Class Action Litigation

Definition of class action litigation

Class action litigation is a legal process used to effectively handle lawsuits that involve a great number of people injured or suffered losses because of a common act. In addition Class action litigation is a necessary procedure to protect the public from unethical and improper business practices. In a class action it is important that the claimants have common issues that will bind and make the case stronger. This class action can be filed against the one or more defendant.

Just like in any legal proceedings, there are some steps provided by law for class action proceedings.

  • The first thing that must be done is to draft and file a complaint in court against the defendant. The complaint will be served to the defendant and the defendant will usually file an answer that denies the charge.

  • After this comes the discovery phase in which the two parties will have the chance to interrogate each other and demand documents relevant to the case. If the defendant wins, some or all of the plaintiffs claims may be rejected, but if the plaintiffs win, the case proceeds will be certified.

  • The members of the class will be notified and they will be given the chance to opt out of the class since the outcome of the class action litigation will be binding one.

The usual rate percent reward

Once the class action litigation is concluded and both parties agree on a settlement, the attorney fees for class action litigation are usually taken out of the money recovered during the settlement. A typical rate of 25 percent of the reward is usually charged, but it may be higher depending on the court.

The law prefers that class action suits be settled out of court prior to entering litigation. The fees accumulated during class action litigations are often great, while the compensatory reward for the plaintiffs is less than significant, due to the large number of individuals that may make up a class.


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