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

A class action and a collective action are both types of lawsuits in which a group of people who have been harmed in some way by the same company file a lawsuit against that company together. The main difference between them is the parties involved and their legal requirements. A class action is a type of lawsuit in which a large group of individuals who have been affected by the same issue sue the same defendant. The lawsuit must represent the interests of the entire class and requires that a representative of the class be chosen to lead the lawsuit. The legal requirements for class actions vary somewhat by state, but in California, all members of the class have to have similar damages or injuries and all must have agreed to a common course of action. On the other hand, a collective action, sometimes referred to as a "multi-district litigation" (MDL) is a type of lawsuit in which a group of individuals who have been affected by the same issue sue the same defendant. Unlike class action lawsuits in California, collective actions do not require all parties to have similar damages or injuries and each plaintiff can decide how to proceed separately with their claim. Additionally, collective actions are typically overseen by one judge or court, whereas class action lawsuits are overseen by many different courts. In summary, the main difference between a class action and a collective action is the parties involved and their legal requirements. Class action lawsuits require the members of the class to be similar in all respects, whereas collective actions allow for each plaintiff to pursue their own claim.

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

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