Class action

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Class action

A legal complaint filed by a lawyer or group of lawyers for a group of petitioners with an identical grievance, often with an award proportionate to the number of shareholders involved.

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.
References in periodicals archive ?
If the Radioshack class is certified by the Court of Federal Claims, depending on how the class is certified, taxpayers either (i) will be automatically included in the class action, or (ii) will have the option of affirmatively electing to be included in the class action.
The taxation of contingent attorneys' fees in opt-in and opt-out class actions is discussed below.
Most lawyers outside of the ATLA agree that federal courts are better equipped than state courts to handle national class actions in a competent and consistent manner.
The rules of engagement are fairly simple: Find or invent some form of liability, file a class action on behalf of consumers, agree to a settlement, collect your winnings, and if there's anything left for the consumers in whose name the suit was filed, split it up among them all.
These companies spend an average of almost 10 percent less defending and managing class action suits, and they devote 25 percent fewer hours in-house to managing class actions.
In one of these trends, a wave of copycat litigation has hit several small to midsize life insurers; in another, plaintiffs have sought to avoid some of the obstacles blocking nationwide suits in federal courts by bringing single-state class actions, often in state courts.
Researchers also found that class actions are eating a significant portion of court time, up to five times that of other cases and nearly the most time-consuming of all.
Product class actions have been settled in similar scenarios, frequently with the support of the defendant.
The white paper examines the number of class actions pending in federal courts from 2002-2005; the allegations involved, including specific accounting allegations; securities judgments, types of plaintiffs; and, the industries targeted.
To date, there have been 22 securities class actions filed related to options backdating allegations, 20 of which were filed in 2006.
According to the white paper's author Carol Zacharias, Senior Vice President and Counsel, ACE Professional Risk, part of ACE USA, the amounts paid to resolve securities class actions suitsCototaling $17.