What Is a Class Action Lawsuit?
A class-action lawsuit is filed by one person or a small group of people on behalf of a larger number of individuals suffering from a wrong. It could be in response to a product that malfunctions and almost universally harms the users. In employment matters, such claims often arise concerning unpaid wages, overtime, misclassification, or benefits. The lawsuit is designed to redress the harm to the entire group.
For example, in Wal-Mart v. Dukes, plaintiff Betty Dukes alleged that she and all women who were currently working or who had previously worked in a Walmart store were being discriminated against and denied the training necessary for promotion.
Class action lawsuits are governed by Rule 23 of the Federal Rules of Civil Procedure. The rule requires that:
- The number of plaintiffs is so large that individual lawsuits would be impractical
- There be questions of fact and law common to all those represented in the class action
- The claims or defenses of the class representatives be typical of the claims or defenses of all representatives
- The class representatives will fairly and adequately protect the interests of the whole class
In an employment-based class-action lawsuit, one of two other requirements must be met:
- The employer has refused to stop their illegal conduct, which can be corrected by an injunction by the court, or
- The claims of the class representatives predominate over the claims of the individuals; the common claims must predominate over the individual claims
Why Class Action Over Individual Lawsuits?
If a relatively-large group of individuals are being subjected to the same harm, that can be the basis for a class-action lawsuit. A judge will decide whether or not to certify the class. Otherwise, each of the potential members of the class would file separate lawsuits.
Class action lawsuits allow the representatives and members to participate in one legal action. It saves both time and money. It also forces the defendant to seriously consider the consequences of a large challenge. Many class-action lawsuits end in pretrial settlements.
If it Goes to Trial ...
If the defendant chooses to fight it out in court, the person or persons named in the lawsuit as plaintiffs – for instance, Betty Dukes in Wal-Mart v. Dukes – will be required to testify before a judge and jury. Other witnesses may also be called to substantiate the claims of the main plaintiff.
As the lawsuit is being resolved, the attorneys representing the plaintiffs will notify the potential members of the class. The potential members then choose to participate or opt out. If they participate, they will share in the court-approved verdict or settlement.