How does a class action lawsuit work?

A class action lawsuit is a legal proceeding in which a group of people collectively bring a claim against a single defendant. In the state of California, a class action lawsuit can be filed if multiple people share a common complaint stemming from the same event or transaction. The first step in a class action lawsuit is for the named plaintiffs, usually a few individuals, to file a complaint. This document outlines the legal claims of the group as a whole and details the defendant’s actions which are being challenged. This complaint is then served to the defendant and the court reviews the claims to determine whether the class action certification requirements are met. Once the court approves the lawsuit as a class action, the group is given a certain amount of time to notify potential class members of the existence of the class action and the right to Opt-In or Opt-Out of the suit. Opting-In means joining the class action, while Opting-Out means removing oneself from the class action. Those who do not Opt-In or Opt-Out will be considered part of the class action suit, unless they meet certain criteria that allows them to Opt-Out even if they never received notice. If the judge rules in the favor of the class, all potential class members will be entitled to the settlement. Each class member may receive a specific amount, or a percentage of the settlement depending on the court’s ruling. If the court rules in favor of the defendant, no class members will receive a settlement, and the class action suit will be discontinued.

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How does a class action lawsuit work?

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