Class Action Lawsuit

A class action lawsuit lets one or more people, called class representatives or lead plaintiffs, sue on behalf of everyone who was harmed in the same way. Instead of thousands of people filing separate cases over a $20 overcharge or the same data breach, one case decides the common questions for the whole group. In federal court, class actions are governed by Federal Rule of Civil Procedure 23.

The key features are that most class members never file anything or appear in court, and they are bound by the result. Under Rule 23(a), a case can proceed as a class action only if the group is so numerous that joining everyone is impracticable, there are common questions of law or fact, the representatives' claims are typical, and the representatives will fairly protect the class. A judge must approve class certification, and any settlement must receive court approval after a fairness hearing.

When a class action settles, class members usually submit a claim form to get paid, and they can opt out to keep the right to sue on their own. Payouts are often modest per person because the total fund is divided among many claimants, after attorney fees and costs are approved by the court.

Class actions differ from mass torts, where each injured person files an individual case, often grouped for pretrial purposes. Read what a class action lawsuit is, how to join one, and browse the open settlements list.