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What Is a Class Action Lawsuit?

What Is a Class Action Lawsuit?

Class action lawsuits are legal cases involving a large group of class members suing the defendant. The class members come together because they suffered similar harm due to the defendant’s negligence. The defendant in class action lawsuits is usually a large corporation or entity. Class actions provide a wide range of benefits for the class members. 

Advantages include strength in numbers and a smoother process to navigate. Class action lawsuits also relieve the court system from the burden of many similar cases to deal with at once. Some typical class action lawsuits include environmental harms and product liability. Pharmaceutical injuries, wrongful hiring, and other illegal business practices are also common.

  • In a class action lawsuit, one party represents the large group that sustained similar harm because of the negligence of the defendant.
  • After class action settlements, the attorney takes their fee and splits the award amongst all of the class members. 

Read further to learn more about class action lawsuits. The article includes examples of different types of class action lawsuit cases and other helpful information. 

What is a Class Action Lawsuit?

Class action lawsuits are a form of civil litigation. The actions involve a large group filing the suit together against the defendant. Usually, one party or a small group represents the large group. The defendants in class actions are often large organizations and corporations. The groups often band together because they don’t have the resources to file the claim alone. 

After proving the defendant’s liability, the settlement amount will depend on case specifics. The court will review the damages’ extent and other case details. Lawyers can help estimate the award in class action lawsuits with a personal injury settlement calculator. Other notable facts of class action lawsuits include:

  • Combining many injury claims into one claim for damages makes the civil court process faster and easier to navigate for all parties to the suit. 
  • According to Harvard Law School, the injuries can be financial or physical. Cases range from losing money to physical injuries from defective products or other liability cases. 

What Is an Example of a class action lawsuit cases?

One example of a class action lawsuit is a defective drug class action civil suit. The actions occur when a large group sustains adverse side effects and injuries after taking the same medication. The group sues the pharmaceutical company, manufacturer, or both, for compensation to cover the damages. One party from the group and one or more law firms represent the class. 

Attorneys often handle class action lawsuits on a contingency basis. They take their fee from the total award amount after settlement occurs. Attorneys representing a large group of class members need proficient legal contact management. The solution will help them keep all contacts in one easy-to-locate place. Some other examples of class action lawsuits include:

  • One example of a class action lawsuit litigation is a nursing home negligence case brought by a group who suffered abuse in a long-term care facility or their representatives 
  • Securities class actions lawsuits can be brought by investors because of improper conduct, including investor fraud or actions by board members.

What is the Difference Between a Civil Lawsuit and a Class Action Lawsuit Claims?

The significant difference between a civil lawsuit and a class action lawsuit is the number of people who bring the action. A class action comprises class members and legal representation suing the defendant(s). Most of the group is absent during the hearing, with one member or group representing their interests at trial. 

A civil lawsuit involves one party suing the other, and both are present during the civil case. Lawyers in all personal injury lawsuits require proficient tools and solutions. These days, legal professionals look for the best solutions for simple and reliable collaboration. CloudLex’s integration with Microsoft’s 365 for law firms, is a fantastic legal tool thatallows for easy drafting, management, and collaboration with others from anywhere. 

  • After injuries, the claimant(s) can choose to file a suit or class action against the defendant.
  • The court will award damages to the plaintiff in a lawsuit while they award money to a large group for class actions. 

What Tools Do Lawyers Use for Class Action Litigation?

The most successful lawyers use functional solutions to handle class action lawsuit cases effectively. The technology they use will depend on the size of the firm and the number of clients. Tools such as legal matter manager allow attorneys to store legal documents easily. They can collaborate with colleagues and sign documents electronically.

There is a vast range of benefits to filing a class action lawsuit. Yet, it may not be the best avenue for some. Individuals must review the differences between regular lawsuits and class action lawsuits. Researching will help determine the best option in their unique circumstances. An experienced legal professional can help determine which course of action is best.

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