Class Actions
A class action is a specific kind of lawsuit which is filed on behalf of a group of people who claim injury from the actions of a particular company. In a class action lawsuit, the claims of many persons—which are defined as having a common, but not identical interest—are determined in a single court proceeding instituted by a representative plaintiff.
Class action lawsuits are often filed by members of a company who feel aggrieved by illegal hiring or salary practices. Another common class action lawsuit scenario involves a suit filed against a pharmaceutical company that has made illegal claims about their products or whose product has resulted in death or physical injury to victims who consumed it. Moreover, there are other categories such as price-fixing class actions, consumer protection class actions; product liability claims, pension-related claims, securities-related claims and environmental class actions.
Spotlight on Class Actions
Are Class Action Settlements Taxable?
When it comes to the taxability of class action settlements, there are a few clear-cut laws that help define when and how much of the proceeds are taxable. If you have received a settlement in the form of a check or shares, read on to find out about how taxes are paid, though for many specific qu... Continue Reading »
Are Class Action Settlements Taxable?
When it comes to the taxability of class action settlements, there are a few clear-cut laws that help define when and how much of the proceeds are taxable. If you have received a settlement in the form ...
How to Join a Class Action Lawsuit
In a class action lawsuit, the claims of multiple persons with a common interest are brought to court by one plaintiff representative and decided in one proceeding. There are benefits to joining a class...
About Class Actions
When an individual decides to join a class action lawsuit, they are normally required to sign documents declaring their forfeiture of the right to sue the company in question as an individual. Some of the benefits of joining a class action lawsuit include the fact that they eliminate the necessity for hundreds or even thousands of people or groups having to file similar lawsuits as individuals. Moreover, class action suits help in the elimination of common barriers such as economic barriers which may hinder individuals or groups from the pursuance of litigation. Class action lawsuits also aim to ensure that persons or groups with similar legal claims are treated equally.
Parties to a class action lawsuit include the plaintiffs who are the group of individuals suing the company, and the defendant who is the company being sued. In a successful class action suit, plaintiffs will be awarded damages according to the greatest damage. You will find that in most class action suits, individuals are not entitled to equal amounts of compensation.
A class action lawsuit may go to trial or may be settled before it reaches the trial stage. A settlement in a class action lawsuit means that the defendants have agreed to the damages demanded by the plaintiffs. In the event that a class action suit goes to appeal, this would mean that the plaintiffs would have to wait for a very long time before they receive any money, seeing as the appeal process may go on for years. You may also find a situation whereby the defendant company declares bankruptcy which will result in the plaintiffs not receiving any compensation whatsoever.