Class Action

A lawsuit where one or a few people sue on behalf of a large group of people who all have the same legal claim.

A class action is a type of lawsuit where one person or a small group of people (called “class representatives”) files a lawsuit on behalf of a much larger group (the “class”) who have all been harmed in the same way by the same defendant. Instead of thousands of people filing individual lawsuits, the claims are combined into a single case, which is more efficient for the courts and can give individuals with small claims access to justice they might not pursue on their own.

In Minnesota, a court must “certify” the class before the case can proceed as a class action. The court considers whether there are enough people with similar claims, whether the issues are common to the group, and whether a class action is the best way to handle the case. If you are a member of a certified class, you are automatically included unless you opt out. If the class wins or settles, each member receives a share of the recovery.

Why it matters: Class actions allow ordinary people to hold large companies accountable for widespread harm. Even if your individual loss is small, a class action can make it worthwhile to pursue. If you receive a class action notice in the mail, read it carefully — it affects your legal rights.

Example: A cell phone company overcharges 50,000 Minnesota customers by $15 per month due to a billing error. One customer files a class action lawsuit on behalf of all affected customers. The case settles for $4 million, and each class member receives a refund of their overcharges.

When you might see this term

Consumer fraud cases, defective product cases, employment discrimination, data breach notifications

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