class action lawsuit

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Class Action Lawsuit

A lawsuit that occurs when multiple people, who claim to have been wronged by the defendant in the same or a similar way, seek restitution, even if the alleged wrongs occurred at different times. For example, multiple shareholders may file a class action suit against a company if they suffered losses from similar fraudulent actions. Proponents of class actions lawsuits contend that they allow "the little guy," however defined, to seek justice. Opponents argue that they enrich attorneys and do not necessarily help the actual plaintiffs. See also: Tort reform, Class Action Fairness Act of 2005.

class action lawsuit

A lawsuit in which one party or a limited number of parties sue on behalf of a larger group to which the parties belong. For example, investors may bring a class action lawsuit against a brokerage firm that has actively promoted a tax shelter without having adequately disclosed the attendant risks. See also shareholder derivative suit.
References in periodicals archive ?
The decision has huge implications for the future of class action suits, which largely exist to allow plaintiffs to pursue claims collectively when it is too expensive to do so individually.
However, an uptick in securities class action suits filed in the first few weeks of the third quarter suggests that the second quarter was only a breather in what is shaping up to be an active year for securities litigation.
In addition to shareholder derivative suits and class action suits for board breaches of duty, exclusions from federal plans are exposures faced by health care boards.
While buyers don't have access to insurer claims files--such as those used by actuaries to price risk--they do have access to detailed information on securities class action suits, the principal cause of claims under public company D & O policies.
It drives home the message that class action suits are out of control," said Michael Duncan, general council for the National Association of Independent Insurers.
that have refused to certify class action suits against tobacco companies because of the large number of individual issues.
But California Advocates for Nursing Home Reform has filed three class action suits against the state of California in federal court.
Nobody would mind class action suits if they didn't work," Cabraser said.
In 1989, several class action suits filed against Continental Can Company for violations of Section 510 of the Employee Retirement Income Security Act of 1974 (ERISA) were consolidated and a settlement agreement was reached under the supervision of a Special Master.
The number of securities class action suits filed was essentially unchanged, with 234 suits filed in 2009 compared to 239 the prior year, while the number of securities fraud suits filed by regulators grew sharply, with a 22 percent increase over 2008.
Now that both class action suits have been dismissed, and assuming that O'Rourke does not refile, the company should be able to avail itself of opportunities that the existence of such suits would preclude.
However, Securities Class Action Suits Likely to Decrease in Significance