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Class Action Lawsuits: People
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Class action lawsuits are among the most effective tools consumers have to protect their power in the marketplace. When a large corporation does something that adversely affects a large group of people, a class action lawsuit enables all of the affected people to act with one voice.
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A "class action" lawsuit is one in which a group of people with the same or similar injuries caused by the same product or action sue the defendant as a group. Other names for lawsuits brought by a number of people who suffered similar harm or losses are "mass tort litigation" and "multi-district litigation" ("MDL"). People seek justice in class action lawsuits when their injuries have been caused by, among other things, defective products, including pharmaceutical drugs, motor vehicles and other consumer products, and medical devices. Other types of conduct over which people have sued as a class include consumer fraud, corporate misconduct, securities fraud, and employment practices. A type of class action lawsuit is the "mass tort" action. Mass tort litigation is a multi-party lawsuit based on a massive accident, such as an airplane crash, in which many people are injured or widespread personal injuries caused by a defective product, such as a medical device.
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Class action lawsuits are designed to help a large number of people receive compensation for losses they have all suffered as the result of common a circumstance. Many times, large corporations are responsible for the losses of many different people.
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Class actions arise when a company's actions harm a large group of people. Suits of this type have been brought against the manufacturers of products that cause injury, such as toys, defective products and tobacco. Harmful consumer business practices, such as overcharging for bank services or using misleading information to sell products, can lead to class actions as well. Shareholders of companies can ... use class actions to hold executives accountable for poor management or misleading investment information. Finally, employees can sue employers for discriminatory practices or violation of employment or benefits agreements.
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A "class action" is a civil suit brought by one or more people on behalf of themselves and others who are similarly situated. In other words, the others are in a substantially similar circumstance where the common issues are the most critical to the lawsuit. For example, if a large number of consumers is injured as a result of an allegedly defective product, the principal issue will be whether the product caused the injury. Some examples of class actions are those brought against the manufacturers of allegedly defective or hazardous products, such as asbestos, certain vaccines, Agent Orange, tobacco, and breast implants. Only then will the question of how badly each party was injured be heard.
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One of the most common types of class action lawsuits are against companies for worker related grievances. Another common class action lawsuit occurs when a product injures large numbers of people. Discrimination is ... another reason many class action suits are filed, when a segment of the population is denied something based on who they are.
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