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fintech / news / / The Sun U.S Edition

Class action lawsuits offer groups of people, or ‘classes,’ a way to band together in court.

Class actions consolidate similar individual legal complaints into one collective lawsuit in court.

KEY POINTS
Class action lawsuits offer groups of people, or ‘classes,’ a way to band together in court. These suits are often brought by one or a few people who allege a company or other entity has wronged a large group of people. When a suit becomes a class action, it extends to all “class members,” or people who may have similar complaints to those who filed the suit. Companies often settle class actions – offering payment to class members who typically waive their right to pursue further legal action by accepting money. These payout agreements frequently include statements by the defendant denying wrongdoing. Companies tend to settle class actions to avoid the costs of further litigation. Pollution, discrimination, or false advertising are a few examples of what can land a class action on a company’s doorstep.
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