Almost all of
us have, at one time, received notice from the courts that we
are a member of a class action lawsuit, and have wondered,"
what does it all mean; what is the best course of action for us
to take; what do I stand to gain or lose if I take one action
or the other; and where can I get information to help me make
an informed decision?". Not knowing the answers to the above
and other questions, our normal course is to throw the notice
in the trash and forget the matter. This is normally not the best
action to take; and in this site, I will try to show what other
actions are possible and should be considered.
The purported purpose of class action law suits
is to give the common man the ability to take on the largest corporate
or private entities (who can afford the very best legal services)
and have a chance of redressing the wrong done by these entities.
It is important to remember that even though the actual damage
or cost to the indivdual class member may be small, the illicit
gain to the corporate entity can be huge if done to hundreds or
even hundreds of thousands of class members.
Class actions are, in reality, normally structured
to benefit three parties. These parties are 1) the attornies--on
both sides; 2) the court; and 3) sometimes the original class(proponents).
That the attornies on both sides are going to make money is obvious.
What is not always obvious is that the two sides are not always
advisaries. As there are several large firms that do a large percentage
of all class actions, what often happens is a firm which has filed
a class action against one company in a particular industry often
ends up filing against other companies in the same industry that
have committed the same offense.
This is often not as advisarial as it at first
may seem because the other companies think--" company A was
caught; case law was established; the original firm has all the
research, depos, etc.(which are often not public by order of the
court or agreement of the parties); and we better go to that firm
and make the best deal possible (agree to pay large attornies'
fees and get out as cheaply and quickly as possible before someone
comes after us on their own. These are often done by the same
attornies on both sides, on a very short time frame, and sometimes
in the same court as the original case). Remember, once they get
past the "opt-out" date and class members are locked-in
and all the companies past sins are wiped out by the court ordered
judgement (which is normally agreed to by the parties).
|