How To Start A Class Action Lawsuit: 2024 Guide

A class action lawsuit is a large lawsuit filed against a defendant on behalf of a big group of plaintiffs. The plaintiffs who make up the class must have all suffered some similar damages that the defendant is allegedly responsible for causing.

Class actions can be brought in state or federal court, and they are allowed only in civil cases where plaintiffs seek monetary remedies.

In a class action lawsuit, one or more named plaintiffs represent a large group. The named plaintiffs file the case and are actively involved in legal proceedings. A much larger group of unnamed plaintiffs have shared legal claims with the named plaintiffs. They can choose to be a part of the class and have their claims resolved by it, or they can choose to opt out and pursue their own lawsuits for the wrongs committed against them.

The court must certify a class action lawsuit, which means the court determines that all of the unnamed plaintiffs share a common claim with the named plaintiffs, that there is a large group of potential plaintiffs and that the named plaintiffs have claims that are representative of the entire class. The named plaintiffs work with the attorneys representing the class to present evidence to the court presiding over the claim.

In many cases, a defendant will settle after a class action lawsuit is filed. This means the defendant will offer some type of legal remedy that will be available to all class members. If the case proceeds to court instead of settling, the court will make a decision on the outcome that applies to all class members.

Class actions can be brought in federal court or state court. State court rules can differ. Federal requirements are set forth in Rule 23 of the Federal Rules of Civil Procedure. There are certain express and implied requirements under Rule 23. Each of the following are required for a class action lawsuit under Rule 23.

An Actual Controversy or Dispute Under the Law

The named plaintiffs must have an actual legal case, or grounds under the law, to move forward with forming a class and pursuing a claim for damages. The question of fact or law must be common to all members of the class.

Objective Criteria to Define the Class of Plaintiffs

It must be easy and clear to determine who exactly can be a member of the class of unnamed plaintiffs whose cases will be resolved in the class action lawsuit. Sometimes, this is referred to as “ascertainability,” because the court must be able to ascertain or determine who is part of the class of plaintiffs.

Numerosity

This means there must be multiple people who have all allegedly suffered from the same legal wrongdoing and who all have the shared right to pursue a claim together. Generally, the minimum number of people required to have a shared claim is 40 in order for a case to qualify for a class action. However, many class actions have far larger numbers of potential unnamed plaintiffs.

Commonality

There must be common questions involved in the legal dispute that the court can come up with an answer to.

Typicality

The named plaintiffs must be typical of (or good representatives of) all of the unnamed plaintiffs whose claims can potentially be resolved by the class action.

Adequacy of Representation

Named class members must not have any conflicts of interest with other potential members of the class and the lawyers representing all of the class members must have appropriate experience with similar large-scale legal claims.

In general, anyone who has suffered a legal wrong and who believes others have suffered a similar wrong can start a class action lawsuit. Usually, the best first step is to find a class action attorney who can provide assistance with this process.

A person who wants to start a class action as a named plaintiff can get the process underway by filing a complaint with the appropriate court. The court must have sufficient connections to the claim to have jurisdiction over it, and the complaint must state the facts, including the legal grounds for the claim.

If the court determines that the requirements for a class action are met, the court can certify the class action. Others who have potentially experienced a similar type of harm to the named plaintiffs may be invited to join the class as unnamed plaintiffs.

No one is required to join a class action, even if they are eligible to do so. They can opt out and choose to pursue their own individual lawsuit.

It is important to determine if there are agreements in place that prevent litigating disputes in a class action. For example, some service providers such as cell phone companies may require customers to waive their rights to participate in class action lawsuits arising out of problems that occur during their business relationship with the provider.

Class action lawsuits are common in situations where many people may experience similar damage as a result of wrongful or negligent actions that impacted all of them. Common examples of class action cases include:

• Securities class actions: Investors who are damaged by improper conduct on the part of companies or board members can come together to sue.
• Employment class actions: Workers who have been discriminated against or whose employers have violated wage and hour laws can pursue class actions against large companies
• Consumer class actions: Consumers can bring claims for false advertising, defective products, antitrust violations or consumer fraud
• Breach of contract: If large companies make promises in writing and fail to fulfill them to large numbers of people, this can result in a class action based on breach of contract

An experienced attorney can provide insight into whether a particular situation could give rise to a class action.

Class actions have many benefits:

• They allow groups of plaintiffs to recover compensation for small wrongs. For example, if a company that made a $25 product lied in its advertising, it likely wouldn’t make sense for each person who bought it to sue when they’d only be able to recover $25. But it does make sense for a huge group of plaintiffs to all come together as a class to recover compensation and hold the company accountable for misleading consumers.
• They make handling claims more efficient. The court doesn’t have to hear dozens or hundreds of cases involving the same issues
• They reduce costs. Each individual plaintiff does not have to incur legal expenses associated with a lawsuit
• They simplify the recovery process. Unnamed plaintiffs usually don’t need to do much, if anything, to be part of the class and potentially obtain a remedy

However, there are also some downsides. Most notably, unnamed plaintiffs have no control over the outcome of the case and the remedies available to them may not be substantial.

Class action claims are very complicated. If you are wondering how to start a class action lawsuit, you should consult with an attorney experienced in these types of claims as your first step in the process of getting your case underway.