KJ McElrath  |  December 19, 2020

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How do you start a class action lawsuit?

There are a few things consumers should know about how to file a class action lawsuit. In order to start a class action of any kind, a person must have a cause of action that is shared by a significant number of others. The class action lawsuit is based on the old principle of strength in numbers and allows a large number of plaintiffs to bring legal action against a powerful defendant when individual lawsuits are not practical.

That said, the entire process begins with a single plaintiff or a small group (two to three) individuals who have suffered the same harm by the defendant.

Who Is Eligible to File a Class Action Lawsuit?

Virtually anyone with a valid cause of action can start a class action lawsuit, provided they meet certain qualifications. Primarily, this means the one who files must demonstrate a number of things, which are defined under Federal Rule of Civil Procedure Number 23:

  • Adequacy — Is/are the lead plaintiff(s) able to represent the class in a fair and adequate manner?
  • Ascertainability — In other words, can all potential plaintiffs be identified?
  • Numerosity — Are there enough plaintiffs to justify granting class status?
  • Commonality — Do all plaintiffs have the same cause of action?
  • Typicality — Is/are the class representative(s) typical of the other class members?

In addition to the above, the lead plaintiff(s) must prove the cause of action is serious enough to warrant the court’s involvement. Furthermore, the class representative(s) must be able to answer affirmatively to at least one of three questions raised under Rule Number 23(b):

  • would filing separate, individual lawsuits create a risk of inconsistent verdicts?
  • would a court order (injunctive or declarative relief without the involvement of a jury) be appropriate in light of the cause of action as it relates to all class members?
  • are there common questions of law that would make a class action preferable to individual lawsuits?

Any injured party who can meet the above requirements is eligible to start a class action lawsuit.

How Many Plaintiffs Are Required to File a Class Action Lawsuit?

How to start a class action lawsuitThere is no hard and fast number. A class action may be started by one individual, or a dozen. All that is necessary is that all potential plaintiffs have the same cause of action, i.e., the same specific complaint against the defendant. The one who initially files the class action typically becomes what is known as the “lead plaintiff,” and will have many additional responsibilities — but that person also gets an extra share of any settlement, provided the class action is successful.

 What Happens After a Class Action Has Been Filed?

Once the papers have been filed, the case goes before a judge, who will review the complaint and determine whether there is a sufficient number of plaintiffs with the same cause of action as well as other factors. If the judge determines that the case has merit and there are enough qualified petitioners, s/he will allow the case to move forward.

Are There Financial Incentives for a Lead Plaintiff?

As noted earlier, the lead plaintiff is entitled to extra compensation for working closely with the attorney(s), attending all court proceedings and generally representing the other class members before the judge and jury.

How Much Does It Cost to File a Class Action Lawsuit?

Typically, there are no up-front costs to start a class action lawsuit. Once they have determined that the case is strong enough, lawyers who specialize in this type of litigation represent the class on a contingency bases, meaning they front all initial costs of filing and moving the case forward.

If the case ends in a settlement or a verdict in favor of the plaintiffs, the lawyer(s) take a percentage of the judgment (generally one-third). It is a risk for them as well as the lead plaintiff(s), because if the defense prevails, they receive nothing.

What If Some Class Members’ Complaints are Different?

If all plaintiffs’ cases are not identical, this is not necessarily a deal breaker. Such a situation is covered under Federal Rule of Civil Procedure Number 23(c)(4), which allows for the establishment of “subclasses.” Forming subclasses is appropriate under the following circumstances:

  • Some class members are seeking different relief than others — for example, some plaintiffs want the defendant to pay for health monitoring, while others are seeking monetary compensation
  • Some groups among the class members have slightly different, but related facts
  • There are groups from different jurisdictions with varying rules of evidence

While a class action can be sustained with a few subclasses, too many may result in a decision by the court to deny class certification  on grounds that “common questions [of law] do not predominate.”

How Long Does It Take to Resolve a Class Action?

There is no good answer to this question. While some class action lawsuits can be resolved in a few months, many of them go on for two years or more. It all depends on the strength of the claim, preponderance of evidence and the complexity of the case.

