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Class Action Lawsuit

Definition - What does Class Action Lawsuit mean?

A class action lawsuit is a phrase commonly used to refer to class action. It is where one or more individuals sue a wrongdoer(s) on behalf of a larger group of individuals. The whole group is collectively called a class. Federal Rules of Civil Procedure Rule 23 and 28 U.S.C.A. § 1332(d) govern class actions in United States federal courts.

Justipedia explains Class Action Lawsuit

When a group of people (plaintiffs) are the victims of a wrongful act committed by an individual or entity (defendant), the procedural device called "class action" allows them to file and prosecute a lawsuit collectively. Such lawsuits are commonly referred to as class action lawsuits. However, class action in itself means a lawsuit filed by an individual or group on behalf of a larger group, making the term class action lawsuit redundant.

Generally, class action is filed in torts like product liability or mergers and acquisition cases, where the action by a company or individual resulted in damages to several people (or entities). Class actions are mostly found in the U.S. legal system. To file a class action, two criteria must be present in the case regardless of the subject matter: The disputed issue must be common to all class members, and the number of individuals affected must be significant, so as to make it impractical to bring individual cases before a court of law.

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