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The Main Types of Class Action Lawsuits

If you’ve been harmed as a result of negligence or bad behavior by a large company or entity, you might be concerned about the stability of your future. After all, you’ve faced some sort of loss and you’re unsure of what to do.

The good news is that you might not be alone in this scenario. When a large number of people have faced the same injustice from the same source, class action lawsuits can provide a helpful and workable solution.

What is a class-action lawsuit, and what are the different types you should be familiar with if you think you might have a case? Read on and we’ll walk you through all the many details.

What Is a Class Action Lawsuit?

When a group of people has all been injured in a similar manner to one another, they have the ability to come together and seek compensation as a group as opposed to a series of individuals.

In addition to being known as a class-action lawsuit, this type of legal situation is also often referred to as multi-district litigation or mass tort litigation. The reasons for coming together for this kind of lawsuit are numerous.

It helps make the legal process much simpler for one. If all the plaintiffs have faced the same kind of loss, it makes more sense for representatives of the whole to proceed through the case instead of having to work through hundreds of similar cases.

It makes the process of receiving compensation for those damaged much quicker as well, as you can imagine.

Most often, these cases are filed by consumers who have experienced loss due to the actions or failures of a large company. The claims are generally small but significant enough.

Some examples of situations where a class action lawsuit may be brought about are when a company releases a defective product, when they engaged in dangerous or illegal business practices, if they engage in false advertising, or if they breach a contract they have with their consumers or clients.

A Consumer Class Action Lawyer is usually hired early in the process and oversees the case through completion, in which case all of those involved in the class-action lawsuit would get their compensation.

Much of the work in this kind of lawsuit requires making contact with people who have experienced the same kind of loss.

Types of Class Action Lawsuits

There isn’t just one version of a class-action lawsuit out there. Given the complexities of the legal world, there are actually a great many. If you think that you might have a case against a large company or conglomerate, you might want to look into which type of lawsuit makes sense for you.

Defective Product and Consumer Fraud Lawsuit

Anytime that a consumer is deceived, purposefully or not, for the gain of a large company, this type of class action lawsuit could be brought forward. In fact, this is generally the most common class action lawsuit you see organized, as it covers a wide range of business practices.

When a company releases a defective product, purposefully or not, this is the kind of lawsuit that would be organized. Say a pharmaceutical company releases a medicine that is actually not as effective as advertised, or may even provoke dangerous side effects?

This is the lawsuit you would see organized by the group of people who suffered as a result of the release of said product.

All false and misleading advertising claims would fall under this umbrella, as well as any and all breaches of consumer protection law. Breach of warranty could also be brought up under the umbrella of this type of lawsuit as well.

This type of case can take time and will require a skilled class action lawyer to make a happy result come about. However, this is also the most successful and common type of class action case.

Employment Lawsuit

Over the past one hundred years, all types of employment laws have been signed into place in the United States. These laws protect workers in various settings against various threats: discrimination, underpay, a lack of benefits, a lack of power.

Often, when we think of employment law cases, we think of a company versus an individual that they wronged. But what if a company has violated one or more employment laws systematically?

If every employee of a company is a victim of a breach of this kind of law, an employment-based class action lawsuit could be brought forward. All of the employees and former employees of a business could sue for the damages done to them as one collective unit.

Environmental Lawsuit

It’s no secret that big business hasn’t always been the most concerned about the well-being of our planet. However, sometimes the impact of environmental decisions made by these big businesses can impact the health of those in the community around them.

This could be in the form of something huge, like the BP oil spill that produced an untold number of lawsuits against the company.

It might also be something less severe but still serious, like the release of certain chemicals into the air near a company’s plant.

How Do Class Action Lawsuits Work?

If you’ve been harmed or damaged by the actions of a large corporation, you might not be alone. Gathering together with others who have faced the same hardships can be a great way to fight injustice and get the compensation you deserve. The above information on class action lawsuits can help you understand how all of this might work.

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