What is a Class Action Lawsuit?
A class action lawsuit allows one or more plaintiffs, known as “representative plaintiffs” to file a lawsuit on behalf of a larger group known as the “group members,” who have been affected by the same wrongdoing.
This approach is particularly useful when individual claims might be too small to pursue separately, but when combined, they create a substantial case against a defendant. Class actions are often pursued in the federal court or supreme court, which are well-equipped to handle the financial and legal complexity of such cases. Consolidating individual claims not only supports a more efficient justice system but also strengthens the overall argument against the defendant.
For example, class actions that have been taken up in the past against large corporations like Toyota Motor Corporation and Commonwealth Bank, where disclosure issues and violations were found to have occurred, resulted in multi-million dollar pay-outs to group members.