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Class Action Settlements

A class action lawsuit is a legal action whereby a large representative group can collectively institute a lawsuit, usually against a large corporate entity or class of defendants.

Most class actions are brought in state courts, which historically have been more receptive to such suits than federal courts. Many class actions are usually removed to federal courts, however, especially if the plaintiff or defendant class crosses state lines and the amount in controversy exceeds $5 million.

When a class action is filed, it must be certified as such by the administering court. Most states look to the federal rules of civil procedure in determining whether to certify a class action. The class must be large enough, the legal claims must be common to the class, the defenses must be typical of the defendants, the representative parties must adequately protect the interests of the class, and the class action must be a superior method to achieving resolution of the disputes.

Class actions are a way of allowing a common consumer an opportunity to collect damages or achieve some method of relief by taking on major corporations or wealthy individuals without using his or her own resources or having to hire legal counsel. Such suits may recompense eligible class members, but sometimes at a fraction of the actual harm they may have incurred, while the attorneys representing the class members can realize tens or even hundreds of millions of dollars in legal fees.

Here are some of the more notable class action suits.

24 Hour Fitness
AIG Securities
Airborne
Ameriquest
Andesine
Asbestos / Mesothelioma Settlement
AWP/McKesson
Chinese Drywall
Costco
Countrywide Home Mortgage
De Beers Diamond
ENRON
Exxon
Fuze Beverage
GE
Google Adwords
Google Books
Health Net
Lehman Brothers
Mattel Toys Lead Paint
Microsoft
Northern Leasing
PlayStation 3
Trex Company
Tyco
Wireless Early Termination
Yahoo PPC