Class Action

From the Latin From Latin 'classis,' meaning a group or division..

In one sentence

A lawsuit where one person or group sues on behalf of many people with similar claims.

Plain English

A class action is a lawsuit where one or more people (the class representatives) sue on behalf of a large group of people who have the same or similar legal claims. Instead of thousands of individual lawsuits, everyone's claims are handled together, which is more efficient and gives ordinary people more power against large companies. The court must approve the class, and any settlement or judgment typically applies to all class members. Class actions are common in consumer fraud, product liability, and employment discrimination cases.

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Example

If a software company sells a defective product that harms thousands of users, one user might file a class action on behalf of all affected customers. If the class is certified and wins, all class members share in the damages, even if they didn't participate directly in the lawsuit.

Used in a sentence

The class action lawsuit alleged that the pharmaceutical company failed to disclose serious side effects.

Related terms

This page is a plain-English reference and is not legal advice. Laws vary by jurisdiction and change over time. For specific situations consult a licensed attorney.