While the subject matter of class action lawsuits can vary widely, two factors are present in nearly every class action:

1. the factual and legal issues in dispute are common to all members of the class, and
2. many people have been affected by the issue in dispute, making it impracticable to bring each of their individual lawsuits before the court.

.

• Individuals who have had personal and private information improperly disclosed by businesses, including by health care providers and credit reporting companies;
• Employees of a business who have not been paid all the wages and/or benefits owed to them under state or federal law;
• Employees of a business who have been victims of a pattern or practice of discrimination (racial, age or gender discrimination);
• Individuals who purchased the same product based on fraudulent or deceptive representations about the product;
• Individuals who are consumers of products and services and who did not receive the products and services they bargained for or were overcharged for the products or services;
• Individuals who received unsolicited text message spam;
• Individuals whose telephone conversations have been recorded without their authorization or consent;
• Individuals and small businesses that have been harmed through price fixing conspiracies; and
• Individuals who have been harmed or victimized by other unfair or fraudulent business practices.

Step 1: One or more individuals identify a harm that they have suffered as a result of a business’s acts or practices. A complaint is prepared which seeks to redress the harm for both the individual and all other persons who are similarly situated (the class). The complaint document is then filed in court, initiating the lawsuit. The complaint is then delivered or “served” on the business by U.S. mail or a process server.

Step 2: After the complaint is filed, the business that is being sued in the class action (now called the defendant) will usually file an answer denying the allegations. Alternatively, the defendant may elect to challenge the complaint by filing a “motion” challenging the lawsuit. The motion typically argues that the harmed individual (now called the plaintiff) cannot pursue a case against the defendant and that the lawsuit should be dismissed. If a motion is filed, an answer will be required only after the judge rules on the motion and denies the defendant’s request to dismiss the case.
Step 3: After the answer is filed and any motions are ruled on, a period of “discovery” will usually take place. Discovery involves the lawyers demanding documents from the other side, asking written questions, and taking depositions. Often courts will hold a conference with the lawyers and set a timetable for preliminary discovery needed to support the parties’ arguments on whether to certify the class or not.

Step 4: After a period of preliminary discovery is completed, the plaintiff will file a motion to certify the class action. The motion to certify the class action determines whether the case can proceed as a class action lawsuit. The defendant almost always opposes the motion for class certification. The court will have a hearing on the motion and, if the plaintiff wins, the case will proceed as a class action.

Step 5: If the lawsuit is certified as a class action and the lawsuit is one for money, the court will order a notice to be sent out to all members of the class. The notice is sent to class members through mail or email and/or is published in newspapers, magazines, or on the internet. The notice advises the class members of the lawsuit, informs them of how their rights may be affected by the lawsuit, and sets deadlines for objecting, “opting out,” or entering an appearance through a lawyer.

Step 6: Once the court decides on the procedure question of whether the case will be a class action, the court will typically hear a motion to decide the case without a trial, called a motion for summary judgment. The motion for summary judgment decides whether the plaintiff has sufficient evidence of his or her claim to take the case to trial. If the case is not decided on summary judgment and the court believes that there are still questions in dispute, the case will be prepared for trial.

Step 7: Trial or Settlement. After final certification is granted, additional discovery may be needed before the case is tried. After that discovery is completed, the case is set for trial. The trial of a class action procedurally is the same as for any other civil lawsuit. Alternatively, the case may settle, allowing the plaintiff and members of the class to receive some recovery without taking the case all of the way to trial.

Without class action lawsuits, sophisticated multi-million dollar companies and institutions, who are often the defendants in class actions, would be able to fraudulently take small amounts of money from consumers or deprive workers of the full pay they are owed without facing any repercussions. Class action lawsuits allow the consumers or employees to band together and recover money they may be owed while also putting a stop to the wrongdoer’s practices. Often, class action lawsuits are the only way for consumers and employees to protect their rights.