What kinds of cases can be class actions?
Class action cases typically fall into five different areas: consumer
class actions, insurance class actions, employment class actions, product liability/personal injury class actions and securities class
actions.
Consumer class actions often are filed on behalf of consumers injured
by a company’s illegal conduct or practices, such as unfair, deceptive
or illegal charges on bills.
Insurance class actions often are filed on behalf of persons insured
by a particular insurance company, or by medical providers who have
submitted bills to a particular insurance company, and that challenge
the company’s illegal conduct or practices, such as improperly
reducing claims payouts.
Employment class actions often are filed on behalf of employees of a
company for a common claim, whether it is harrassment, discrimination
or other illegal practices.
Product liability/personal injury class actions often are filed when
an accident or a defective product injures a large group of people.
Securities class actions often are filed on behalf of investors who
have lost money due to a company’s illegal conduct, such as misrepresenting
key facts about the business or its finances which more than likely
drove up the price of the securities. Anyone who has purchased a company’s
stock during the class period becomes a member of the class.