What is a class action?

If you feel like you have been wronged by a company in a way that has likely affected others like you, and would like more information regarding class actions, please contact us for a free consultation.

A class action is an important legal tool that allows numerous small claims to be decided in a single case.  For instance, if a corporation has improperly taken $10 dollars from a million people, a class action allows one person who has been wronged to recover the entire $10,000,000 and distribute it out to the class members.  Who has the time to sue for $10?  Even though individual injuries in a case are small, a corporation shouldn’t be able to get away with unfair or unlawful conduct.  Class actions are a powerful enforcement tool to be sure corporations aren’t taking advantage of consumers.

The person who brings the class action is called a “named plaintiff.”  The named plaintiff helps attorneys gather information for the case and make decisions for the class.  While it is always up to a court’s discretion, the named plaintiff is typically compensated with an “enhancement” or “class representative incentive award” in addition to receiving his or her proportional share of the recovered money.  This is an extra payment to compensate the named plaintiff for participating in the lawsuit, to reward the named plaintiff for standing up for the rights of others and providing a public good, and to encourage future people to do this same.