How to start a class action lawsuit? Quick Answer
- To start a class action lawsuit, you must discuss your concerns with a lawyer. If you have a strong case, the lawyer might start a class action suit with you as the lead plaintiff.
Summary
- Class action lawsuits let multiple plaintiffs sue the same defendant
- If you have grounds for a case, you should consult an attorney
- A lawyer may file the initial complaint and start the lawsuit process
A class action lawsuit can be a powerful tool for helping a large group of individuals who have been harmed by a company, organization, or other entity. It allows an individual or small group to seek justice and compensation for a much larger pool of victims. This guide will help you understand the basics of these types of cases and how to start a class action lawsuit.
How Many People Do You Need for A Class Action Lawsuit?
A class action lawsuit can be appropriate when a common legal violation affects a large group of people. Common claims involve defective products, misleading advertisements, harmful pharmaceuticals, public health hazards, and employment discrimination. Everyone in the group must have suffered similar harm or injury.
Although there is no set minimum, the proposed class must have a number of victims large enough to warrant consolidating the claims into one action.
Minimum Requirements for Class Action Lawsuits
Federal Rule of Civil Procedure 23(a) sets out the four requirements for class certification. In addition to showing that many people have suffered similar harm, the proposed plaintiffs or a lead plaintiff, such as Nicholas C. Smith-Washington in the TaxAct lawsuit, must show that their claims represent everyone else's and that their lawyers have the skill, ability, experience, and resources to represent the class fairly.
Examples of Common Issues in Class Action Lawsuits
- Defective Products. If a manufacturer sells a product that is unsafe or does not perform as advertised, individuals who suffer injuries or economic loss may be able to bring a class action product liability lawsuit. Examples include dangerous drugs like fentanyl, medical devices, consumer products, and vehicles.
- Threats to Public Health. Manufacturers of pesticides and other chemicals that contaminate water, like RoundUp and other glyphosate products, often face class action lawsuits for product liability and endangering public health.
- Consumer Fraud. Misleading or false advertising, such as in Simply Orange case, hidden fees, or other deceptive business practices that impact many consumers can lead to a class action.
- Illegal Employment Practices. Businesses can face class action claims from large groups of workers alleging systematic discrimination, wage and hour violations, or unsafe working conditions.
Why Do People File Class Action Lawsuits?
If you get hurt in a rear-end collision because the other driver was looking at their phone, you might be able to file a lawsuit to recover damages. In this case, you were the only person hurt by the negligent driver.
But what if the same defendant causes harm to hundreds—or even thousands—of other people? When this happens, a class action lawsuit is often beneficial for all parties because:
- It avoids overloading the court system.
- People with too few damages to file a lawsuit on their own can still receive compensation.
- Seeing the number of plaintiffs might incentivize the defendant to settle.
To pursue a class action lawsuit, plaintiffs must have suffered similar injuries. For example, if a company makes defective products that spontaneously catch on fire, injured customers could collectively seek compensation.
How to Start a Class Action Lawsuit Against a Company
A class representative (or lead plaintiff) represents the interests of the entire class. Class representatives should have claims typical of the class and be willing to actively participate in the litigation of the case. Usually, a few class representatives are named in a lawsuit in case one or more becomes unable to proceed or the court dismisses their claims.
If you believe you have grounds for a class action case, you should gather as much evidence as possible before consulting an attorney. Compile receipts, contracts, warranties, emails, advertisements, pictures, medical records and other relevant documents. Compile the contact information for others who have experienced the same issue and any statements they have made.
Class action lawsuits are complex and require specialized legal expertise. Hiring an attorney or law firm experienced in handling class actions is essential. Many class action attorneys work on a contingency fee basis, taking a portion of any settlement or verdict as payment for their fees rather than charging an hourly rate.
How to File a Class Action Lawsuit
The first step toward filing a class action lawsuit is consulting with an attorney. If your attorney thinks a class action lawsuit is the best way forward, you and your lawyer can then take the following steps:
- File the complaint in state or federal court.
- Determine the criteria for who can be included.
- Petition the court to certify the case as a class action lawsuit.
- If the defendant objects, attend a class certification hearing.
- If the class is certified, notify members of the class.
- Continue to recruit and enroll class members.
- Attempt to negotiate a settlement with the defendant.
- Attend a hearing for the court to approve the settlement.
If the settlement is approved, the court will oversee the distribution of the payout. Most class action cases settle, but in the unlikely event that yours does not, the case may be decided in a trial.
Does It Cost Anything to Start a Class Action Lawsuit?
Usually, it doesn’t cost anything to start a class action lawsuit. Most class action lawyers work on contingency, so you pay nothing up front. If your case is successful, the lawyer receives a portion of the total compensation recovered.
Resolving a Class Action Lawsuit
During the discovery phase of a class action lawsuit, the parties exchange information and gather evidence. This process can include depositions (interviews under oath), interrogatories, requests for documents and more. The process allows both parties to build their cases and prepare for trial or settlement negotiations.
Most class action lawsuits are resolved through settlements, which can provide quicker resolutions and guaranteed compensation for class members. The court must approve any proposed settlement to ensure it is fair and reasonable. If the case goes to trial, the plaintiffs must prove their claims before a judge or jury.
A settlement or verdict binds all class members, whether or not they knew of or participated in the lawsuit. Compensation is divided and distributed to all identified class members once the plaintiff recovers the proceeds from a settlement or verdict.
How Do I Find an Attorney for a Class Action Lawsuit?
For a successful class action lawsuit, you need a strong legal claim and an experienced attorney. If you’re not sure how to find the right lawyer, we can help. Fill out our contact form below to start getting matched with attorneys in your area.
