Class action lawsuits are usually the best way to go against big corporations or institutions. These lawsuits were very popular in the past because they were able to bring about major changes in a corporation. However, in today’s world, class action lawsuits have almost become obsolete. This is because class action lawsuits are known to be time consuming and costly. Also, these lawsuits are not very successful at times. Most of the times, the claims that people make in class action lawsuits against big business corporations are not very genuine.
In order for a class action suit to be acceptable by the court, the lawsuit has to have certain characteristics.
For instance, a lawsuit has to have a legitimate claim to being harmed or about to be harmed. It also has to have enough plaintiffs in it to give the court a reason to believe that the defendant is actually guilty of the claims that people bring forth. The amount of people who have to join in the lawsuit has to be large enough to make individual lawsuits possible, which means that class actions will only become useful if the number of members in the class is very large. In addition to this requirement, the number of members in class actions against big business corporations has to total around 10 or more.
The reason as to why class action lawsuits against companies are ineffective is because fraudulent lawsuits are almost nonexistent.
In this case scenario, one plaintiff becomes interested in filing a fraud lawsuit against a company. The attorney then approaches a class of attorneys with the same lawsuit. The attorneys all agree that the claims made in the lawsuit are valid; however, it will be up to a judge to determine if the plaintiff has a case that he can actually win. There are even cases where the attorneys involved decide to try and settle out of court, which means that fraud victims will not receive any sort of settlement.
After the law firm has decided to proceed with a lawsuit, the first step that follows is for the law firm to contact a class representative.
The proposed class representative then goes over the details of the lawsuit with the attorneys. Once the proposed class action lawsuit has been written, the law firm then approaches the company to set up a meeting. During this meeting, it is expected that both the plaintiff and the defendant will present their side of the story. If the company refuses to enter into a class action suit against it’s competitors, there is no reason for the company to cooperate with the lawsuit.
Class action lawsuits are usually brought on behalf of small businesses or individuals who have been cheated out of their rightful profits by large corporations or organizations.
People who file class actions lawsuits do so in an effort to gain back what they were supposed to receive. Most common claims in class actions happen to include health care benefits, retirement plans, discounts on products or services, or loans that are based on an individual’s credit rating. In the past, it was often difficult for people to recover compensation from major corporations that had been found to have committed fraudulent acts.
Recently however, with the rise of new technology and the internet, it has become much easier for small businesses to bring legal suits against the likes of McDonalds, KFC, or Dunkin’ Donuts.
The rise of these examples of class action lawsuits against large corporations has also created a new loophole in the laws governing consumer lawsuits, allowing small businesses to go after the proverbial big business. This new breed of smaller-business litigants has been referred to as “ambulance chasers”. In many instances, ambulance chasers will pick up a client at the side of the road who feels that he or she has been wronged by a large corporation. Once these lawyers have obtained a settlement against the big business, they then use their threat of bankruptcy to extract a huge pay-out from the company.