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 ?
At that meeting, the class action lawsuits filed by the Connecticut State Medical Society against the state's six largest health plans were discussed, and members from all states were urged to encourage their own states to join with Connecticut at no charge.
Supreme Court) ruling marked the death knell of class action lawsuits against managed care companies that are based on federal benefits law and racketeering claims.
While they show concern about individuals' ability to seek compensation from large organizations, they worry about the number and size of awards of class action lawsuits as well as the share of settlements that attorneys claim.