Class Action Suit
By Margaret Wommack, Fri Dec 9th

A class action suit is a lawsuit against a company by multipleplaintiffs who were similarly injured by the defendant. Classactions are especially good for people who individually haveonly sustained less than a few thousand dollars of damage. Thecost of an individual suit would negate the possible recovery ifthey were even to win, but in a class action suit, the cost offiling and paying lawyer fees is split between all theplaintiffs. Also, they gain strength in numbers and have a moreair-tight case to bring to court. Thus class action suits areoften a better assurance that a satisfactory settlement will bereached.

However the benefits of class action suits are in heavy debate.One topic people focus on is a settlement in whichplaintiffs are given coupons to be used within a certain timeand with the company they filed suit against. This can be seeneither as a promotion benefiting only the company in the wrong,but if this settlement could be used on a better product,gives enough of

a benefit to cover the money initially lost,doesn’t expire immediately and can be transferable, then it canbe a reasonable settlement. Nontangible settlements are alsothought to be unfair settlements because the plaintiffs are leftwith defective products and are forced to pay exorbitant lawyerfees. However in some cases such as pollution cases, injunctionsprovided for by nontangible settlements are beneficial becausethey stop damages and improve health. GA

If you have any questions about class actionlawsuits, please contact a class action lawyerright away.

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