Common use of WHAT IS A CLASS ACTION Clause in Contracts

WHAT IS A CLASS ACTION. In a class action lawsuit, one or more people called “Class Representative Plaintiffs” sue one or more defendants on behalf of other people who may have similar claims. All these people together are a “class” or are “class members.” The court can determine whether it will allow a lawsuit to proceed as a class action. If it does, a trial then decides the lawsuit for everyone in the class or the parties may settle without a trial. In a class action, one court resolves the common issues for everyone in the Class – except for those people who choose to exclude themselves from the Class.