Many of our cases are brought as class actions. Click here for a description of the typical procedures and terms used in a class action. Class actions are a means of leveling the playing field between large corporations or other entities on the one hand and individuals or relatively smaller institutions or businesses on the other. Class actions enable small claimants to band together to fight back against large corporations in situations where the individuals, by themselves, may not have a sufficient amount at stake or the financial resources to justify litigation. Put simply, class actions allow for the vindication of the rights of groups who, individually, could well be powerless. The attorneys in our Firm have taken a lead role in class actions throughout the country seeking to redress such improper activities as:
-
Investment fraud
-
Overcharging by hospitals or other health care companies
-
Improper billing by credit card companies
-
Undisclosed fees charged by banks or credit card companies
-
False advertising by retailers and others
-
Deceptive sales and marketing practices
-
Artificial stock price manipulation in violation of federal securities laws
-
Sweepstakes fraud
-
Bad faith by insurance companies
-
Gender discrimination
-
Race and religious discrimination
-
HMO failure to pay claims to doctors and/or patients
-
Sale and marketing of defective or dangerous products
-
Violations of state and federal antitrust law
-
Violation of state usury laws by "payday" lenders
-
Mortgage and insurance company add-on products with little or no value and improper or hidden fees
-
Improper fees or hidden payments in car financing transactions
-
ERISA Violations
Many class actions are started by one or two complaints about practices that affect many other people. If you have been harmed by a fraud or deceptive practice, please CLICK HERE to describe the activity and one of our attorneys will contact you.
COMMONLY USED TERMS IN CLASS ACTION LITIGATION
|
Absent Class Member
|
A person who is a class member but is not named in the complaint and does not actively participate in the litigation.
|
|
Adequacy
|
A term used in the determination of whether the class is receiving proper legal representation by class counsel and proper representation of the claims by the named class representative.
|
|
Certification
|
The process whereby a court determines whether a case will be permitted to proceed as a class action. This is important because depending on the type of class action, the resolution of the lawsuit binds all members of the class certified by the court. Thus, a class action is an exception to the general rule that lawsuits can only be prosecuted by named parties to the suit.
|
|
Class Counsel
|
An attorney or group of attorneys that is appointed by the court to provide legal representation to the plaintiff class.
|
|
Class Representative
|
A person named in the complaint as the representative plaintiff and who has been determined by the court to be "adequate" to represent the interests of the class.
|
|
Common Fund Class
|
An action seeking money damages for Class Members and the creation of a cash fund to be divided among the class members and from which class counsel's fees and expenses can be paid.
|
|
Decertification
|
An action taken by the court to reverse a previous decision which permitted a case to go forward as a class action.
|
|
Declaratory Judgment Class
|
An action seeking to get a court to declare what the rights and obligations are of the respective parties in the litigation.
|
|
Exclusion Request
|
A document filed with the court because a class member does not want to participate in class action.
|
|
Fairness Hearing
|
When a settlement is reached in a class action, a court must hold a hearing to evaluate a proposed settlement and hear any objections to the proposed settlement.
|
|
Injunctive Relief Class
|
A lawsuit filed to get an order from the court directing a person or company to do or to stop doing a certain act.
|
|
Interlocutory Appeal
|
The process whereby a pending case may be reviewed by an appellate court to determine if a ruling made by the trial judge was correct.
|
|
Intervene
|
An action where someone who is not a named party to the lawsuit seeks court approval to join in the suit as a named party.
|
|
Lead Counsel
|
The attorneys who are appointed to represent the interests of the Lead Plaintiffs - most commonly used in securities fraud class actions.
|
|
Lead Plaintiff
|
An individual, institution or group appointed by the court (typically in securities fraud litigation) to direct the class action and supervise lead counsel. The lead plaintiff often has the largest financial interest in the outcome of the case.
|
|
Limited Fund Class
|
A class action wherein a claim is made that the assets of a defendant are inadequate to fully compensate all of the class members and the court is asked to allocate the distribution of any funds obtained in the litigation.
|
|
Lodestar
|
A term used in connection with an award of attorneys' fees made by the court which is based on numbers of hours spent on the case times an attorneys' hourly fee.
|
|
Notice
|
A court approved document which tells class members about the lawsuit and their rights and responsibilities in the litigation.
|
|
Opt - Out
|
The act by which a class member elects to exclude herself from a class proceeding. This action has generally has the effect of not binding the class member to any judgment in the case. It also has the effect of excluding a class member from being able to participate in any settlement or favorable judgment.
|
|
Objector
|
An individual who opposes some aspect of a proposed settlement of a class action, such as the nature of the relief obtained for class members or the amount of attorneys' fees.
|
|
Publication
|
A term referred to in the context of publishing a court approved notice of class action in the newspapers or through television or radio advertisements.
|
HOW A CLASS ACTION PROCEEDS IN COURT
The first step is the drafting and filing of a complaint against the defendants. This complaint is filed with the court and delivered or "served" on the defendants by the U.S. mail or a process server.
After the complaint is filed, the defendants will usually file an answer denying the actions described in the complaint. They may also to challenge the complaint by filing certain motions. The answer will be required after the judge rules on the motions unless the case is dismissed.
After the answers are filed a court imposed period of "discovery" begins. This involves the lawyers requesting documents about the lawsuit from the other side, asking written questions, and taking depositions.
During the discovery phase, the defendants may file motions, a form of pretrial testimony, challenging the legal sufficiency or factual basis for the lawsuit. These are usually called motions for summary judgment. If a defendant wins the motion, the claims of plaintiffs could be dismissed.
Before or after all discovery is completed, the plaintiff will file motion to certify the case as a class action. The defendants will oppose this request. The Court will generally have a hearing, and if plaintiffs win, the class will be certified.
Once a class is certified, if the lawsuit is one for money, the court will order notice go to the class. Notice is published in a newspaper, or TV or sent through the mail, and advises class members of their rights, and the schedules for objecting or "opting-out."
Trial or Settlement. After final certification is granted, additional discovery may be taken and the case will be set for trial unless it settles. The trial of a class action is the same as for any other civil lawsuit. The parties put forward evidence and witness testimony and the jury deliberates. The court must approve any settlement of class action, as well as any attorneys' fees to be awarded to class counsel.
