What is the purpose of class action lawsuits?
Class action lawsuits are a crucial mechanism in the American legal system for taking large cases forward. These lawsuits involve one person, typically a plaintiff, representing a broader group of individuals who have potentially suffered similar injuries. A professor at Northwestern Pritzker School of Law, Zachary Clopton, cited an example of a significant class action lawsuit that resulted in the historic Brown v. Board of Education ruling that declared segregated schools unconstitutional. In this case, teachers from Topeka, Kansas, represented their Black students and all other Black students nationwide who were not allowed to attend white schools.
The primary kind of class action lawsuit aims for monetary compensation where a corporate defendant is sued, yielding damages if a legal injury is identified. This approach is necessary when many individuals suffer small injuries, like being overcharged by $20 in a bank fee. It would not make sense for each person to file a lawsuit individually due to the cost outweighing the return. However, when hundreds of thousands or millions of customers can come together in a class action lawsuit, the case’s viability increases, offering the potential for sizable recoveries.
The purpose of class action lawsuits is rooted in the American legal system’s reliance on private lawsuits to address legal injuries. While other countries bring lawsuits for corporate damages and data breaches too, these legal actions are typically initiated by the government. The benefit of private lawsuits is that they do not necessitate taxpayer money and allow private attorneys with private motivations to pursue the best cases. Nevertheless, such lawyers may sometimes prioritize their profit over assisting clients, signifying a fundamental aspect of the American legal system’s design.
Government-initiated class action lawsuits are still possible in the American legal framework, where federal and state authorities can bring legal proceedings on behalf of a substantial number of people or the general public. For example, the Tobacco Master Settlement Agreement in 1998 was established by 46 states and private plaintiffs to seek damages related to tobacco products’ harmful effects. The government also intervenes with cases concerning environmental damage, pollution, and antitrust matters that safeguard fair competition benefiting consumers. Presently, the Department of Justice is pursuing a lawsuit against Google’s parent company, Alphabet, for allegedly maintaining a monopoly in the internet search market.
