Last Updated on July 29, 2024 by Surender Kumar
Class action lawsuits are one of the strongest legal vehicles available in the current justice system. It can quite literally bring an erring company to its knees, resulting in a huge settlement for everyone affected in the process. However, not all cases end up having the potential for a class action.
In fact, there are certain criteria that dictate whether a case is suited for a class action or a typical legal proceeding. Not all cases can be class actions, and not all class actions can be effective as an individual case! Deciding if a case has the potential to become an effective class action rests on the shoulders of effective lawyers.
When you work with an expert class action lawyer, you’re sure to receive keen insight into how a case is evaluated for its approach. Largely, your lawyer is attempting to check if the benefits of a high-risk high-reward class action and success rates outweigh all the possible cons.
This cost benefit analysis serves to protect the interests of you, the class, and the impact of the lawsuit. When a lawyer identifies potential for a class action lawsuit, they must also identify other individuals affected by the same problem or erring party.
This process ensures that only the cases that are most effective as class action, become class actions. While class-actions have the potential for high settlements and compensations, they incur a high cost to all parties involved, from the plaintiffs and lawyers to the justice system as a whole.
Class actions can and have historically continued for years! Evaluating cases for their worth as class actions is thus quite essential. Here are some of the stringent criteria under consideration…
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Strength in Numbers
One of the primary reasons for filing a class action lawsuit is the strength in numbers. When a large group of people have been similarly affected by a defendant’s actions, combining their cases into a single lawsuit amplifies their voices.
This also draws significant attention from other parties, such as the media and associated members. Additionally, it can encourage even more wronged individuals to join the class, bringing in new evidence! This way, a class action keeps getting stronger and stronger.
Levelling the Playing Field
Class action lawsuits help level the playing field between individual plaintiffs and powerful corporations. Large companies often have substantial resources and legal teams dedicated to defending against lawsuits.
Individual plaintiffs, especially those with limited financial means, might struggle to mount a comparable legal challenge. The typical lawyer representing large corporations is given the directive to swiftly and effectively handle any legal trouble coming towards the company and brand. A massive class action forces them to evaluate the evidence, and thus acknowledge that actual wrong-doing has occurred!
Addressing Systemic Issues
Class actions are particularly suited for addressing systemic issues that affect large groups of people. These can include defective products, environmental hazards, discriminatory practices, or unfair business practices.
When these issues impact numerous individuals similarly, a class action lawsuit can address the root cause of the problem more effectively than individual lawsuits.
Deterring Corporate Misconduct
Class action lawsuits serve as a deterrent against corporate misconduct. Certain large corporations may see themselves as invincible. Or they might even start seeing themselves as monopolies in the market. This prompts them to behave in an anti-consumer manner – providing products and services that can be quite damaging.
Such egregious acts of corporate misconduct must be dealt with. The potential for a class action, which can result in significant financial penalties and reputational damage, encourages corporations to maintain higher standards of conduct.
Improving Access to Justice
Class actions improve access to justice for individuals who might otherwise be unable to pursue legal action. When the damages suffered by each plaintiff are relatively small, the cost of litigation can outweigh the potential recovery, discouraging individual lawsuits. Class actions aggregate these small claims, making it economically viable to seek redress.
The key reading here is – if a case has the potential to have an enhanced and certain impact as a collective, it’s best to take it up as a class action lawsuit.
As such, your choice of an attorney matters deeply. Ensure that you work with an expert who is comfortable with this space, as they can perfectly identify if a legal case should become a class action or not!
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