Lead Plaintiff (Named Plaintiff, Class Representative)

A lead plaintiff, also called a named plaintiff or class representative, is a person whose name appears on a class action complaint and who stands in for all the absent class members. Their claims must reflect the class's claims. Federal Rule of Civil Procedure 23(a) requires that the representative parties' claims be typical of the class and that they fairly and adequately protect the interests of the class. Courts look for conflicts of interest and whether the person understands the case and will stay involved.

Class representatives take on real duties. They may need to preserve documents, answer written questions, sit for a deposition, and approve or reject a settlement. They are bound by the result like everyone else. In return, courts in most federal circuits allow a modest service or incentive award from the settlement to compensate them for their time, subject to the judge's approval.

In securities fraud class actions, "lead plaintiff" has a specific legal meaning. Under the Private Securities Litigation Reform Act, 15 U.S.C. 78u-4(a)(3), the court presumes the most adequate plaintiff is the person or group with the largest financial interest in the relief sought who has filed the complaint or moved in response to the published notice and satisfies Rule 23. Motions to be appointed must be considered within 90 days after notice of the case is published. This is why institutional investors such as pension funds often lead securities cases.

Most people are absent class members and never need to do any of this. See how to start a class action, whether you will have to testify, and the incentive award entry.