Class Action Lawsuits

A class action lawsuit is filed on behalf of a group of people who have been injured by the actions of a company. It is not unusual to see class action lawsuits filed by members of the company. Another type is the class action lawsuit filed against a drug company for making illegal claims about their product. Also when deaths or physical damage arise due to taking the drug.

When someone joins a class action lawsuit they usually have to sign papers declaring that they forfeit the right to sue the company as an individual. A successful class action lawsuit awards damages to the plaintiffs according to greatest damage. In most cases not all members of the suit are entitled to equal compensation.

Usually the attorneys work on a contingency fee basis, which means that they will receive a portion of the award but not charge their clients if the suit is not successful. That portion can be high sometimes between 30 to 50 percent of the total award.

Awards from a class action lawsuit are split into two portions: punitive and compensatory damages. Compensatory damages are meant to address the defendants, those being sued, and direct damage. These funds will be used to address actual damages caused by the defendants, such as illness, loss of life, and/or pain and suffering.

Punitive damages from a class action lawsuit are a form of punishment for the company committing the illegal acts or causing harm. Punitive damages in large class action lawsuits can be particularly high when it is demonstrated the company has shown great disregard for the health, safety or emotional well being of the plaintiffs.