A class action lawsuit is used when a number of people suffer the same or similar injuries as a result of the use of the same product or the same wrongful action. As many individual injuries are not worth enough to support a lawsuit, when they band together, the value of the lawsuit adds up. That’s when a class action makes sense.
Also, filing as a class allows for the consolidation of attorneys, evidence, witnesses, and other aspects of litigation to make the lawsuit more efficient.
The concept of class action was first introduced in the US in the year 1938. ‘Class Action’, which is also known as Representative Action.
Example
The following aggrieved parties may come together for a class action lawsuit
>A group of employees subjected to discrimination
>A group of patients who were prescribed the same drug causing injurious side effects
>A neighborhood of residents whose homes or families were injured by a toxic spill
>Consumers who purchased a defective product
>Investors who lost their savings due to securities fraud.