How Class Action Lawsuits Can Change the Law

Class action cases affect large groups of people. The outcome not only impacts the class members, but it can change the way businesses run, the law, and the court system itself. If you have questions about a class action case an experienced class action attorney in your area can help.

The Impact of Class Actions on Legal Precedents

Successful class action cases often result in broad changes that benefit the class members and the public. They can deter bad acts, remove defective products from the marketplace, and provide strong precedent for future class action suits or individual cases.

How a Class Action Case Works

Sometimes, a group of plaintiffs come together with similar claims and questions of law against the same defendant. Following class certification for class members, plaintiffs join in a single class action lawsuit. The court certifies the proposed class when it meets the requirements. For example, a class action case in federal court must meet the following criteria under Rule 23(a). They include the following:

• Numerosity
• Commonality
• Typicality
• Adequacy of representation

Under Federal Rule of Civil Procedure 23(b), in addition to meeting the prerequisites under Rule 23(a), the case must fall into the following categories:

• A separate lawsuit creates threat of inconsistent judgments
• The class is seeking injunctive or declaratory relief
• There are common questions of fact or law that predominate over individual ones, and a class action would be the best course for resolving the dispute

The class representative or named plaintiff must prove the case like in any other lawsuit. They work with the class counsel on behalf of other members of the class.

Landmark Class Action Cases and Their Outcomes

The following cases represent some of our nation’s most well-known landmark class action cases.

• Brown v. Board of Education (1954). This case involved the issue of segregation in public schools based on race. The lead plaintiff took this civil rights case to the U.S. Supreme Court, where it ruled unanimously that racial segregation in public schools was unconstitutional. This case was pivotal in the Civil Rights Movement, setting a precedent for challenging institutional racism.
• Tobacco Master Settlement Agreement (1998). These health-related lawsuits involved large numbers of people. It involved lawsuits against major tobacco companies for deceptive advertising and public health costs of smoking. It led to tobacco firms agreeing to pay the states over $200 billion over 25 years. The settlement transformed public health policies relating to smoking.
• Agent Orange Product Liability Litigation (1984). This class action litigation involved the issue of adverse health effects caused by exposure to Agent Orange, a herbicide used during the Vietnam War that caused personal injury. It resulted in an almost $200 million settlement for veterans exposed to the chemical and marks one of the first significant product liability class action cases. It also drew attention to environmental issues and health consequences of wartime actions.
• BP Deepwater Horizon Settlement (2016). This case addressed environmental and economic damages caused by the Deepwater Horizon oil spill in 2010. The class action settlement in this case resulted in a $20.8 billion settlement with the U.S. Department of Justice, addressing claims from local businesses, fishermen, and environmental restoration projects. It remains the largest environmental settlement in U.S. history.
• Volkswagen Dieselgate Settlement (2016). This class action lawsuit involved Volkswagen using software to cheat emissions testing. The company agreed to pay $14.7 billion to settle claims with U.S. consumers and the government. The options for claimants included vehicle buybacks, environmental remediation, and compensation to owners impacted by the fraud.

Today, class action cases continue to make the news. From the latest data breach involving millions of people’s personal information to faulty medical devices and pharmaceuticals. Class actions have the ability to effectuate change.

Class Actions Influence Consumer Protection Laws and Regulatory Changes

Litigation, such as the landmark class action cases discussed above, has profoundly shaped legal standards for many types of cases. Not only are members of the class impacted, but they can influence consumer protection laws for everyone and cause regulatory changes.

Class action lawsuits often have a significant impact on the law. The district court must approve settlements proposed by class action lawyers. A judge issues a written determination that the settlement is fair. 

Individual lawsuit settlements typically do not have detailed written approvals by the court. When individual claims settle, the outcomes are often confidential, which does not make them valuable to others. However, the way class action lawsuits work, class action settlements are often available as public information. 

Cases under class action law are often well-funded. The entire class shares the costs of litigation, including funding the attorney’s fees for the class counsel. When class action cases are litigated to a jury verdict, appealed, and the verdict upheld on appeal, the class action case is a valuable precedent.

Legislative Reform Through Class Actions

The individual compensation for most individual class members in the majority of class action lawsuits is not typically enough to motivate an individual to take action. However, participating in a class action can be part of a larger picture.

Class action litigation can lead to safer products, racial integration, reduction in securities fraud, or a cleaner environment through legislative reform. Class actions can change the law. If you have questions about whether it’s in your best interest to join a class action, speak with a class action lawyer in your area.