When Should You File a Class-Action Lawsuit?

 

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A class-action lawsuit allows one or multiple individuals to represent a larger group who have suffered similar damages from the same entity or industry. Common triggers for these legal actions include faulty products, harmful substances, or corporate misbehavior, including investment scams and deceptive advertising. Before proceeding, a judge must validate the class, ensuring all claims are legitimate.

Differentiating Between Class-Action and Mass Tort

While both class-action lawsuits and mass torts involve collective legal actions, they differ in how the court perceives the plaintiffs. In class-action cases, the court views the group as a single entity, whereas, in mass torts, individual considerations are given more weight. In class actions, once the judge certifies the class, legal proceedings commence, whereas in mass torts, each plaintiff's situation is evaluated individually.

The Role of the Lead Plaintiff

The lead plaintiff serves as the liaison between the class and the court. This individual or entity consults with legal representation throughout the process and may significantly influence the case's outcome, as they're responsible for hiring the attorney.

Advantages and Disadvantages of Class-Action Lawsuits

Pros: Class-action lawsuits offer the benefit of collective strength against large corporations. Legal fees are shared, case backlogs are reduced, and claimants are freed from the intricacies of legal systems.

Cons: On the downside, these cases are time-consuming, and individual plaintiffs have limited input. The lead plaintiff's choice of an attorney can also impact the outcome for the entire class.

Class Action Fairness Act Explained

Enacted on February 18, 2005, the Class Action Fairness Act (CAFA) expanded federal jurisdiction over many class and mass actions. Under CAFA, federal courts can preside over class-action lawsuits when the total claims exceed $5 million, the class comprises 100 or more claimants, and at least one member is from a different state or country. The act applies to all class-action suits filed post-enactment.