What Is Class Action?
A lawsuit brought by one or a few plaintiffs on behalf of a large group of people with similar claims. Instead of thousands of individual lawsuits, one case resolves the common issues for everyone in the class.
Quick Answer
A lawsuit brought by one or a few plaintiffs on behalf of a large group of people with similar claims. Instead of thousands of individual lawsuits, one case resolves the common issues for everyone in the class.
Full Explanation
A class action is a special type of lawsuit in which a few 'named plaintiffs' bring a claim on behalf of a large group (the 'class') that has suffered similar harm from the same defendant. Instead of each person filing a separate lawsuit, all their claims are consolidated into one proceeding.
Under Federal Rule of Civil Procedure 23, a class action must satisfy four prerequisites: (1) numerosity — the class is so large that joining all members individually would be impractical; (2) commonality — there are common questions of law or fact; (3) typicality — the named plaintiffs' claims are typical of the class; and (4) adequacy — the named plaintiffs and class counsel will adequately represent the class.
In addition, the case must fall into one of three types: Rule 23(b)(1) (for situations where individual suits would create inconsistent obligations or impair other members' rights), Rule 23(b)(2) (when the defendant acted on grounds generally applicable to the class, seeking injunctive or declaratory relief), or Rule 23(b)(3) (when common questions predominate and a class action is superior to other methods — the most common type in damages cases).
A judge must formally 'certify' the class before the case can proceed as a class action. Unnamed class members receive notice and, in 23(b)(3) classes, have the right to opt out. If the case settles, all class members who did not opt out are bound by the settlement.
Class actions are controversial — critics argue they primarily benefit lawyers; supporters say they are the only practical way to deter widespread small-scale harm.
Real-World Example
Tobacco litigation in the 1990s involved class actions on behalf of millions of smokers who developed cancer. The tobacco companies settled for hundreds of billions of dollars. Individual smokers might have received only small payments, but the litigation forced massive behavioral and financial changes on the tobacco industry.
Consumer class actions are common when companies overcharge millions of customers by small amounts — like a $2 billing error — that would be impractical for any individual to litigate. One class action can recover the full amount and deter future overcharging.
Why It Matters for Law Students
Class actions are one of the most important (and controversial) procedural mechanisms in American law. They appear in civil procedure as an application of Rule 23, in substantive law as a vehicle for enforcing consumer protection and securities laws, and in policy debates about access to justice and litigation abuse.