Class Action Suit

A class action suit is a lawsuit against a company by multiple plaintiffs who were similarly injured by the defendant. Class actions are especially good for people who individually have only sustained less than a few thousand dollars of damage. The cost of an individual suit would negate the possible recovery if they were even to win, but in a class action suit, the cost of filing and paying lawyer fees is split between all the plaintiffs. Also, they gain strength in numbers and have a more air-tight case to bring to court. Thus class action suits are often a better assurance that a satisfactory settlement will be reached.

However the benefits of class action suits are in heavy debate. One topic people focus on is a coupon settlement in which plaintiffs are given coupons to be used within a certain time and with the company they filed suit against. This can be seen either as a promotion benefiting only the company in the wrong, but if this coupon settlement could be used on a better product, gives enough of a benefit to cover the money initially lost, doesn’t expire immediately and can be transferable, then it can be a reasonable settlement. Nontangible settlements are also thought to be unfair settlements because the plaintiffs are left with defective products and are forced to pay exorbitant lawyer fees. However in some cases such as pollution cases, injunctions provided for by nontangible settlements are beneficial because they stop damages and improve health.

If you have any questions about class action lawsuits, please contact a class action lawyer right away.

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