a suit brought by one or more members of a large group of persons on behalf of all members of the group. If the court permits the class action, all members must receive notice of the action and must be given an opportunity to exclude themselves. Members who do not exclude themselves are bound by the judgment, whether favorable or not.
EXAMPLE:
In accordance with securities law, a corporation files a registration statement with the Securities and Exchange Commission concerning a stock sale. After investors buy several million shares of stock and a few years pass, the corporation files for bankruptcy. At that point, a few of the investors realize the statement was false and misleading. Those investors, on behalf of all investors of the corporation, file a class action lawsuit seeking to recover the money they originally paid for the stock.
"A plaintiff who brings a Title VIIaction on behalf of a class must satisfy two prerequisites: (1) the named plaintiff must have standing to bring the claim, and (2) the requirements of Rule 23 must be fulfilled. See Griffin v. Dugger, 823 F.2d 1476, 1482 (11th Cir. 1987). "
Congratulations! You're now booked up on what Class Action means!
You'll probably need to reference a legal glossary during your pursuit of justice.
