What is the difference between a class action and a collective action?

Class action and collective action are two types of lawsuits that allow a group of people to file a legal claim together against a defendant. The main difference between a class action and a collective action is who files the lawsuit. In a class action, a representative plaintiff, or group of plaintiffs, files a single lawsuit on behalf of numerous injured parties or potential claimants. A judge will then determine whether or not the claim should proceed as a class action. On the other hand, a collective action is an action brought by a group of people for the same purpose, but without a representative plaintiff. In Arkansas, collective actions can only be filed in certain cases where the parties have the same rights. Class actions are typically filed in cases involving mass torts or consumer fraud. For example, if a corporation is accused of misleading its customers about a product, a class action suit may be filed so that all of the customers affected by the misstatement can receive compensation for their losses. Collective actions, on the other hand, are usually filed in cases involving labor disputes, such as wage and hour violations. In both types of cases, the injured parties are usually awarded the same amount of money in the form of a damage award or settlement. However, the plaintiffs in a class action suit often share a larger award than those in a collective action due to the fact that the representative plaintiff files the lawsuit on behalf of all of the injured parties. This means that the defendants in a class action must pay a larger settlement or judgment than those in a collective action.

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What is the difference between a class action and a collective action?

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