Class Action Lawsuit Analysis

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If a claim will result in a potential recovery that is so low that one plaintiff may not find it worthwhile to pursue due to the expense and effort required it may be a good candidate for a Class Action Lawsuit. In these types of suits, many people with a common cause join together to file suit. Suits of this type are allowed when (1) The group share common questions of law that can be settled in the same suit, (2) it is not possible for the group members to bring the action individually, and (3) it is seen as a better approach than requiring the plaintiffs to file separate suits. Unfortunately, class action lawsuits are easy to abuse (Brown). The 2005 Class Action Fairness Act (CAFA) and the Private Securities Litigation Reform Act (PSLRA)

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