In 2011, the U.S. Supreme Court heard the case Wal-Mart Stores, Inc. v. Dukes, where a group of female employees sued Wal-Mart. They claimed the company was unfairly discriminating against women in pay and promotions. This is a real-life example of a class action lawsuit. It does sound complicated to sue such a large company, and you might wonder how it is even possible. Let’s find out.
What is Class Action Lawsuit
A class action lawsuit is a legal case in which one or more people sue on behalf of a larger group who have all been affected in the same way by the defendant’s actions. It lets people with similar complaints, usually against big companies, work together to seek justice and compensation, which is faster than filing separate lawsuits. For example, in 2010, after the Deepwater Horizon disaster, a class action was filed against BP. This incident resulted in a $20 billion settlement to compensate people and businesses affected by the oil spill.
Handling a Class Action Lawsuit
Starting a class action lawsuit involves several key steps, from filing the case to resolving it. Following is how each step of the process works:
- Initial Consultation and Case Evaluation
Before moving forward, anyone considering a class action should meet with a lawyer who specializes in these types of cases. The lawyer will assess whether the case has enough merit for a class action, identify other potential victims who might join the lawsuit, and explain the relevant laws that could impact the case.
- Filing the Complaint
Once the decision to proceed is made, the next step is to file a formal complaint with the court. This document will list the plaintiffs (the people bringing the case) and the defendants (the party being sued). It will also define the group of people affected by the issue, explain the facts supporting the claims, and outline which laws were violated by the defendant.
- Motion to Dismiss
After the complaint is filed, the defendants may try to have the case dismissed by arguing that the claims are not valid. The court will review this request, and if the motion is denied, the case will move forward to the next stage, called discovery.
- Discovery Phase
Discovery is the stage where both sides gather evidence to support their case. This can include exchanging documents, answering written questions under oath, and taking depositions (sworn testimonies). This process can take a long time, sometimes months or even years, depending on the complexity of the case.
- Motion for Class Certification
Once discovery is complete, the plaintiffs file a motion asking the court to officially recognize the class action. To do this, they must show that the group is large enough to justify a class action, that the issues are common to all members, that the representative plaintiff’s claims are typical of the group, and that the plaintiffs and their lawyers can fairly represent everyone in the class.
- Notification of Class Members
If the court certifies the class, potential class members must be notified about the lawsuit. This is usually done through written notices sent by mail, posted in newspapers, or shared online. The notices will explain the lawsuit, the rights of class members, and how they can choose to join or leave the case.
- Opting In or Out
Class members usually have the option to either join the case (opt-in) if they feel they have been affected or to leave the case (opt-out) if they want to pursue their claim.
- Settlement Negotiations
Most class action lawsuits settle out of court. During settlement negotiations, the plaintiffs’ lawyers will work with the defendants to reach an agreement compensating those affected. The court must approve the terms before any settlement can be finalized to ensure fairness.
- Final Fairness Hearing
If a settlement is reached, the court holds a final fairness hearing. This gives class members a chance to raise any objections or show their support for the settlement. The court will then decide whether the settlement is fair and reasonable for all those involved.
- Distribution of Settlement Funds
Once the court approves the settlement, the money is distributed to class members according to the terms agreed upon. This process might require class members to file claims to receive their share, and the court will oversee the distribution to make sure it’s done fairly.
- Post-Settlement Considerations
After the settlement funds are distributed, any remaining unclaimed money may go back to the defendants or be used for other purposes as decided by the court. In some cases, class members might be able to seek further legal action if they feel their rights weren’t properly addressed.
Wrapping Up
If you want to learn more about joining class action lawsuits and your rights as a consumer, it’s a good idea to consult a class action lawyer. They can answer your questions and help with consumer protection concerns.
If you need legal help, the team at Jonathan Lee Borsuk PC can assist you. We’ll carefully review your case and offer personalized solutions. If you need help with a motion for summary judgment, call us at (424) 293-8100.
Please note that this blog is for general informational purposes only and does not constitute the rendering of any legal advice. Please do not rely upon anything in this blog in your dealings, transactions, or businesses. No attorney-client relationship is created or offered by this blog. Thank you. We wish you a pleasant week and a victorious year.
