Class action law is a lawsuit where a person sues a group of people, a group of people sues another group of people, a group of people sues a person. Generally, federal courts are more favourable for defendants and state courts are more favourable for plaintiffs. Many class actions are filed initially in state court.
In order for a class action lawsuit to be filed, it must have the following characteristics, commonality, adequacy, numerosity and typicality. Commonality is when it is required to have at least one legal claim common to the whole class. Adequacy is where the parties are required to protect the benefits of the class as a whole. Numerosity states that the class must be large enough to make individual suits not a practical alternative. Typicality means that the claims must be a typical claim of a plaintiffs or defendants.
Class action lawsuits have many advantages due to the large number of individualized claims into one lawsuit. This type of lawsuit can increase the efficiency of the legal process. Due to the increased efficiency the cost of litigation is lower. Class action lawsuit also resolves the issue surrounding the small recoveries not providing the incentives for an individual to bring a solo action persecuting their rights.