Class Action Lawsuit Tips – What are my options?

Class Action Lawsuits

We hear the term Class Action Lawsuits on the news and in TV shows, but what are they really? How can I be included and what are my options? 

A “Class Action” lawsuit grants legal recourse to large groups of workers or consumers who have been injured by a company’s actions or by its faulty products.

The act of suing a large company for damages entails massive expenses for the plaintiff and his attorney, making it impossible for most individual victims to pursue their claims in court. To meet the financial burdens of this type of litigation, a “class” of persons certified by the judge presents a civil action against the offending company. The judge will indicate the scope of the class.

For example, anyone who purchased a certain defective crib between 2005 and 2007 might be included in a civil suit against the crib manufacturer found liable for the defect. If you fall within the class, you will be notified by the court. The class will be represented by a lead plaintiff, who sometimes receives a larger portion of the settlement, but all members of the class, without having to participate in the actual court case, usually end up with some money if the matter reaches a favorable resolution. To accommodate the number of plaintiffs, class action attorneys seek very large sums in damages, sometimes up to the millions and billions of dollars. The successful attorney will receive a percentage of the financial award to the victims, but receives no fee if they lose the case.

You can opt out of a classaction if, in your opinion, you are entitled to a larger sum in compensation. The division of the financial reward over vast numbers of claimants means that an individual plaintiff in a class action will likely receive only a very small percentage of the total. If you believe your injuries are worthy of a large payout, then you can retain your right to sue the company on your own, but then, of course, you will be responsible for your own attorney fees. Some class action suits that have made headlines in recent years include:

Summer York vs. Starbucks Corp. (2013): Summer York, a barista at Starbucks, sued the company along with many others in the class, for denying required lunch breaks and issuing inaccurate wage statements. The plaintiffs received a 3-million dollar settlement from the company.

Lane vs. Facebook, Inc. (2010): Sean Lane sued Facebook for employing a hard-to-opt-out-of program called Beacon which displayed private information to all Facebook users. Lane as lead plaintiff received a financial reward, but other Facebook users were denied compensation. Facebook agreed to establish a $9.5 million privacy foundation and abolish Beacon.

Sheila Brownvs. American Home Products Corp. (2000): In 1997, The FDA removed the diet drug Fen-Phen from the market after it was shown to contribute to heart-valve disease and pulmonary hyper-tension. The drug company settled for 3.75 billion dollars.

Most recently, The IRS scandal has prompted various Tea Party organizations to threaten a class action suit against the revenue agency for applying inappropriate and excessive scrutiny to their tax-exempt status. Also, Apple is facing another class action lawsuit in relation to the IPhone 4.

To find a class action attorney, you should consult with your family attorney who may be aware of individuals in your area who specialize in class action lawsuits. Frequently, referrals from attorneys to class action attorneys will also improve your chances of having your claim accepted by the class action attorney. Research successful class action cases and contact attorneys with a proven record. You will also want to make sure that your class action attorney has enough money to finance the case; don’t go with an attorney struggling to make ends meet!

Articles contained here are not intended to provide legal advice, only providing general information. We encourage individuals to consult with an attorney regarding individual circumstances.