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Class Action Lawsuits: Powerful Tools for Advancing the Public Interest

On Behalf of | August 26, 2024 | Class Action

Class action lawsuits are a unique avenue within the legal system for advancing and protecting the rights of broad segments of the population in a variety of contexts. Unlike individual lawsuits, which focus on harm to an individual or small number of people, class actions combine the claims of numerous individuals who have suffered similar harm from the negligent party. This collective approach not only amplifies the voices of those affected but also achieves justice on a wider scale.

Historically, class action lawsuits have played a pivotal role in upholding rights, rectifying systemic injustices, and creating progressive social change in a variety of contexts – employment practices, public policies, individual rights, consumer protection, and more.

Class actions have been a cornerstone of our practice at Sanford Heisler Sharp McKnight since our inception. Our team has secured landmark class action victories in many different situations, from addressing discrimination in suits against major corporations to recovering compensation for retirement plan participants in 401(k) financial mismanagement claims, to name just two categories of claims. Our experience spans class actions on a nationwide scale, involving thousands of people with hundreds of millions of dollars at stake.

How Class Action Lawsuits Work

In class action lawsuits, the “lead plaintiffs” – that is, one or several named individuals – represent a larger group or “class” of individuals who have been similarly affected by wrongdoing. These cases are particularly powerful because they consolidate numerous potential individual claims into a single, cohesive lawsuit, making it feasible to challenge large entities in a way that might not be financially possible on an individual basis.

A critical step in these cases involves defining and certifying the class of plaintiffs. The representative plaintiffs must demonstrate that:

  • The class can be clearly defined.
  • The lead plaintiffs suffered the same type or harm as the proposed class.
  • Common facts or legal issues underlie the common harm that the class suffered.

The class might consist of consumers, employees or other groups who have suffered similar harm due to the same unlawful practices. For instance, an employment class action suit might target an employer’s discriminatory pay practices affecting female employees across different departments or locations.

Class actions carry the potential to correct wrongs perpetrated in widely divergent scenarios, from wage theft in employment settings to widespread sexual abuse within branches of the military to the denial of fundamental human rights by a state law or court ruling. Justice is the goal of all class-action claims, but specific objectives vary depending on the case. A successful outcome might involve recovering compensation, promoting corporate accountability, enforcing regulatory frameworks, or obtaining judicial recognition of legal rights.

When Does a Class Action Make Sense?

Because class action lawsuits can be so instrumental in promoting public good, they merit careful consideration in cases involving:

  • A significant, quantifiable impact: A class action may be appropriate to address wrongdoing that has a substantial monetary or quantifiable impact on a large group of individuals. For example, if a corporation’s illegal conduct impacts many employees, a class action can streamline the legal process while enhancing the potential for significant compensation and corrective measures.
  • A clearly defined class of plaintiffs: Criteria must exist to identify commonality among class members.
  • A broad public benefit: Successful class actions often yield broad public benefits beyond compensating individual victims. They produce positive systemic changes, set progressive legal precedents, and deter future misconduct. For instance, suing an employer for widespread discriminatory employment practices not only compensates affected workers but also sends a strong message to other employers about the consequences of discriminatory practices.

When these factors are present, class action lawsuits can be a powerful tool to secure justice and promote reform on a broader scale.

Historic Class Actions That Advanced Social Justice, Human Rights, and the Public Interest

Several notable U.S. Supreme Court rulings have stemmed from class action cases. The following precedent-setting cases are examples of class actions that have had a profound, lasting impact at all levels of American society.

Brown v. Board of Education of Topeka

This historic case, filed in 1951, challenged the legality of racial segregation in public schools. The class was composed of Black students who were denied entry to certain public schools because of their race. The Supreme Court’s 1954 decision declared that “separate educational facilities are inherently unequal,” effectively dismantling the legal basis for segregated schools across the United States. This ruling had a profound and lasting impact on civil rights. It set the stage for further desegregation efforts and advances in educational equality.

Roe v. Wade

Filed in 1970, this class action lawsuit was brought by “Jane Roe” (a pseudonym for Norma McCorvey) on behalf of women seeking access to safe and legal abortions. The 1973 Supreme Court decision recognized the constitutional right to terminate a pregnancy within the first trimester, making it unconstitutional for states to ban abortions outright.

This ruling transformed reproductive health laws in America. Even though it was overruled by a subsequent Supreme Court in 2022, Roe v. Wade remains a pivotal moment in the ongoing fight for women’s rights and bodily autonomy.

Anderson v. Pacific Gas & Electric Co. (Erin Brockovich Case)

In the early 1990s, residents of Hinkley, California, filed a class action lawsuit against a public utility company for environmental violations that led to serious health issues. The company knew that its wastewater was poisoning the ground water with toxic levels of hexavalent chromium but did nothing for years. Spearheaded by legal clerk Erin Brockovich and her employer, this case culminated in a $333 million settlement – the largest ever paid in a direct-action lawsuit at that time. The case raised awareness about corporate environmental responsibility and led to stricter regulations regarding industrial waste disposal.

Our Class Action Victories and Ongoing Investigations

At Sanford Heisler Sharp McKnight, our commitment to advancing the public good through socially conscious litigation is often accomplished through class action cases. We have obtained many victories in landmark class actions and maintain ongoing investigations into potential claims, including the following:

Novartis Gender Discrimination Class Action Lawsuit

In 2010, our attorneys represented a class of 5,600 female sales representatives employed by Novartis Pharmaceutical Company.  The lawsuit combined claims of gender and pregnancy discrimination with pay and promotion inequality, brought under the Civil Rights Act of 1964, Title VII, and state law. This large class action case went to trial, and in a unanimous jury verdict found the pharmaceutical giant liable and awarded the plaintiffs $253 million. This is the largest jury verdict in U.S. history in an employment discrimination case.

ERISA Class Action Lawsuit Against GE

In a class action lawsuit filed on behalf of employees, Sanford Heisler Sharp McKnight took on General Electric (GE), with claims that GE weighted its 401(k) retirement accounts with poorly performing mutual funds that benefitted the company’s General Electric Asset Management Incorp. division. This illegal self-dealing provided massive profits for GE while retirement plan participants lost millions of dollars. This case was settled in early 2024 for $61 million and is currently the largest settlement for an ERISA violation claim involving unlawful investment in a company’s proprietary funds.

Opioid Multidistrict Litigation Against Big Pharma

As part of the nationwide efforts to address the opioid epidemic, we filed lawsuits on behalf of 59 Virginia and West Virginia cities and counties against major pharmaceutical manufacturers, distributors, retail pharmacies, and pharmacy benefit managers (PBMs). These cases aim to hold Big Pharma accountable for its role in creating and profiting from the opioid crisis that has devastated communities across the country.

A Proud Legacy of Advocacy Through Class Action Claims

Our team of passionate attorneys and staff share a commitment to social justice, civil rights, diversity, inclusion, and accountability. Our goal is to create a positive impact not only in the lives of the individual clients we represent but also across society. Class actions form an integral part of our multifaceted approach to advancing that mission.

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