Legal & IP
Definition
A class action is a lawsuit in which a group of people with substantially similar legal claims sues a defendant collectively. One or more named plaintiffs represent the entire class. Class actions are common in consumer fraud, securities fraud, employment discrimination, and product liability cases where individual damages are too small to justify individual lawsuits.
For a class action to proceed, a court must certify the class — finding that: (1) the class is sufficiently numerous; (2) there are common legal questions; (3) the named plaintiffs' claims are typical of the class; and (4) the named plaintiffs can adequately represent the class. Federal class actions are governed by Rule 23 of the Federal Rules of Civil Procedure. Once certified, class members typically receive notice and can opt out (in damages cases). Settlement requires court approval to protect absent class members. Plaintiffs' attorneys work on contingency — taking 25–33% of any recovery. Class actions create leverage for plaintiffs whose individual claims are too small to litigate but collectively represent large sums. Defendants face settlement pressure because the combined exposure can be existential even with a strong defense.
If your business faces a class action — or if you believe you are a victim of widespread misconduct — the dynamics are fundamentally different from individual litigation. An attorney experienced in class action defense or prosecution can assess certification risk, evaluate settlement value, and navigate the procedural complexity that makes these cases distinctive.