WHAT IS A CLASS ACTION LAWSUIT?
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A class-action lawsuit is a civil case filed on behalf of a group of individuals or business entities who have been harmed in the same way, with at least one plaintiff serving as their advocate. While the concerns in a class action differ from one case to the next, the issues in dispute are identical for all class members. State or federal courts can hear class actions. If the lawsuit concerns federal legislation, then the federal court is the appropriate location.
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WHY ARE CLASS ACTION LAWSUITS PREFERRED?
While each litigant could pursue their own legal action, it's often preferable and more beneficial for plaintiffs, courts, and defendants to join individual actions into a single class-action suit.
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For plaintiffs, a class action suit means one set of witnesses, one set of experts, uniform documents, and a singular set of issues to be presented to the court. By eliminating duplicate effort, the reduced overhead costs and automation allow one law firm to handle one case rather than many law firms attempting numerous cases. Additionally, it is not uncommon for individual suits to lack the damages necessary to justify the time and expense of pursuing them separately. On the other hand, a multimillion-dollar class-action lawsuit on behalf of millions of clients is well worth the time of the class members.
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Courts also tend to prefer class-action cases for practical reasons. One lawsuit is less expensive for the courts than numerous suits. One case implies only one judge and courtroom. A single class-action suit avoids the court dockets from becoming congested with several cases.