You may have heard the term "class action lawsuit" but might not know what it means. A class action suit is one where a lot of people, or class, sue one particular person or company. There are several reasons why this may happen.
Common Reasons for Class Action Lawsuits
One common reason that a class action suit gets filed is because of reactions to medications. For example, if a lot of people have suffered from adverse reactions or died because of a particular medication, they or their family may file a lawsuit against the company who manufactured the medication. The lawsuit generally asks for reparations to be made to the affected person or family. The lawsuit may also seek to have the sale of the medication stopped because of the reactions.
Another time that a class action lawsuit may get filed is after an airplane crash. The lawyer and plaintiffs seek recompense from the airline.
The Class of a Class Action Suit
The members of the class who need to have something in common. It can't just be a bunch of people who decide to sue a company. They all have to be affected by the reason of the suit. For example, everyone needs to be affected because of the adverse reaction to the medication. People who have taken the medication without that adverse reaction won't classify as someone who can be a member of that particular class.
Class Action Settlements
While the class action settlements may sound like a lot of money, the people who were part of the lawsuit all have to split the settlement. That's after the lawyers' costs. Most lawyers who file a class action suit do so on a contingency basis. That means that they get their fees after the settlement happens. The contingency fee is usually at least 30% of the settlement.
The resulting amount gets split across all of the plaintiffs. On top of that, the plaintiffs may have to advertise that the settlement has been reached if there are many more people who would have been affected by the suit. For example, lawsuits against cell phone companies may have affected all of the subscribers. Of course, all those subscribers have to apply to get their part of the settlement. But that means that the settlement can spread out to mere dollars to each person.
For more information or advice, contact professionals such as McLaughlin & Lauricella, P.C.Share
3 February 2015
People with an eye for property can make a great deal of money buying a house, fixing it up and then selling it for a profit. However, there are many legal issues involved in this kind of pursuit. I am an attorney with experience in real estate, and I have helped many clients learn the legal details involved in flipping property. This blog will help you understand what you need to know when you are buying and selling a home as well as information about paying taxes on money made and property owned. Flipping houses can be a very profitable activity as long as you know how to do it legally.