What is a class action lawsuit?

A class action lawsuit is characterized by a legal action where a group of individuals, known as the class, collectively brings a claim against a defendant. This type of lawsuit allows individuals with similar grievances against a common defendant, such as a corporation or government entity, to pool their resources and share the costs associated with litigation. The key aspect of a class action is that it addresses issues that affect many people in the same way, providing them with a means to seek justice where individual lawsuits might be impractical due to costs or logistical challenges.

In a class action suit, the claims must be sufficiently similar so that the group can be represented collectively. This mechanism is particularly powerful in addressing situations of widespread harm, such as consumer fraud or environmental damage, where individual claims might be too small to warrant standalone legal action. The outcome of a class action can establish precedents and lead to significant changes in policies or practices by the defendant.

The other options describe scenarios that do not align with the fundamental nature of class action lawsuits: a single plaintiff scenario or cases that do not encompass a collective group facing a common issue, as well as small claims courts that handle cases of lower value individually rather than collectively.