How does a class action lawsuit differ from a class action arbitration?

Class action lawsuits and class action arbitrations are two different types of cases that can be brought by a group of people to seek damages or resolution for a shared grievance. In a class action lawsuit, an individual or small group of people are named as the plaintiffs in the case and they file a lawsuit against the defendant. The class action lawsuit is then heard in court, where evidence is presented and the judge makes a ruling on the case. Class action arbitration, on the other hand, is an alternative way of resolving disputes between two or more parties. This type of dispute resolution does not take place in a courtroom, but rather in a private setting with an arbitrator. The arbitrator listens to both sides of the argument and makes a decision based on the presented evidence. Unlike a class action lawsuit, the decision made by the arbitrator in a class action arbitration is binding and cannot be appealed. The primary difference between a class action lawsuit and a class action arbitration is where the dispute is heard and decided. In a class action lawsuit, the case is heard in court, while in class action arbitration the dispute is decided by an arbitrator. Both types of proceedings allow a group of people to pursue their grievances in a unified manner, but the outcome of the case can differ depending on which method is chosen.

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