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As a general rule, class action lawsuits involve a group of people in some capacity: A collective class, even bound together over the issue of a faulty product, suing a defendant, or a group of defendants, individual negligent companies, as an example, being sued by an individual. While more class action lawsuits are filed for product liability claims, other case types end up in court, too, including groups of shareholders suing for business fraud, employees for discrimination, and residents over environmental disasters.

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

Additionally, these types of cases do tend to have drawbacks. Before the lawsuit even moves forward, the collective group must be named as a class. Federal courts, as well, can conclude class actions if the defendants are state governments or officials or if the plaintiffs number less than The Free …
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