What Are the Different Types of Class Actions?

A class action lawsuit allows a group of people with a common complaint or facing a similar legal situation to sue someone together. This saves time and money over everyone suing separately, and typically has higher chances to succeed than with a single plaintiff and lawsuit.

But did you know there are different types of class actions? In this article, we’ll break down the major categories so you can understand the basics and how a class action lawyer can help.

1. Product Defects

One of the most common types of class action lawsuits involves product defects. If a product is designed or manufactured improperly, it can lead to injuries for many consumers. You’re probably familiar with some high-profile examples of product defects in recent years.

In each of these types of cases, class actions aim to hold companies accountable for putting profits over consumer safety. Settlements and verdicts also set a precedent that can force entire industries to make changes to protect public health.

2. Dangerous Drugs

Class action lawsuits regarding dangerous drugs and defective pharmaceutical devices are common. When a drug or medical device causes harm to many people, a class action allows all the affected individuals to join together in a single lawsuit.

Filing a class action holds pharmaceutical companies and device makers accountable for negligence that impacts public health. The outcome of a successful class action lawsuit can include compensation for victims, changes to make the product safer, and penalties to deter similar conduct in the future.

3. Employment

Employment class actions typically involve groups of employees suing their employer over issues like unpaid wages, discrimination, or poor working conditions. Class actions may also be brought against employers for discriminating against employees based on attributes like race, religion, gender, age or disability.

In many cases, employment class actions are resolved through settlements that provide relief to class members, like unpaid wages, job opportunities, policy changes, training, monitoring, and cash payments.

4. Finance

If you’ve invested money with a brokerage firm or financial advisor and lost money due to their questionable actions, you may be able to join a class action lawsuit. These types of class actions, known as securities class actions, are brought on behalf of a group of investors who have suffered financial losses because of investment fraud or other inappropriate practices.

class actions can be brought against various types of companies

The most common types of class actions in this category are those related to broker misconduct, such as churning, unsuitable investments, or unauthorized trading. Churning occurs when a broker excessively buys and sells securities in your account, not for your benefit but to generate commissions. Unsuitable investments are those that do not match your investment objectives or risk tolerance.

5. Environment

When it comes to the environment, class action lawsuits are often aimed at preventing pollution and holding companies accountable for the damage already done. These kinds of cases can force companies to change their practices to avoid future litigation, like installing better filters or handling waste more responsibly.

The specific environmental laws behind these kinds of class action cases vary between countries and states. But in general, they give citizens a means to protect natural resources and public health when government regulations fail or go unenforced.

6. Civil Rights

Class action lawsuits have been instrumental in advancing civil rights in the U.S. The landmark Brown v. Board of Education case ended racial segregation in schools, opening up education for all. More recently, class actions have tackled other important issues like police misconduct, workplace discrimination, and the rights of people with disabilities.

Class actions have shaped the civil rights movement by tackling large-scale inequities that impact entire groups. While still controversial, they remain an important legal mechanism for promoting equal treatment, fairness, and justice when other options have failed.

An Experienced Lawyer Can Answer Any Questions You Have About Class Action Lawsuits

Have you been wronged by a company’s negligence or improper actions? Do you think there are others in a similar situation? You may be able to join together in a class action lawsuit.

The legal team at Class Action Lawyer Coalition has the knowledge and experience to determine if your situation qualifies for a class action. Don’t hesitate to call us toll-free at 855-938-0980 to find out if your case has merit.