Did you ever feel powerless to file a lawsuit against someone who had immense financial resources and influence? At the time, you probably felt that it was useless to sue someone so powerful. Unfortunately, thousands of individuals think the same and let the bully dictate its terms.
However, the Class Action lawsuit offers you the power to tilt the balance in your favor.
What is a Class Action Lawsuit?
It is a civil lawsuit brought on behalf of a group of individuals who are harmed by the same person or a business entity. In this scenario, a person from the group acts as a plaintiff representing everyone in the group.
The financial expenses are distributed among the entire group, which makes it easier to afford legal fees. In cases involving hundreds of individuals, the case filing expense may come out to only a couple of hundred dollars. Apart from financial reasons, a Class Action lawsuit also provides moral justification to fight against the more powerful offender.
For lawmakers, a Class Action lawsuit makes sense because it helps them hear a single case instead of giving a verdict on hundreds of similar cases. Overall, Class Action means one set of witnesses, experts, documents, and one law firm to handle everything.
Common Examples of Class Action Lawsuit
Investment Fraud: It is common for investors to file a Class Action lawsuit against the improper conduct of investment firms and companies listed on the NYSE and other financial marketplaces. Investors seek to recoup their capital, which is lost due to illegal practices of the company’s management.
Product Liability: Manufacturing and healthcare industries often face the brunt of Class Action lawsuits. Personal injuries due to a fault in car seat belts and other safety features cause such litigations. Health issues due to the lack of sufficient information by drug providers is another example that may force individuals to seek remuneration.
Avandia lawsuit is a good case study that can help understand Class Action litigation. In this case, the manufacturer, GlaxoSmithKline, is accused of hiding the higher risk of heart attacks caused by using Avandia. You can read more about it by clicking on the following link:
https://www.yourlawyer.com/defective-drugs/avandia/avandia/
Consumer: Price-fixing, monopoly, pyramid marketing schemes, and sharing of information with third parties often result in a variety of legal actions by a group of individuals.
Employment: Discrimination in the workplace, wage issues, and workplace injuries also constitute a large percentage of Class Action litigation. The social bonding and close relationship among employees of a company make it easier for workers to seek justification from their employer.
Benefits of Class Action Lawsuit
Most individuals shy away from pursuing a legal claim due to high costs and the lack of confidence in their ability to confront a stronger opponent. In contrast, when people work together to achieve a goal, it eases the financial burden and gives them the support to tackle much bigger problems.
Think of a Class Action lawsuit as your chance to seek justice using the power of the crowd. Here is how you can benefit:
- Lower Cost of Litigation: A Class Action lawsuit is easy on your pockets. Instead of bearing the entire cost of a lawsuit, the final cost of the litigation may come only to a few hundred dollars for a large group. Considering the amount of compensation you may receive, it is often a win-win situation.Furthermore, it is not unusual for the plaintiff to pay a contingency fee. The contingency fee ensures that you only pay the litigation expense if the decision is in your favor.
- Moral Justification: Class Action lawsuits are not always about compensation. Consumer groups and human rights advocates use this method to seek justice from a corporate world bent on making money at the expense of others.You might have felt the injustice yourself when paying the exorbitant amount of fees to a private utility company. Hidden fees and extra charges are some of the most common methods used to extract money from consumers. Most consumers don’t have a choice. They either pay the company or seek another service provider. Fighting such injustice gives a strong incentive to consumers to file a Class Action lawsuit.
- Expert Assistance: It makes sense to compare a Class Action lawsuit with a game of chess where every move counts. A single mistake can wipe all your gains in an instant. In most cases, paying the fee of well-known reputable lawyers is out of reach of most individuals. Therefore, many litigations fail because of the inexperienced team.A Class Action lawsuit is a solution to the problem as it allows a plaintiff to split the cost of hiring a reputable law firm and pay their fee. Expert lawyers are not only adept at unraveling the puzzle but are also respected by judges.
- Higher Likelihood of Financial Recovery: Both medium-sized and large businesses are insured, which means that their insurance company covers a substantial expense of any financial damage caused due to litigation. If you were to file a separate case against a company, the company might not have enough assets or insurance benefits left to pay you.In this scenario, the plaintiff will not get anything even if they win the case. This is because the company may have already paid other individuals seeking such claims.
A Class Action lawsuit increases your chances of getting a financial recovery because all claims are filed at once. You’re not worried that early plaintiffs have a higher likelihood of getting claims. Irrespective of the amount of compensation, most people will feel comfortable that the reward will be split evenly among everyone.
How to File a Class Action Lawsuit?
For a Class Action to succeed, it is important to hire an experienced law firm that has the necessary resources to deal with such cases. Their record should suggest that the firm can handle cases filed by a very large number of individuals.
While you can certainly file your own case or find another person to file jointly, the power of Class Action lawsuits is derived from a group. Depending on the circumstances, your lawyer will prepare a case for a mass tort or proceed with a Class Action litigation.
