What is a Class Action

Simply put, a class action is a civil lawsuit where a single person or entity prosecutes a claim on behalf of a group of individuals, which is called a class. Ranging from dozens of people to groups numbering in the thousands, a class is made up of individuals who have experienced similar hardships, such as a financial loss or injuries with a common cause.

A class action lawsuit can end up going to jury trial or bench trial, during which a jury or judge, respectively, will decide whether to compensate class members for what they have endured. When a settlement is reached in a class action, a common fund is created to compensate class members.

For example, FeganScott represents a group of women sexually assaulted, abused or harassed by former movie mogul Harvey Weinstein. These women make up the class in a class action lawsuit against Weinstein and his companies and have a goal of establishing a confidential victims fund.

Another example is the class action brought against American Equity Investment Life Insurance Company for locking senior citizens into long-term annuities under the guise they would pay for living and medical expenses, when the annuities did not mature until the seniors were 110 years old. Senior citizens joined a class action lawsuit led by attorney Beth Fegan. American Equity settled the lawsuit for $129 million and the seniors were able to access promised benefits for necessary housing and medical care.