What is a reverse class action lawsuit?
A reverse class action lawsuit is a type of lawsuit filed by a class of people seeking a court order for payment from the defendant. This type of lawsuit is different from a traditional class action lawsuit, which is typically used to seek damages from a company or institution for wrongs committed against a group of people. In Washington, a reverse class action lawsuit is when a group of people, known as a class, join together to sue a company or institution for an amount of money they believe is owed to each of them. A defendant—the person or company being sued—is usually an organization or institution that collected money from members of the class but failed to adequately deliver on its promise. The class must show that each member of the class suffered the same kind of injury. This means the class must provide evidence that the defendant owed the same type of money to all members of the class, even if the amount of money owed to each member is different. Typically, reverse class action lawsuits are filed by attorneys representing a group of people who have been wronged. The lawsuit will ask for an order from the court to make the defendant pay the agreed-upon amount of money to each member of the class. In some cases, the court may also order punitive damages to be paid to the class in addition to the amount owed.
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