Class Action Lawsuits: Protecting Consumers

Why class action lawsuits are important

Even the preamble to the CAFA affirmed the value of class action suits: "Class-action lawsuits are an important and valuable part of the legal system when they permit the fair and efficient resolution of legitimate claims of numerous parties by allowing the claims to be aggregated into a single action against a defendant that has allegedly caused harm."

A class action lawsuit enables hundreds or thousands of claimants to file a single joint suit against a defendant. This process offers many advantages:

It makes the legal process more efficient

It provides incentive to seek small recoveries in cases of widespread, minimal harm to numerous individuals

It deters future wrongdoing by awarding damages

It provides balance in cases of defendants with well-financed legal representation

Reasons for class action lawsuits

Some of the commonest class action lawsuits involve people who have contracted the lung disease mesothelioma from workplace use of asbestos. Such class action suits allege that companies did not warn workers of the known health risks related to asbestos exposure.

Many class action lawsuits are settled out of court, with the defendant offering compensation while continuing to deny wrongdoing. Examples include two class action lawsuits against AOL in 2004 for allegedly continuing to bill subscribers after their accounts were cancelled, and a 2005 class action lawsuit against Netflix for allegedly misleading subscribers by advertising unlimited movie rentals.

More information on lawsuits