allowing the member to pursue a claim of their own. The member needs to notify the class counsel within a certain time; otherwise, he or she will be bound by the lawsuit’s outcome.

Class Action Settlements

When a settlement is reached between the class and the defendant or defendants, it must be approved by the court to become final and effective. The court must notify all class members of the settlement and give them the opportunity to object. In some cases, the court may also require parties to allow members another opportunity to opt-out.

There may be times when the court can reject the settlement if does not provide a reasonable recovery for the class members. The next steps are either to propose a new settlement or the case can go to trial.

Why You Need a Class Action Lawyer from Sanford Heisler Sharp

Class action lawsuits can be extremely complicated, especially if your lawyer has no experience in class actions. That’s why you hire lawyers who are experienced and have a successful track record. Sanford Heiser Sharp, LLP, has obtained more than $1 billion for our clients. If you believe you have a class-action lawsuit, please contact us for a case evaluation.