How Can Class Action Suits Change the System?

• Author: Corey Zboncak
• Posted: 2024-04-20

The legal system is complex, and it’s difficult to understand how all its components fit together. One important part of the legal system is class action suits, and they can often be a catalyst that drives changes in policy and procedure. Whether it’s lawsuits against corporations, groups of individuals, or the government, class action lawsuits can often result in positive outcomes, such as lower prices, improved safety, and more. Here’s an overview of how class action suits work and how they can change the system.

 

What Is A Class Action Suit?

A class action suit is where a group of plaintiffs (usually ten or more) join together to bring a case against a defendant or defendants for various offences. It’s similar to a personal injury lawsuit, but the damage done is often inflicted or suffered by many people instead of just one. By coming together and filing a class action suit, the group of plaintiffs can potentially receive a more substantial award and considerably spread the associated fee and legal costs.

 

Who Is Involved In A Class Action Suit?

Class action suits usually have a lead plaintiff, also referred to as the representative plaintiff or class representative. This person or entity is responsible for filing the case, deciding how and when funds are distributed, and serving as the public face for the rest of the involved plaintiffs. Depending on the case, the other individual plaintiffs may or may not be required to join in the legal proceedings.

 

What Damage Are Class Action Suits Aimed At?

Class action suits are used to redress a wide variety of harms. Class action lawsuits include consumer protection, personal injury, antitrust violations, or fraud. One example is where class action suits are used in product liability cases, where a company may be sued for the harm caused by a defective product. This type of lawsuit is often used when the harm is spread among many people, and an individual lawsuit against the company would be too costly or difficult to win.

 

What Can Class Action Suits Accomplish?

Class action suits can achieve more than just larger financial settlements for plaintiffs. In certain instances, class action suits may catalyze policy and procedure changes. The resulting court judgements or settlements can often result in companies or government entities forcibly changing their policies and practices, such as improving safety requirements, labelling products differently, discontinuing certain procedures, and more.

 

Benefits Of Class Action Suits

Class action suits benefit individuals since they can often be cost-effective for plaintiffs to receive compensation for their harm. Without filing a class action suit, the individual plaintiffs may have to bear the full legal costs and fees required to independently sue a large corporation or government entity. This can be a daunting financial burden and can prevent those who are harmed from being able to seek justice.


Additionally, class action suits can be an effective way for plaintiffs to receive a settlement quickly, without having to dispute their case in a court of law and take years to resolve. Participants in a class action suit can often join as a collective to protect their rights. In many cases, they can even seek restitution from corporations that have engaged in deceptive business practices or have been accused of negligence.

Class action cases are especially beneficial when the harm is spread among many individuals, such as when a defective product has been put on the market or when the damages suffered by each plaintiff are relatively minor. Class action suits are also a great way to take large, well-known corporations and entities to task for their illegal or unethical practices since they often won’t give in to the demands of a few individual plaintiffs. Many class action suits have catalyzed long-term change in policies and procedures, resulting in improved safety standards, better labelling of products, ceased business practices, and more.

 

Drawbacks Of Class Action Suits

Class action suits are not without their drawbacks. Many class action suits can be time-consuming and expensive for the lead plaintiff. They also may require a lot of paperwork and lengthy settlement negotiations. Additionally, plaintiffs may not receive much money compared to those awarded in personal injury cases.

 

Can Class Action Suits Change The System?

The answer to this question is an unequivocal “yes”. Class action lawsuits have been used to bring about major changes in policy and procedure and are often used to right wrongs inflicted on masses of people. Although they can involve expensive legal costs, lengthy paperwork, and long settlement negotiations, class action suits can ultimately benefit the plaintiffs and other individuals involved in the case.