What is a class action?

A class action is a lawsuit brought on behalf of a large group of people who have similar legal claims against the same defendant or defendants. In a class action, an individual or entity stands before the court to represent the entire group of people with such similar claims. This person is referred to as the "class representative." This procedure allows the Court to resolve hundreds or thousands of claims simultaneously and provides a mechanism for litigating relatively small claims that, standing alone, would not be economically feasible to litigate individually.

Common examples of class actions are securities investment scams where a company makes uniform and widely broadcast statements about itself which later turn out to be false or misleading. In such a case, everyone who bought the company's securities between the time such statements were made and the truth is discovered would have similar claims against the company for artificially inflating the value of the securities they purchased. Other examples include uniformly defective products and deceptive marketing or sales practices.

Although many cases are filed as class actions, they may not proceed as such until a judge approves the case for class action status. When a class is certified, the court will order that "the best notice practicable" be given to members of the class who can be identified. In some class actions, members of the class are given the right to opt out of the action and pursue their own claims if they wish.