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. Michele says:

    Over 60 previous employees were bullied, harassed, not paid bonuses, not paid when company computers were not working and having to wait on new equipment to be sent out which took weeks in some cases. Not paid promised bonuses, fired while on FMLA or a LOA! Numerous agents hours cut to 32 hours being told not enough work, while the company hired new employees for same job getting 40+ hours making 2 dollars more an hour. Stressful work environment and if you were under medical care they termed you.

    1. Nancy says:

      What company is this?

      1. Michele says:

        Advanced Call Center Technologies

  2. Crystal Denison says:

    I would like to start a class action against Facebook. This week I was notified that my post went against community standards and notified that I was posting child sexual exploitation and that I was also reported to the center for missing and exploited children. I attempted to make contact with someone immediately and sent two emails, neither responded. Once I was allowed to post again, I posted my concern and frustration and learned that at least two other of my friends received this same message and were blocked. This is a disgusting allegation by Facebook! How dare their automated or incompetent staff make such allegations! Never have I posted anything even close! I have been blocked from posting for going against community standards for sharing a recipe and many other things. This type of allegation is mentally and characteristically harming! I have reported posts that were of children and received notice that it did not go against their standards. What is going on!

  3. Jose luis Flores says:

    Would like to open a case on chime for denying Mt dispute two time s already. I don’t even think investigate at all…..

  4. Georgetta Potts says:

    There is a lady name Elle from smart alarms security company that calls my home none stop every day from different numbers despite being told my number is on a do not call list. And even asking to be placed on the company’s do not call list. She still calls over and over again. And I know that this is a violation of my rights. I wish to file a claim against this company for failure to comply with the do not call policy laws set up in this country and seek retribution. Today she called me from a (803) 442-8568 number at 9:42 am. And she will continue to call me from this number today over and over again and tomorrow she will call me from a new number. I want a security system from “Smart Alarms” nir did I ask for this company to contact me. And despite them being constantly told to stop calling. They keep calling. Help me please.

  5. rhonda stevens says:

    I would like to know if there may be legal reasons to file a lawsuit against The Cook County Government for the cost of Healthcare Insurance for its retirees.

  6. Catherine Rousseau says:

    was wondering about those loan finders on line, at first I started filling application. Then I get another fill out thousand in my email, all promising loan has been approved! I have enter my bank information and all personal data! Don’t here back! No email response nothing! Then I started reading the bottom, where it states there not a lender! So I’m just filling out information all over the place! Not getting nowhere! I have quite few now in my email!! Then I have one I sent all my information in and it was scam … that was one from loan finders! I sent bank statements and to them!! Then the guy told to go to Walmart to do something and then take it deposit in my bank account!! Omg I call and sent email and wrote to my bank! Then here’s some other words they used.. your loan has been approved, prefilled app? What? now you still have to fill out! Please it need to put a stop to this information passing around to who??? I have emails showing how I sent info in never received reply after inquiring about the loan! Walmart incident I still have that email !! I even received calls regarding approved loans, I ask them are you a loan finder oh no I send email.. he said yes! I’m not looking for no loan finder! It ridiculous!

  7. Ladonda Maxey says:

    I would like to start a class action law suit against the Insurance Company called First Chicago, they except any and everyone almost and they don’t run MVRs until you file a claim. When you do file a claim they find ANYTHING they can use against you to not pay out. All you have to do is look on Yelp or the BBB and you’ll see they have NO GOOD REVIEWS. They are a scam and they completely ruined my life by not paying out for my car accident. I had them for a year and paid my premium faithfully , even renewed my contract in October and got into a car accident in March of 2023 and could not get ahold of anybody finally after 3 weeks I found out who my adjuster was and she sent someone to asses my damage and the ONLY TIME she called me was to ask me about an unrelated fender bender u had gotten into . They tried to say I lied which I didn’t, I asked for the recordings and they said I couldn’t hear them after us going back and forth about whether there were recordings. The supervisor of claims yelled at me in the phone and called me a liar over and over and when I asked him if there were recordings he said no , but when I called the agent she said there was. Then the next day all of a sudden he says there are recordings but I’m not aloud to hear them. Then I ask him why this misrepresentation wasn’t caught during ubderwring or during the MVR and his response was “ we don’t run MVRs because we should be able to trust our clients. Which when I told other insurance agencies about this they laughed and said a judge would immediately ask him if he ran an MVR and when he said no they would tell him to pay me. And in such cases where a mishap was to happen they’re supposed to charge me for the premium they would’ve charged which was only $30 more a month I still would’ve went with them and gladly paid. Instead because my car was worth 22 thousand dollars and the other woman’s was damaged at 8 thousand they decided to deny my claim and rescind my policy. Even the insurance agent was like they are are being really extreme . She was the one who checked all the boxes so she’s the one who checked no when I said yes. I KNOW I said yes because I wouldn’t lie to an INSURANCE COMPANY! In normal cases you can’t even lie to an insurance company because they will just run an MVR and catch the lie so there’s no point in even trying! And if you get into an accident with someone who has first Chicago they won’t pay out to you or they will lowball you. I personally know 10 people just myself who First Chicago has screwed over. They do the same thing , they take your premiums , they act all nice until you file a claim and then they’re hard to get into contact with, they won’t give you and answers or information they will do anything they can do to not pay out and if your lucky and do get them to pay it’s only a couple thousand or it’s because it’s the other guys fault so they get as much as they can for themselves. They do post claims underwriting and that should be ILLEGAL! They did no investigating into my claim what so ever they let the other company handle it and wen by what they said instead of fighting back . My accident happened in a parking lot with no stop or yield signs and there was a significant blockage of my view due to a bush and a giant electrical box . It blocked the other persons view as well . They didn’t argue or none of that they just completely disregarded all due diligence. They acted in bad faith and they need to be shut down. I mean they literally ruined my life , my truck sat in my driveway for 5 months , I had to voluntarily have it repossessed, I lost my job over the depression I went through and was out on anti anxiety and ptsd medication , before I lost my job I got another car which ended up being a complete lemon from this dealership called Champion Chevrolet . So I lost that car too but not before the engine blew on me . I’ve ruined my credit because of this I mean my life is destroyed because they didn’t provide me the insurance I paid them for each month for a year. Then they send a fake paper saying my insurance was denied in October when I have the chase bank statements where I pay them each month until March of this year . Then the agent tried to renew my contract after the supervisor had denied my claim and rescinded my policy. I’m telling you they are a scam business and I want the shut down!

  8. Jacquelyn "Jackie" Ward says:

    A class action needs to be started against Drop Technologies Inc. (Drop App). Since their bank (SVB) crashed, the drop app has been falsely adevertising that they offer gift cards for allowing them to access your financial information through linked debit cards and bank account, playing games, and taking surveys through their app. Based upon my own experience, and hundreds of others, this is no longer the case. Therefore, they are accessing thousands of peoples financial information and not providing gift cards as promised in their ads and on their app. This is not right, and I don’t believe it is legal either!!! I believe that they should be penalized and people should be compensated for this!!! Drop Technologies Inc should not be able to promise one thing and do another!

  9. Isidra Grant says:

    I would like to start a class action against a company called Passion App. They have consistently charged me for subscription services when I have not signed up for a subscription with their company. Based on reviews of the app, this seems to be a trend for the company to have fraudulent charges on people’s banking accounts.

  10. CG says:

    Greetings, seeking advise on class action suit against wireless carrier AT&T for providing false information on billing, service agreement, etc.

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