Class action lawsuits are used all across the country to help groups of people who have suffered a similar circumstance to get compensation and redress from companies who produce defective products, commit fraud or otherwise wrong them. When used correctly, class action lawsuits can reap great results for people and also keep companies from being dishonest. It is a simple “checks and balances” system that works in a capitalist society as well as it works in a democratic one.
Class action lawsuits were introduced as efficient methods to litigate against securities fraud and other stock fraud where individual complainants would not have the financial stake to seek redress on their own, but as a group could seek redress together with minimal outlay of cash. Today class action suits are filed in all manner of situations including toxic exposure like Asbestos, defective drugs like Vioxx or even to seek improved benefits from FEMA in the case of a class action lawsuit filed on behalf of victims of Hurricane Katrina.
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