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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 group of defendants, multiple negligent companies, as an example, being sued by a single person. While most class action lawsuits are filed for product liability claims, other case types end up in court, too, including 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 has its benefits. Because a limited number of witnesses overlap, the trial process inevitably moves along more efficiently, while the cost of litigation tends to be lower than for separate plaintiffs filing alone.

Additionally, these types of cases do tend to have drawbacks. Before the lawsuit even moves forward, the prosecuting group must be defined as a class. Federal courts, as well, can dismiss class actions if the defendants are state governments or officials or if the plaintiffs number less than {one hundred,100.

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