A class action is simply the name for a lawsuit filed against an individual or organisation (who would be known as the defendant), which has been brought by one or more plaintiffs on behalf of a larger group (this is the ‘class’).
Are there different types of class action lawsuits?
Anyone can technically act on behalf of a larger group to bring about a legal class action and this could be for any number of reasons. For example, it might have to do with a product that’s been sold, i.e. product liability, or similarly, intellectual property.
Group Litigation Orders opt to issue individual claims managed jointly under a GLO, often using the same solicitor. This can be more rapid than the more old-fashioned process whereby multiple claimants each bring about a case individually, known as collective proceedings.
Opt-out claims are relatively recent and specify that the lawsuit can be brought about without the express consent of everyone involved.
Does it pose a risk to businesses?
Businesses that find themselves defending a class action filed against them can see their finances, brand or reputation rocked. Lawsuits such as these can damage their share price, too, as investors and customers might lose faith in the brand owing to the loss of reputation.
Getting the right support
Legal experts are equipped to provide specialist legal advice and, crucially, can identify and assist with the application for litigation funding to mitigate any potential financial risks of legal class action. Providers of litigation funding such as https://www.novo-modo.co.uk/litigation-funding can be worth their weight in gold by providing financial support and backing to those involved in class actions.
Experts in class action defence can assist organisations right from the beginning of the process, by negotiating settlements which suit both parties and being open to finding solutions to resolve the situation. They can also help with any public relations issues associated with the lawsuit.