What is the difference between a class action arbitration and a class action lawsuit?

A class action arbitration and a class action lawsuit are both legal processes designed to resolve disputes involving a group of people, but they differ quite significantly in how the dispute is handled. A class action lawsuit is a legal action where a group of people, often referred to as “the class”, join together to sue a defendant. The representative of the class, called the class representative, typically files a complaint on behalf of the class. The lawsuit is handled in a court of law and a judge or jury will decide the outcome. In contrast, a class action arbitration is an alternative form of dispute resolution where instead of filing a lawsuit, a group of people join a dispute resolution process called arbitration. The arbitration process is handled out of court and the dispute is usually resolved by a neutral third-party arbitrator. During the arbitration process both sides present their evidence, arguments, and witnesses to the arbitrator who will then make a decision on the dispute. Overall, the primary difference between a class action lawsuit and a class action arbitration is that the class action lawsuit is handled by a judge or jury in a court of law, while a class action arbitration is handled by a neutral third-party arbitrator usually outside of the court system.

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What is the difference between a class action arbitration and a class action lawsuit?

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