‍ What is a class action?

A class action is a lawsuit in which at least one person or business sues on behalf of a larger group that allegedly suffered the same injury. The active plaintiff in a class action is known as the “named plaintiff” or, following class certification, the “class representative.” Only the named plaintiff actively participates in the lawsuit. The vast majority of class members are absent from the proceedings and will participate only to the extent they choose to opt out following court-approved notice of the lawsuit. If the class is certified and the named plaintiff obtains a favorable result, the entire class stands to recover.

What happens after a class action has been filed?

The answer depends partially on the type of class action that has been filed. A class action is simply a procedural device enabling the aggregation of a large number of identical claims, and a wide variety of substantive claims may be brought in the form of class actions. The Dosaj Firm, APC has experience in employment and consumer class actions.

Motion to Compel Arbitration. The first line of defense against a class action is often a motion to compel arbitration. If the named plaintiff has agreed to arbitrate their claims, the class action may be dismissed entirely. Even if the named plaintiff did not directly agree to arbitration with the defendant, it is possible that such an agreement was signed with a third party, of which the defendant may be the beneficiary. However, the fact that a class action has been filed suggests that the named plaintiff’s counsel believes a valid defense to arbitration exists.

Discovery. Class action discovery may be burdensome for defendants because it implicates documents and information concerning a large group of class members, not just the named plaintiff. This means that large amounts of data will need to be collected, potentially with the assistance of experts. To minimize this burden, the defense may seek to limit the scope of discovery prior to class certification or to produce sample data.

Apart from document production, class action defendants should expect one or more executive or management-level employees to undergo depositions as counsel for the named plaintiff attempts to obtain information favorable to their case.

Pre-Trial Motion Practice. A class action typically involves several pre-trial motions, which may concern the named plaintiff’s individual claims or, following class certification, the class’s claims. If the claims are deficient on the face of the complaint, a motion to dismiss may be appropriate. After discovery has progressed, a summary judgment motion may also be filed in an attempt to avoid trial.

Class Certification. The motion for class certification is a major milestone in the progress of a class action and may follow months or years of discovery and pre-trial motion practice. Until the case is certified as a class action, it remains an individual action and the rights of the absent class members are not implicated. Certification requires that the plaintiff prove the case is suitable for class treatment by demonstrating that several elements are satisfied—numerosity, commonality, typicality, adequacy, predominance, and superiority. These requirements are ensure that it is fair for the case to bind the absent class members, whether its ultimate result is favorable to them or not.

Should the court grant class certification, notice to the class members must be provided. Their contact information will typically be provided by the defendant to a third-party notice administrator. The notice, whether by mail, email, publication, or other means, will inform class members of their right to opt out of the class action and pursue their case against the defendant individually.

Settlement. The vast majority of class actions resolve via negotiated settlement. The parties may employ experts to calculate the value of the case, meaning the total dollar amount of damages available to the plaintiff. The settlement amount will be a percentage of that value.

Court approval of the settlement agreement is mandatory if it is to bind the absent class members. The settlement approval process may consume several months, as it involves a preliminary approval hearing, notice to the class members, and a final approval hearing.

Trial. While rare, a class action may also resolve in a trial. A class action trial proceeds much like the trial of an individual case. Witnesses are called by both sides, evidence is presented, and a judge or jury decides the outcome of the case. Because class certification will have likely occurred by this point, the trial’s outcome will bind the absent class members who did not opt out.

Appeal. A class action may involve one or more appeals. If the case is dismissed before trial as the result of a motion brought by the defendant, the plaintiff is likely to appeal the adverse ruling. Depending on the jurisdiction, orders regarding arbitration and class certification may be appealed. In high-stakes cases, class members objections to a class action settlement, even if approved by the court, may also generate appeals.

For more information, please contact attorney Tyler Dosaj at tyler@dosajfirm.com or (213) 310-1905.

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