Class action lawsuits are designed to resolve several plaintiffs of the same nature in court at the same time. Class actions are particularly effective in resolving financial lawsuits, often arising from unfair business practices, product defects, employment claims, and securities disputes.
In some states, a notice of class action lawsuit is meant to inform you that you have been identified as a plaintiff based on the circumstances and characteristics of a lawsuit. Notices of class action are sent to all persons whose rights could be subject to the outcome of a class action lawsuit.
You are allowed to attend the hearing and present any comments or objections to the lawsuit or settlement agreement. You may also submit written objections or comments but are not required by law to appear during the hearing or submit any comments and objections. Once submitted, you should seek guidance from an experienced business attorney.
Why is it a Class Action?
A class action permits one or more plaintiffs to present a lawsuit in court on behalf of a larger class or group of individuals. This allows the court to preside over lawsuits that could overwhelm the court if presented by each class member that feels offended by the actions of the defendant.
Nevertheless, class actions serve many more purposes than the “too many plaintiffs” situation. One of the most significant purposes is to protect absentee defendants’ interests and shield the defendant from inconsistent obligations. Moreover, a class action facilitates the provision of an economical and convenient means for the disposal of similar lawsuits.
In most states, to decide that a litigation is a class action lawsuit, the district court must make at least one of three findings:
- Separate lawsuits by the class members would result in inconsistent rulings or may substantially impede or impair the ability of other class members to protect their interests.
- The defendant has acted or abandoned their obligations on grounds applicable to a group of individuals in a way that declaratory or injunctive relief would be appropriate for the entire class.
- Common laws predominate the class members’ specific litigation questions, and that a class action lawsuit would be superior to alternative methods to resolve the dispute.
How did they Acquire Your Contact Information?
As part of the litigation process, the attorneys have to identify and contact all the individuals that could be affected by the lawsuit. The discovery phase of the legal proceedings requires the attorneys from both sides to exchange documents and witness testimonies.
The plaintiff’s attorneys may have to request documents from the company that include contact information for all class members. Where class members cannot be identified, the notice of class action lawsuit is often published in newspaper sections that are likely to be read by the class members.
What Action Should I Take After Receiving the Notice?
Unless you want to withdraw from the lawsuit, you do not have to do anything after being alerted to the litigation. Nevertheless, you may want to claim your part of the settlement if the case has already been settled. In this case, the notice will include a guide on how to do so along the notice.
If the lawsuit is later resolved in a settlement, you may receive another notice through the same channel informing you of the settlement agreement. Nevertheless, if the case is an “opt-in” lawsuit, you will be required to affirmatively opt to actively participate in the litigation. Opt-in cases often involve illegal employment practices, such as minimum wage violation, unpaid overtime, or workplace discrimination.
How Can You Exclude Yourself From a Class Action Lawsuit
If the lawsuit is not an opt-in litigation, you can exclude yourself from the process. However, you will forego any payment that may be agreed upon after a settlement in the case. In your request for exclusion, the following details will be required:
- Your full name
- Your current address
- Your phone number
- A statement of your wish to be excluded from the lawsuit
Do I Need an Attorney?
Yes. Especially for opt-in class action lawsuits, the process can be complicated, and you may need the guidance of a business attorney on timelines and how to get the best settlement from the lawsuit. Moreover, there are laws that you may ignore pertaining to your case that may determine whether or not you will be compensated and how much you will receive in a settlement.