By: Editorial Staff, Date: January 3rd, 2023
What is a class action lawsuit?
A class action lawsuit encompasses a group of people who have been injured or experienced negative effects from a damaged product, a discriminatory practice, or an environmental hazard. Today, it remains a powerful tool against pervasive systemic injustice. However, as the regulatory landscape of class actions continues to evolve, so do the risks. Businesses and organizations accountable for negligent actions should be wary of the growing perils this may pose.
In this article, we listed some of the common issues that may lead to class action lawsuits.
- Defective Products
False or misleading advertisement is one of the common malpractices that violate consumer protection laws, resulting in a class action suit.
- Consumer Fraud
This is a deceptive business practice causing consumers to suffer financial losses. In this case, victims usually believe they are engaging in legal and valid business transactions when they are being tricked.
- Securities Class Action
This type of class action is commonly known as investment fraud or stockbroker fraud. False information from a brokerage firm or investment bank causing investors to lose money is the main ground for securities class action.
This class-action lawsuit encompasses a wide range of abuses against employees. Some issues that may cause this include underpayment, off-the-clock work, missed meals/breaks, discrimination, harassment, misclassification, and tip pooling.
- Environmental Hazard
Companies releasing massive spills or toxic chemical waste that negatively affect places and their citizens can be liable for environmental disasters. Victims can file an environmental lawsuit for this case.
- Privacy/Consumer Rights
Consumer information like personal identity cards and credit card numbers are usually used to complete a product or service transaction. Privacy class action lawsuit reminds companies to use this information under consumer rights law. Violations may concern data breaches, the Fair and Accurate Credit Transactions Act, Fair Credit Reporting Act, and Telephone Consumer Protection Act.
Consumers who believe they have paid for a product for a higher price due to antitrust violations can file for a class action. This type of lawsuit concerns several companies allegedly fixing the prices of their products to prevent competition.
Anyone could join a class-action lawsuit if they believed that they have been deceived or injured in the same way that the defendant’s claim in a case. With technology and social media, you can easily check if a certain class action related to your bad experiences with the same product or service is underway.
How long do class action lawsuits take?
Some class action cases last months, while some take several years. Generally, most class action cases are settled within two to three years. However, some take longer when defendants make an appeal.
To avoid risks and stay on top of the latest updates on class action lawsuits, join our webinar: Significant Class Action Trends and Developments