Class Action Iq Q501

As a general overview, class action lawsuits involve a group of people in some capacity: A collective class, formed together over the issue of a defective product, suing a defendant, or a band of defendants, multiple negligent companies, for instance, being sued by a single person. While most class action suits are filed for product liability claims, other types of cases end up in court, too, including shareholders suing for corporate fraud, employees for discrimination, and residents over environmental disasters.

With a case, which can be filed in either federal or state court, class action lawsuits has its benefits. Because less witnesses overlap, the trial process inevitably moves along more efficiently, while the overall cost of litigation tends to be lower than for one off plaintiffs filing alone.

On the other hand, these types of cases do tend to have drawbacks. Before the lawsuit even progresses, the collective group must be named as a class. Federal courts, as well, can stop class action lawsuits if the defendants are state governments or officials or if the plaintiffs number less than {one hundred,100.

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