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How do you benefit from a class action lawsuit?

On Behalf of | Feb 4, 2022 | Business Litigation |

Most Fayetteville area residents have heard of a class action lawsuit. They may have seen them on the news or may have received a notice that they are eligible for compensation because of a class action lawsuit. But what is a class action lawsuit and how may you benefit from one?

Class action lawsuit

A class action lawsuit is a lawsuit in which one person makes a claim and sues a company or organization on behalf of a large group of people who have similar claims. It is beneficial for the court system as well as they only have to manage one lawsuit where it would be otherwise unmanageable if each individual filed a complaint.

Why file a class action lawsuit?

When you are able to combine a seemingly small claim with a large group of people there can be more opportunities. There are a variety of reasons why you would file a class action lawsuit including:

  • Breach of contract
  • False advertising
  • Illegal business practices
  • Defective medication
  • Defective product
  • Employee discrimination

Benefits of a class action lawsuit

When you file a class action lawsuit it can be cheaper than filing an individual claim. This is because all plaintiffs split the costs evenly. Many times, plaintiffs will also pay on a contingency fee basis which means there are no fees unless they win the case. Plaintiffs are also able to make sure their voice is heard, and a company is held accountable. A legal professional who is skilled in class action lawsuits can help their client understand if a class action lawsuit is right for them and how to proceed.