Class Action Lawsuits Overview

Nothing generates a headline better, or captures the attention of the mass media more quickly than the news that a class action lawsuit has been filed somewhere, over something, because someone got hurt. In many newsrooms across the country, editors get excited whenever the phrase “class action lawsuit” pops up in the lead graph of a Page 1 news story, because such a story is moneymaker and a circulation driver. Such a lawsuit gathers interest like no other, for the simple fact that it seems big, bigger than life, and readymade for the nightly news broadcasts.

The reality is, though, that a class action lawsuit is a rather dismal affair that can both harm, and more surprisingly, help a given company or corporation that is facing litigation of some form of product mishap, accident or other corporate calamity. However, how is this possible?

Well, there are a few ways. First, it helps to know what, exactly, a class action lawsuit is, how it comes about, and then an examination of how it helps defendants can be made.

What a Class Action Lawsuit Is

First, it helps to know what a class action suit is. Basically, a class action suit is when a group of potential plaintiffs with a legal claim to damages from a particular incident or a particular way of doing business by a defendant – usually a corporation – comes together into a single lawsuit in order to focus all of the efforts of prosecuting a case into one process. It can be greatly beneficial to the plaintiffs, as each new plaintiff that comes on board brings with him or herself more evidence of wrongdoing or injury or whatever the case is alleging.

The more plaintiffs there are in a particular suit, the stronger the class action suit is. Thus, due to this fact, defendants are usually much more willing to enter into negotiations to settle class action suits out of court, because with each new plaintiff, it becomes less likely that a jury will find for the defense in the case. Lawsuit settlements are the typical result of class action suits for this fact alone.

How a Class Action Suit Comes To Be

A regular lawsuit becomes a class action lawsuit through a complicated process. The legal representation for the plaintiff, during the process of discovery, will take note of how widespread the case is. If there seems like there would be a large or significant number of potential plaintiffs for the case, the lawyer for the plaintiff requests from the presiding judge a motion to certify the case as a class action lawsuit. If the judge grants this motion, the case is then a class action lawsuit.

How a Class Action Suit Helps Defendants in the Case

In addition, while such a designation sometimes ends with the defense paying out a significant amount of money in compensatory damages, the designation of the case as a class action suit can actually be beneficial. This is because the defense will face most (usually all) potential litigants and plaintiffs in a single lawsuit, instead of being brought back into court time and time again by different plaintiffs over the same matter. When a class action suit is complete, often, the defendants are immune from further civil action in the matter.

About the Author:

Mike Goldman is the author of this article on Lawsuit settlements. Find more information about Accutane lawsuit settlements here.