Ideally, lawyers on both sides will be able to negotiate a satisfactory settlement before the case goes to trial; this is considered the best outcome in most cases. The only drawback is that typically, when a defendant agrees to a settlement, they are not required to admit any liability or wrongdoing.

What Is the Difference Between a Class Action and Multidistrict Litigation?

While both involve multiple plaintiffs, the parties in a class action are legally considered to be a single plaintiff.  In multidistrict litigation (MDL),  plaintiffs share judicial resources and pre-trial procedures (such as discovery, expert testimony, etc.), but retain their individual lawsuits.

What Does a Person Need Before Approaching an Attorney?

Most lawyers and firms specializing in class action litigation offer free initial consultations, either in person, online or over the telephone. During this session, the lawyer will want to make certain that the claim is a valid  one, as cases deemed to be frivolous tend to be dismissed quickly.

One  should be prepared to provide documentation of the complaint (such as photos, receipts, etc.) before they start a class action lawsuit. The lawyer will then research similar past cases and attempt to learn whether or not any laws have been broken, and how many other people have been affected by the same kinds of issues.

Class action lawsuits can be filed in myriad areas, including civil rights, defective products, medical problems, false claims and more.

121 thoughts onHow Do I Start a Class Action Lawsuit Against a Company?

  1. Sharon Mitchell says:

    I would like to start a class action lawsuit against Sprint I’m owed monies after switching companies

    1. Dr. Walter Sims says:

      I would like to file a class action lawsuit against EA SPORTS (MADDEN23). For thr past several years, Madden has gotten worse and worse each season. This year (Madden23) has to be the worse if the worse. We (the guys that I play online franchises with) have lost several hours because our franchises have been deleted by EA SPORTS launching updates . They have promised time and time again they ve fixed FRANCHISE MODE but it keeps crashing. This game is broken (to say the least). They have an exclusive contract with the NFL which essentially makes them THE ONLY electronic Football game!!! We spend hours upon hours and MONEY on this game every season. We deserve much better by EA SPORTS.

  2. Nik P says:

    I would love to start a class action lawsuit against BPM music festival. They had to cancel their Costa Rica festival in January of 2022 due to Covid-19 restrictions in the country at that time, and they have not given out refunds. I am one of thousands of would be attendees who are out $350+ USD, and the company no longer responds to my emails. Despite this scam, they are already selling tickets for their 2023 Costa Rica festival and they are planning other festivals at different locations across the globe, including the US.

  3. Ms. V says:

    Hi. KeyBank is running a scam with the Key2Benefits Unemployment. My account was fraudulently accessed via multiple ATM withdrawals. I contacted the fraud department and after several attempts of them telling me they “couldn’t prove my identify”. I finally received a claim #. I later received a letter in the mail saying they would be refunding the money. Then I received a check in the mail for $16. I contacted them to ask what this $16 check was for and when will I receive the $7k+ they said they would be refunding? I couldn’t get a straight answer. Instead, I got the run around and was even told that Unemployment closed the account, so the money was given to them. I knew that was a lie because Unemployment had sent me a letter a few days prior, stating that KEYBANK closed the account. I decided to play devils advocate and called Unemployment. They confirmed what I already knew!! They only deposit money into the account, they don’t withdraw or take custody of accounts and they reiterated that KEYBANK closed the account. I called KeyBank and told them about my conversation with Unemployment. THEN the rep let me know that a debit card was issued on the account and the refund/$7K+ was withdrawn ONCE AGAIN via ATM over a series of days!! I was given the transaction dates and amounts and transferred to someone else. All in all I was transferred around for 2 hours before I got the dispute department, who would then tell me they couldn’t “prove my identity”. Once again I emailed my ID and waited. I reached out to KeyBank’s Executive office with my frustrations only to be treated like I imagined receiving transaction details from a KeyBank rep. I was told that, “the reps wouldn’t be able to see transactions to give me that information”. WHAT?! They then said they didn’t find any error on their part and concluded that “I” was at fault, so the $7K+ would not be refunded. Mind you they issued a debit card that I didn’t request to be issued!! Throughout the process, I was treated as though I was the criminal! I am mentally, emotionally and financially distressed over this experience with KeyBank, and I want my money back ASAP. I took a look on Consumer Affairs and saw that I was not their only victim. They need to be held accountable!!!!!!!

