A “class action” is a special type of lawsuit, in which numerous parties who could have sued separately (or could have been sued separately) are joined together in a single action. 

The parties could be joined into a class for the sake of efficiency, when the issues and evidence would be repetitious in multiple cases, and there are too many parties to have them all take part in the litigation.  Parties may also be joined to ensure that all class members can recover damages, when individual lawsuits might drain all the money available before all class members are compensated. 

There are specific rules for bringing a case as a class action, both in the federal court system and in the individual states.  Procedures for certifying a class, for designating class representatives, and for assigning class counsel vary from jurisdiction to jurisdiction. 

Class actions are usually filed for money damages.  Occasionally, they may demand injunctive relief, directing an entity to stop doing something harmful or unlawful.  Sometimes, they may demand a declaratory judgment, where a court simply defines the rights of the respective parties without taking any further action.

Class members do not usually join the class.  Rather, the court typically decides that a class exists, and members then are considered members unless they take action to opt out of the class.  One who opts out is no longer bound by the result of the case.  Class members who received proper notice (and other legal protections) and did not opt out of the case are bound by the result.

Lawyers for the class are generally paid out of the money ultimately recovered.  Class members do not pay the attorneys.  (In injunctive or declaratory judgment cases, the clients who originally hired the attorneys pay their fees.)  The attorney fees must be approved by the court.  Typically, in a money case, the fees are set as a percentage of the total amount awarded.

The court approves settlements, to ensure that there was no fraud or collusion between the parties or their attorneys, to ensure the fairness of the amount of the settlement (based on factors such as the strength of the case, the likelihood of trial, what litigation has been done thus far, the likely outcome of a trial, factors affecting the defendant’s ability to pay, and the like), and to ensure that the class has been fairly represented.

This is only intended to provide basic information about class actions.  If you have a question about this type of litigation, or have concerns about being affected by a class action lawsuit, then you should consult a lawyer of your choosing.  Class action notices are often printed in widely-circulated newspapers, such as the Wall Street Journal and USA Today.

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