How does a class action work?
A class-action lawsuit is filed when different people combine their lawsuits because the facts of the case are so similar. This is designed to save court time, and allow one judge to hear all the cases at the same time and make one decision binding to all parties. Step 1: A lawyer files a lawsuit on behalf of one or more parties. Step 2: A judge agrees the case is valid and certifies it. Step 3: The judge directs notice be given to all parties having a similar claim during a particular time period so they may be informed and have input on the case. This first notice gives people an opportunity to “opt out” (not be part of the class or represented by the party who brought the case). Those who opt out have no further standing in the case and can either drop the matter or bring action on their own behalf. Individuals that stay a party in the case are usually bound by the settlement and prohibited from taking any further action on the matter. Step 4: Unless a settlement occurs, the case co
Related Questions
- With the GAO report, congressional hearings, the DOL 408 project and class action suits on revenue sharing with mutual funds, what advantage do ETFs have?
- Is formal action of the board of education required for student-funded programs such as yearbooks, class rings and gifts?
- What is a class action settlement?
