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 ?
The Washington Post, urging passage of CAFA, editorialized in 2001 that "class actions are unusually prone to abuse, and the incentive structure of modern class-action litigation encourages bad behavior by lawyers who are accountable to nobody." (40) The problem, according to the editorial, is the clientlessness of class action practice.
The Class Action Fairness Act of 2005 imposes some meaningful restrictions on the epidemic of class-action lawsuits that have rocked the business world.
The third prong of the industry's tort-reform agenda, hanging the way class-action lawsuits are handled, also died at the hands of Senate Democrats.
(107) See Kate Coscarelli, 2006 Sees Sharp Drop in Class-Action Suits, STAR-LEDGER (New ark), July 28, 2006, at 51 (describing a 45% reduction in class action filings in the first half of 2006 and speculating whether the Milberg Weiss indictments are a cause of the drop in filings); see also Brooke A.
When the group set out to collect data on class-action litigation, it learned that the Rand Corp.'s Institute for Civil Justice had already begun a study on the same issue, Mirel said.
Ken Schloman, a spokesman for the Alliance of American Insurers, said the reform aims to get class-action lawsuits that are national in scope tried in federal court rather than a state court.
Seldom does a week go by that Isquith doesn't announce that he's filed yet another class-action against a major corporation and its CEO, alleging securities fraud.
Jeff Greenberg, the man behind Louis Rukeyser's Wall Street, Lous Rukeyser's Mutual Funds, the Gilder Technology Report, and innumerable other high-profile newsletter success stories, has now turned his eye to class-action law suits.
Rule 23, for example, might address the effect one federal court should give to the refusal by another federal court to certify a class action or to approve a class-action settlement.
Where Stalin used show trials, some modern totalitarians make use of class-action lawsuits and extorted settlements -- the most significant example being the $246 billion settlement between the tobacco industry and 41 state governments.
A bipartisan bill was introduced in the House that would establish uniform standards to govern class-action lawsuits.