Class Action

A class action lawsuit is filed on behalf of a group of people who have been in some way injured by the actions of a company. It is common to see class action lawsuits filed by members of the company if hiring or salary practices have been illegal. Another type is the class action lawsuit filed against a drug company for making illegal claims about their product, or for causing deaths or physical damage to those taking the drug.

Awards from a class action lawsuit are split into two portions: punitive and compensatory damages. Compensatory damages are meant to address the defendants (those being sued), and direct damage. These funds will be used to address actual damages caused by the defendants, such as illness, loss of life, and/or pain and suffering. Punitive damages from a class action lawsuit are a form of punishment for the company committing illegal acts or causing harm. Punitive damages in large class action lawsuits can be particularly high when it is demonstrated the company has shown great disregard for the health, safety or emotional well-being of the plaintiffs.