A “class action” lawsuit is a lawsuit that is filed on behalf of a group of similarly situated people. A class action is often appropriate when the individual harm for each class member is relatively small, but the overall harm across all of the members of the class is significant.
For example, if a mortgage servicer systematically charges hidden fees to borrowers without disclosing them, the individual harm might be a few hundred (or even thousand) dollars, but the class-wide injury could be in the millions. Likewise, a price-fixing scheme could inflate the price of a product by a few dollars, but result in several million dollars of illegal profit to the offending company. Additionally, some state and federal statutes allow treble damages or statutory damages of a certain amount for each violation.
Our law firm has extensive experience with class action lawsuits. If you believe that you have been harmed as a result of a widespread and unlawful practice, contact us for a free consultation to discuss your potential case.