  4. Michelle Long says:

    Michigan Kia/Hyundai immobilizers, that could’ve prevented all of us mental/emotional stress, time, run around, grief, and added out of pocket expenses we couldn’t/can’t afford.

  5. A. W. ( Tony ) Bradley says:

    A major Auto Manufacturer converted thousands of customers lease agreements from normal lease terms to RENTAL terms without any notification to any of the lease holders. This resulted in a much larger pay-off at the end of the lease term for thousands which greatly increased the profits of the Auto Manufacturer.

  6. Scott Kilponen says:

    I would like to see a massive class action suit against the Biden administration. The destruction that Biden and his administration have done to this country is deliberate. It’s all by design. Millions of Americans are suffering financially from the policies of the current administration. 401ks and IRSs are being decimated. The destruction to the economy is having devastating effects on everyday Americans. Who else is with me on this?

    1. Bobbie says:

      I agree I’ve had to use funds from my ira & roth just trying to keep my head above water.

  7. Lucy Babaran says:

    If no lawsuit against Chase Bank yet , I would like to initiate one . There was unauthorized transfer of $ 30,000 from my savings and checking account last sept 14, 2021. Chase claims I was the one who did wire transfer through voice recognition . My phone was disabled on 9/14/21 when unauthorized transfer occurred . When I checked my T Mobile transaction history, there were 24 calls made to Chase Bank in 3 hours on that day my $ 30k was missing in my Chase bank account on 9/14/21. The funds were wire transferred to Bank of America in Arizona to a man I don’t know from Adam whose name provided by Chase is Jacob Groth .
    Everytime I followed up with legal of Chase , I am told they are still doing investigation on my case . It’s almost a year since the unauthorized wire transfer occurred and it’s only last Aug 26,2022 that they finally came up with a statement .
    Chase Legal dept claims they tried to get funds from Bank of America in Arizona and Arizona B of A said they don’t have funds to give back .
    I am sure there are others like me who lost funds in Chase Bank who gave up because Chase is coming up with unacceptable excuses .
    For those who have similar incidents or can’t get their funds back from Chase , please contact me at 818 923 7970 so we can initiate class action lawsuit against Chase . This has caused me mental and emotional trauma and stress because of continued denial of Chase for almost a year this coming 9/14/22. Thank you .

  8. Regina Duncan says:

    Paypal is ripping people off. Charging late fees for payment already made. Even thier credit card statements reflect the payments and then added back on and charged a late fee. My daughter had over $200 in fees over 1cent which she paid. How many others are there?!

    1. Matthew Barte says:

      PayPal and Venmo, which are the same company are actively engaged in illegal behavior to which they steal lie deceive and create false transactions to do exactly what you’re stating I have lots of evidence to back that up they have been robbing me blind for years now I am fully prepared to join anyone who wants to find restitution with this and go after them with a class action lawsuit that will hopefully bring them to the ground and shut them down permanently. They are criminals. They are thieves they have programs in place to actually steal money from people, and they don’t do it to businesses or anyone that would have the money to go after them legally, they rob the poor they they steal from their customers that don’t have the money to follow up with lawsuits and that is how they became so big and rich so please contact me if you really would like to discuss getting together on a class action lawsuit against both those companies they have done the same to me and worse worse! You can reach me at meb99803@gmail.com I have evidence that proved not only are they changing their books, changing peoples transaction dates and times, but I also caught them putting in transactions onto my account that never happened and they don’t exist and never would exist just so that they could throw me into the negative and charge me and I have it backed up and triplicate ! It is undeniable irrefutable evidence that they are criminals, and should be prosecuted to the fullest!

  9. Amy Boone says:

    Can I start a lawsuit claim against state farm for ripping me off over half of what my vehicle was worth from a total loss auto claim?

  10. Amy Boone says:

    Can I start a lawsuit claim against state farm for ripping me off over half of what my vehicle was worth from a total loss auto claim?

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