7 Frequently Asked Questions About Class Action Lawsuits

July 13, 2016 @ 9:16 am

Updated: 02/17/2025

Class action lawsuits may grab headlines and make for compelling news stories, but many people do not understand the scope of these legal cases and their impact on future laws and regulations. More importantly, few people understand how these lawsuits can impact them personally or how to file a class action lawsuit if they are affected. Here are seven critical things to understand about class action lawsuits:

1. What is a Class-action Lawsuit?  

Very simply, a class action lawsuit can be defined as a group of citizens who collectively sue another party, which is often a corporation or organization. Although there are many plaintiffs, the affected group agrees to pursue legal action as a single unit in order to gain more traction and limit individual costs. While this makes sense to Americans, many people around the world do not have this opportunity. The modern conception of class action lawsuits began in 1966 when the American Federal Rules for Civil Procedure were revised and clarified. This largely coincided with the Civil Rights Movement, and class action lawsuits were seen as a viable means of seeking change and justice. Other countries have adopted similar laws, but class action lawsuits remain a predominantly American experience.

2. How Many People Do You Need for a Class-action Lawsuit?

Class action lawsuits must satisfy several criteria to advance in the legal system. One of the critical considerations is the number of people who join the suit. Legally speaking, there is no set number required for a class action lawsuit to move ahead, but most cases that are approved have hundreds of plaintiffs. Having this many participants gives the case validity in court, effectively establishing the case’s innate merits. For plaintiffs, however, these numbers mean power. Most of the time, class action lawsuits are more effective at eliciting a response from larger corporations, many of which shrug off small lawsuits as part of normal business.

3. What are the Pros and Cons of a Class Action Lawsuit?

Class action lawsuits, like any legal proceeding, have pros and cons. For example, the shared legal fees make it easier for individuals to join and get the legal justice they deserve. In addition, having many people come together against one cause gives the case more validity and makes winning against major corporations more likely. 

For all the power that a class action lawsuit can give you, however, it is important to remember that these lawsuits may require some sacrifice from participants. If you join a class action lawsuit, you often give up the right to pursue legal action on your own. This means that you may have to live with whatever the verdict of the lawsuit is, even if it does not satisfactorily address your situation. In addition, because the payouts are split among all of the plaintiffs, you may receive less compensation than if you were to pursue legal action alone. 
This is why all participants need to consider their individual situation carefully before signing onto a class action lawsuit. In some cases, you may have a better chance at a meaningful court victory if you file a suit on your own.

4. What is the Average Payout for a Class-action Lawsuit?

Joining a class action lawsuit is easy, and sharing expenses with other claimants can save money. However, while corporations may ultimately settle some class action lawsuits, it does not guarantee a large payout for members who have joined a class. The success of a class action lawsuit depends on many factors, including the likelihood that a case within the class would win on its own.

5. What are some examples of Class Action Lawsuits?

Due to the large-scale nature of class action lawsuits, there is no shortage of success stories in popular media. It’s hard to find someone who doesn’t know about the wave of asbestos-related class action lawsuits in the late 1900s. The Enron Scandal was another widely publicized class action case that focused on years of accounting fraud by the named company at the expense of shareholders. The class action lawsuit that followed ultimately resulted in over $7 billion in damages awarded to the plaintiffs.

Related: 3 of the Most Influential Class Action Lawsuits

6. What Types of Class Action Lawsuits Are There?

• Consumer Fraud: These types of class action lawsuits are filed when consumers are misled or harmed by deceptive advertising, defective products or hidden fees.
• Product Liability: Cases involving defective or dangerous products.
• Employment: Employees of large companies may band together against employers for wage theft, discrimination or workplace law violations.
• Data Breach and Privacy: Actions against companies for failing to protect personal data or misusing private information.
• Environmental: Lawsuits addressing harm caused by pollution, toxic spills or hazardous waste exposure.
• Civil Rights: Lawsuits addressing systemic discrimination or violations of constitutional rights.

7. What are some examples of Class Action Lawsuits?

If you’re confused about how to file a class action lawsuit, you’re not alone. Class action lawsuits are complex, involving tens to hundreds of parties and spanning several years. Before you decide to start or join a class action lawsuit, it is critical to discuss the case with a lawyer you trust. 

At Morrow, Morrow, Ryan, Bassett and Haik, our lawyers have extensive experience handling class action lawsuits. If you would like more information on how to file a class action lawsuit or to get an objective assessment of what you might stand to lose or gain from your involvement in one, contact our team today. Schedule your free consultation online or by calling 800-356-6776, and let us help you determine the legal action best suited for you.