MAIN Home Legal Guide Class Action Lawsuits

Often in the news for their sheer magnitude, class actions are lawsuits brought against a company by a large group of people.

Those who join a class action suit may number anywhere from the thousands to millions, depending on the product or service and cause of damage.

Class action law suits are usually filed for damages caused by companies overcharging or failing to provide services; sexual harrassment; job hiring or other forms of discrimination and defective products or those later found to be dangerous - such as tobacco, asbestos, medical devices or automobiles.

Suits are also frequently brought against securities companies, which may illegally lure investors to buy stocks or other investment properties that offer incentives to the broler or the firm. Customers are drawn in with promises of future growth, only to have stock prices tumble within a short period of time. If enough investors lose enough money, a class action lawsuits may force the firm to reimburse some of the losses.

If enough people are taken in by any type of illegal company activity, or become injured while using a shoddy, unhealthy or defective product, joining together in a class action suit may be the most cost-effective way of recouping their loses.

Pros & Cons of Class Actions

Proponents argue that suing through class actions can right many wrongs against people who could not otherwise afford to launch an individual lawsuit. The completion of a simple form, and a postage stamp, is usually the only cost of joining a class action suit.

Many movies showcase famous results of legal battles invokving large groups of people.

• Millions were paid out by California's Pacific Gas & Electric in 1993 to victims of toxic pollution and their families, a case later the subject of a Hollywood film, Erin Brockovich.
• North Country was based on the first major successful sexual harassment case in the United States -- Jenson vs. Eveleth Mines, where a woman filed and won the landmark 1984 lawsuit.
• A Civil Action is a 1998 film, starring John Travolta and Robert Duvall, based on the real-life case of Anderson v. Cryovac similar to the Erin Brockovich theme but based on events in Woburn, Massachusetts in the 1980s.

The results of class action lawsuits resolved on the movie screen may make it seem that the petitioners come away with enough of a settlement to justify the time it takes to go through the legal process. However, critics point to the ethical dilemma brought about by law firms who may help file the most frivolous class actions in the hope of receiving millions in legal fees - while in most cases claimants are left with pennies on the dollar.

Fifty million dollars may sound like a very big award, but if the class involved is 50,000 people, after cort costs and legal fees are deducted the people who suffered may receive a few hundred dollars each. One large company was sued for providing a product that was defective and paid the plaintiffs with discount coupons for products from the same company. If you agree to be part of a class action suit, normally you waive your rights to sue individually if you feel that the class action settlement is unfair. You must accept the compensation for damages that is agreed on between the company's lawyers and your lawyers.

Learning More About Class Action Lawsuits

Around the Web, find out more about other famous class action settlements, the latest news on law suits now underway, opinion on the moral implications of these legal cases, tips on participating in a class action suit (and when not to), with related information on consumer protection and product recalls ....

Legal News and Legal Help - Get the latest news on current and emerging U.S. class action suits with focus on the most talked-about personal injury and class actions nationwide, related news on product recalls and food warnings, free newsletter signup.

Stanford Law School Securities Class Action Clearinghouse - Comprehensive information on federal class action securities fraud litigation, with thousands of records on current and archived cases, recent filings and settlements, and a Top Ten list of the largest settlements.

FindLaw Class Action and Mass Tort Center - One-stop browsing for defective products associated with class action suits, with related resources including consumer protection laws, how to get help for a defective or dangerous product, and searchable database of class action case lawyers throughout the U.S.

Class Action Law - Online tutorial detailing what it is, how it works, when to participate and when to opt out of a lawsuit, plus more on securities-related cases and California class action law.

PointofLaw.com | Class Actions - A look at the negative aspects of class actions with more on specific suits, related links and suggested reading.

Class Action Lawsuits - Current Class Actions - Browse for recent news by industry including pharmaceuticals, tobacco, securities, technology, insurance and general miscellaneous.

A look at class action lawsuits - Good discussion on what makes a good case and when consumers should participate, including overviews of recent cases settled against hi-tech companies, from Ars Technica.com.

The information provided on these pages is intended as reference
only and does not constitute professional legal advice.