class action lawsuit


Also found in: Dictionary, Thesaurus, Medical, Legal, Encyclopedia.

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 ?
In Dabit, the Court unanimously ruled that Congress intended all class action lawsuits involving securities listed nationally and traded on a national exchange to proceed in federal court, where the law is more predictable.
That prospect," the justices concluded, "squarely conflicts with the congressional preference for national standards for securities class action lawsuits.
This promotes predictability by ensuring that securities class action lawsuits will be subject to rigorous scrutiny by federal courts applying federal standards.
OB) today announced the completion of the settlement of the federal and state court class action lawsuits that were filed against the Company and its former executive officers, Thomas P.
On February 22, 2005, the Company executed written settlement agreements to settle the federal and state court class action lawsuits.
As a condition to the settlement agreements, the courts in the federal and state court class action lawsuits must have entered orders granting final approval of the settlements reached in those respective actions, and such orders must have become final and non-appealable.
Fire has the option to terminate the settlement agreements if the cumulative dollar value of the claims held by individuals or entities that "opt out" of the federal and state class action lawsuits exceeds $250,000.
Payment of this amount is contingent, however, upon the courts in the federal and state class action lawsuits granting final approval of the settlements reached in those respective actions, and such orders becoming final and non-appealable.
The bipartisan bill creates uniform rules regarding where class action lawsuits can be filed and moves many class action lawsuits, especially interstate lawsuits and those with national implications, from state courts to federal courts.
Realtors(R) support establishing uniform standards for where class action lawsuits can be filed," said NAR President Al Mansell, CEO of Coldwell Banker Residential Brokerage in Salt Lake City.
Class action lawsuits were established as a means of resolving lawsuits involving large numbers of individuals with similar claims.