A class action is a lawsuit filed in state or federal court by a person, business, or small group who share a similar legal claim with a large number of other people, businesses, or groups. An example of a class would be all individuals who purchased a defective product and were similarly harmed by the product. If a court determines that the person or group who filed the lawsuit adequately represents the interests of the entire class of people injured by the wrongful conduct or negligence of the defendant (such as the manufacturer of a defective product), they can be “certified” as a “class” allowing the lawsuit to proceed as a class action. Once the lawsuit has been resolved by way of a settlement or verdict, all the members included in the class are bound by the outcome unless they affirmatively opt-out of the settlement.
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