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A class action is defined
as a civil court procedure in which one
or more parties file a complaint as a representative
of a larger class. A court must allow the
class action and then the members participating
in the class action will be given notice
to either include themselves or exclude
themselves from the class action proceeding.
By choosing to opt of the class action the
individual is not bound to the decision
in the case.
Federal Rule of Civil
Procedure 23 governs class actions in federal
courts. An alleged fraud or misconduct
that similarly affects different individuals
seek out a law firm to represent them and
that law firm may choose to take on a class
action. Lawyers find class action to be
more efficient for the judicial system.
The class action allows the lawyers to vindicate
the rights of a large group of people.
Class actions are beneficial for individual
parties that may not have adequate funds
to pursue an individual case. Recent statutes
have been created and passed by Congress
to eliminate instances of class action abuse
under the Private Securities Litigation
Reform Act of 1995 and the Securities Litigation
Uniform Standards Act.
To qualify for a class
action there must be enough individuals
to bring the suit to a class action. The
size of a class action has ranged from 20
to millions of people. There must be a
commonality between all the members of the
class action demonstrated and the class
action members must be making similar allegations.
Plaintiffs must be able to show that it
is sensible to operate as a class action
and not have conflicts of interest between
class action members. Class actions are
brought to court when a law firm decides
a good case is standing and it is filed
with the court.
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