The Phases of a Class Action Lawsuit

Class action lawsuits generally proceed along a predictable trajectory. Although each case is unique and the events that occur in each phase can vary, there are several general steps common to most class action lawsuits. Read on to learn more about the distinct phases of a class action case and what to expect during each stage of the litigation process.

If you have questions about a class action case or whether to join one, speak with an experienced class action lawyer in your area. They can provide the legal guidance necessary to make the best decision for your case.

Introduction to Class Action Lawsuit Phases

While each class action case is unique and depends on the type of lawsuit the attorneys file, each case typically includes the following phases:

• Filing the complaint (and any responses to the complaint, including a motion to dismiss)
• Discovery
• Motion for Class Certification
• Settlement Negotiations
• Trial
• Distribution

These are the general steps for a class action lawsuit. The duration of each phase and whether each case proceeds through each step depend on the case’s unique circumstances.

The Filing Phase

A pre-suit investigation determines whether a case is suitable for a class-action lawsuit. If the case proceeds past this point, the class action attorney files the class action lawsuit. The complaint is the document that initiates the class action litigation. The complaint for the class action suit:

• Details the underlying facts and alleged wrongdoing
• Names the defendant
• Describes the potential class members that the class representatives seek to represent
• States the legal claims the lead plaintiff seeks to pursue on behalf of the proposed class and themselves

Once the class action lawyer files the lawsuit, defendants commonly file a motion to dismiss. Assuming the facts alleged are correct, which is a legal requirement for a motion to dismiss, they will argue that the lawsuit has no legal basis. If the court agrees with the defendant, the case will be dismissed. If not, the parties will move to the discovery or investigation phase of the legal action.

Discovery Phase in Class Actions

Discovery is the phase in the legal proceedings during which the parties exchange requests for evidence related to the claims and defenses. Common discovery tools for potential claims include the following:

• Document requests
• Interrogatories
• Depositions

The discovery phase in a class action case oftentimes takes years to complete and is costly.

Class Certification Process

In each class action case, the court must approve the named plaintiff’s motion for class certification. In this phase, the plaintiffs must present facts and evidence demonstrating that the claims made by members of the class are suitable for class treatment. If they are, the court will certify the group of people as a class, and the case will proceed.

For example, in cases in federal court, the Federal Rules of Civil Procedure require the plaintiffs to demonstrate that:

• The plaintiffs and their attorneys adequately represent the interests of all class members (adequacy)
• The large group of potential plaintiffs justifies class action treatment (numerosity)
• No unique legal issues for individual members predominate over common questions and issues relevant to the class
• The proposed class has similar claims based on similar claims and common issues (typicality)

Trial Phase and Class Actions

Once the parties complete discovery, they will continue to file legal motions before trial. The trial will include all legal issues that remain outstanding. The trial procedure is similar to that of any other type of civil litigation in court. Most consumer class action cases end with a class action settlement (when the case resolves in favor of the entire class). If a case does go to trial, it can take weeks to months to resolve. The trial will either be heard by a judge or a jury. Class action trials are rare.

Settlement and Post-Settlement Processes

The party may engage in settlement negotiations at any time during the litigation. However, the parties typically engage in settlement discussions after the discovery phase. Another common time for settlement discussions is right before the trial. Settlements can help control costs. It also allows the entire group to receive a portion of the proposed settlement long before you would receive a distribution after a trial.

After successful negotiations, the parties submit a proposed settlement agreement to the court for approval. The parties request that the court determine whether the proposed settlement terms are fair, adequate, and reasonable.

Class Notice and Final Approval

If the court finds the proposed settlement fair, it will grant a preliminary approval. The class counsel will then send out a notice of settlement to all members of the class. They can do this by direct mail, publication in the media, or other means likely to reach class members.

The notice outlines the class members’ legal rights, including opting out of the suit to preserve the right to file an individual lawsuit. If you opt out, you can determine whether to bring a case on your own for personal injury or financial loss claims.

The notice also provides the opportunity to address issues of fairness concerning the settlement. At the fairness hearing, the court hears any objections to the settlement and considers the number of class members who opted out, along with supporting statements. If the settlement is deemed fair, adequate, and reasonable by the judge, it will issue a final approval. Class members receive distributions of the class settlement, which the court administers.

Get Legal Help for a Class Action Case

An experienced attorney can help you determine how to best protect your interests if a defective product or service has injured you. The procedures described were created to protect the unique rights of class members who a court’s decision may bind without ever taking part in litigation, and to ensure fair compensation for all class members. If you have questions about a class action case, talk to an experienced class action lawyer in your area today.