Class actions are a special kind of lawsuit in which one person acts as a “class representative” to bring a lawsuit for an entire group or “class” of people or businesses. Legal rules allow class actions when people have been harmed in the same way, though each person’s injury might be too small to justify an individual lawsuit.
Some examples of class actions include lawsuits:
• Against a company that has harmed its shareholders or investors;
• Against manufacturers or developers of products or providers of services that harm consumers;
• Against an employer that systematically underpays employees,
• Against a financial institution or an insurance company that harms customers.
Lawyers working with Progressive Law Group have brought class actions against large employers, internet companies, banks, credit card companies, telecommunications providers, food companies, makers of defective products, gasoline refiners, and insurance companies.
What is a “class representative”?
A “class representative” is the person who brings the lawsuit on behalf of a group or class. A class representative acts to protect many people besides themselves. They must undertake tasks not required of other class members and have to pay extra-careful attention to the lawsuit. In recognition of this effort and responsibility, courts can award class representatives an incentive payment that recognizes their efforts on behalf of the broader group. A class representative has to be willing and able to carry the associated responsibility.
Who covers the costs of bringing a class action?
Progressive Law Group generally advances the expenses of the litigation at no cost to the representative plaintiff and class members. This is often done in cooperation with other law firms.
How are lawyers in a class action paid?
If a class action is not successful the lawyers may go unpaid.
If a class action is successful, the lawyers have their fees and expenses paid from the money paid by the defendant. The judge in the case has to approve the settlement of a class action lawsuit, and ultimately determines the proper reasonable fees in light of the benefit obtained for the class.