Class Action News

Protecting Consumer Interest In Class Actions

Class actions can be an effective way to remedy consumer injury and deter corporate wrongdoing. Rolling individual injuries into a single legal action can vindicate consumer rights that might otherwise go without remedy. And the class action device can enable the private bar to seek resolution for some problems that government consumer protection agencies may not have the resources to pursue.

Sometimes, however, class actions do not serve the goals for which they were created, and the interests of private class attorneys and defendants appear to merge to the detriment of the class members. Class members may be offered coupons or other benefits without clear and complete information to judge their value, while defendants obtain broad releases and class counsel receive generous fees

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	Did You Know?
	Class action lawsuits has many advantages. Class action lawsuits may offer a number of advantages because they aggregate a large number of individualized claims into one representational lawsuit. First, aggregation may increase the efficiency of the legal process, and lower the costs of litigation. Second, a class action ensures that a defendant who engages in widespread harm -- but does so minimally against each individual plaintiff -- must compensate those individuals for their injuries. Third, in "limited fund" cases, a class action ensures that all plaintiffs receive relief and that early-filing plaintiffs do not raid the fund of all its assets before other plaintiffs may be compensated. Finally, a class action avoids the situation where different court rulings could create "incompatible standards" of conduct for the defendant to follow.