Class Action - Part 1

What is a Class Action? Part 1

What's a class action and how do they work, in 3 minutes or less.

A class action means that someone is suing on behalf of everyone similarly situated. For instance, if I lost $5 because of a charge that was on a ticket with an airline, and everybody that bought tickets in a year with that same airline also lost $5 - that's just too small of an amount of money for everyone to possibly hire a lawyer and file suit over. But there's commonality to it, in that everybody in that year lost the five bucks.

That would be a classic class action lawsuit where three people could come forward, the representatives of the class, their lawyers, could help prosecute the case. And if there's a settlement, it would go to the people that lost the $5.

Go to my next video to explain how the money's distributed.

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