Class Action - A suit brought by one or more individuals on behalf of themselves and all other persons similarly situated. In partnership cases, the action typically is brought on behalf of all limited partners who purchased partnership units during a given period ("Class Period") or who currently own partnership units.

How Class Actions Work

A class action is a lawsuit brought by one or more individuals on behalf of a class of all who have been damaged in a similar manner by the conduct of the defendants who are sued. The persons who begin the suit, referred to as the "named plaintiffs," ask the court to appoint them as representatives of the class. The named plaintiffs work with their lawyers, such as Chimicles & Tikellis LLP, to vigorously represent the interests of the class members in obtaining the appropriate financial or other redress.

Once the court determines that it is proper for the suit to proceed as a class action, the members of the class are notified of the suit. Most often, any person who does not wish to be a member of the class is given the right to exclude himself or herself from the class. If the attorneys are successful in obtaining a settlement for the class, the members of the class are notified of the settlement and given an opportunity to voice their opinion on the adequacy of the settlement.

The court then holds a hearing to consider the merits of the settlement and will approve the settlement if it is fair, reasonable and adequate. The court also rules upon any applications for attorneys fees, of which the class members are also notified and given an opportunity to be heard. If the court approves of the settlement, the settlement amount, less any attorneys fees and expense reimbursement allowed by the court, is distributed among qualifying members of the class according to a formula approved by the court.

Why Bring A Class Action?

Class actions exist to enable the claims of hundreds or sometimes thousands of individuals to be prosecuted efficiently in one proceeding. Often the claims of individual class members are too small to make it feasible for them to pursue their claims on an individual basis. Even if an individual's claim is worth several thousands of dollars, it may cost far more than that to pay the legal fees and expenses of suit that would be required to obtain relief. However, by bringing a class action, and by being represented by lawyers who work on a contingent basis, many people having small claims of their own can seek redress in a single proceeding for the wrong that has been done to the entire class. Even wrongdoing that results in only very small damages to any one individual can give rise to very large damages, possibly in the millions of dollars, where it is carried out against a large class of persons.

 

 

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