RESOURSE CENTER

CLASS ACTIONS: FAQs

Click To What Is a Class Action?

A civil lawsuit brought by a person or a few people on behalf of a larger group, or class of people, who it is alleged suffered injuries common with the plaintiff. The larger group is referred to as the class, while the plaintiff who brough the suit if referred to as the lead plaintiff or class representative.

How Many People Does it Take to Have a Class Action?

While there is no set number, and classes have been certifed with fewer, the general concensous is that forty members will suffice to meet the numerosity requirement.

How Long Does a Class Action Take?

Every case is different depending of the facts and some class actions may settle in a few months, while others may linger on in the federal court system for years or even decades. However, as a general rule it usally takes between two and three years.

Do I Have to Participate in a Class Action?

No. If the case is certified as a class action, a court ordered notice will be send to all class members. You can do nothing and stay in the case or you can opt-out and no further be a part of the class action. You can opt-out and do nothing, or if you have large enough losses to justify it, bring an individual action against the defendant. Also, if you opt-opt you will not particicipate in any settlement or receive any money as a result of a settlement of the class action.

What Is a "Putatve" Class Action?

Putative" means "assumed to exist." When a class action is first filed it is sometimes referred to as a putative class action where there has been no order by the judge officially certifying the case as a class action.

What is the Class Action Fairness Act?

The Class Action Fairness Act (CAFA) became a law when signed by President George W. Bush on February 18, 2005.

Under CAFA, federal courts now have exclusive jurisdiction in all class actions where the amount in controversy exceeds five million dollars. Under CAFA, if a class action is filed in state court and the total damages will likely exceed five million dolllars, the defendant has the right to ask that the case be transferred to federal court.

What is a common fund?

A common fund is a pool of money created to compensate class members. It may be established through settlement, judgement or court order. Class members are usually required to file claims in writting to receive thier portion of the common fund.

What Is the Difference in a Class Action and a Mass Tort?

The primary difference is that a mass tort is filed only on behalf of a single individual, while a class action is filed on behalf and could effect thousands of people.

Are There Any States That Do Not Allow Class Actions?

Yes, one. Virginia has a ban on all class actions. Virginia residents have no choice but to file a class action in federal court.

Can You Dismiss a Class Action at Anytime?

A case that has has been certified as a class or proposed to be certified for settlement purposes may not be voluntarily dismissed without court order. A case yet to be certfied may, with a couple exceptions, be voluntarily dismissed.

What Is a Representative Plaintiff?

A class action may also be referred to as a representative action. A representative plaintiff is just another term for lead plaintiff or the named plaintiff.

What Are Sub-Classes?

When appropriate, Federal Rules of Civil Procedure allow for the creation of sub-classes. Sub-classes may be appropriate when certain members of the class want different kinds of relief, such as damages for one group or injunctive for another group. Sub-classes can also be created to deal with state laws that apply substantially different requirements to different groups of class members.

How do I Submit a Claim?

Class action settlements that offer compensation usually require Class Members to submit Claim Forms. Claim Forms are normally mailed directly to Class Members but in some cases Class Members must contact the Settlement Administrator to get a Claim Form or file a claim on a settlement website.

What Do I Do if I Receive a Class Action Notice?

The first thing to do if you receive a class action notice is to read the notice very carefully. Notices are sent at various times in a class action lawsuit. The first notice is sent at the time the lawsuit is certified as a class action. In most cases you will be automatically included in the class if you fit within the description of the class and if you do nothing when you receive the notice. You have essentially 3 possible options when you receive a class action notice: (1) Participate as a class member; (2) Not participate in the lawsuit at all (Opt out); or (3) Participate as a named plaintiff in the lawsuit.

How Do I Opt-Out?

If you do not want to participate in the lawsuit as a member of a class, you will need to opt out of the class. The notice you receive will explain how to do that. There will also be a cut-off date, and you must send your notice to opt out of the class by the date specified or you will be included in the class and lose any rights to file a lawsuit on your own. However, timely opting out means that you can sue the defendant on your own, instead of being part of a class. In deciding whether to opt out and pursue the defendant on your own, there are many factors to consider, like the potential cost of litigation and whether your damages are different than the rest of the class.

How do I get paid in a class action settlement?

All Participating Class Members who submit valid and timely Claim Forms as described in the Notice of Class Action Settlement are entitled to receive settlement payments. If you return the Claim Form, but it is defective, you will be mailed a cure letter by the Claims Administrator within a certain time.

What Is a Cy Pres Award?

Cy pres awards are funds given to charitable organizations in cases in which there is still money remaining in the settlement fund, even after all class members have been paid or the amount of the fund is too small to justify a distribution directly to class members.

What is a securities class action?

A securities class action, or securities fraud class action, is a lawsuit filed by investors who bought or sold a company's securities within a specific period of time, referred to as a “class period," and suffered economic injury as a result of violations of the securities laws.

What Are the Requirements for a Class Action Notice?

Class action notice is required to be given to all persons who would be affected by the court’s decision. Although it usually is not possible to give every such individual personal notice, all persons who might be affected are entitled to the best notice possible.

What Are the Responsibilities of a Class Representative?

Class representatives represent the interests of all class members who have been affected by the conduct challenged in a lawsuit. They owe a fiduciary duty to the class and cannot put their own interests ahead of those of the other class members.

Will I incur any costs if I Join a Class Action??

No. The lead plaintiff in a class action might incur some out-of-pocket expenses, although these are typically reimbursed. Class members, however, incur no costs. At most, they sacrifice a small portion of their award to finance the attorneys that helped them win the case.

Class Action and Complex Litigation Resource

LEGAL GUIDES

Class Actions

· Important Things for Consumers and Shareholders to Know About Class Actio Lawsuits
· What is a Lead Plaintiff in a Class Action Lawsuit?
· How do I get paid in a class action settlement?
· What to Do if You Receive a Class Action Notice?
· Requirements for a class action notice
· Will joining a class action cost you anything?
· How to Submit a Claim for a Class Action Settlement?
· How Many Plaintiffs Do You Need For a Class Action Lawsuit?
· Cy Pres Awards in Class Action Settlements Coupon Settlements Remain Acceptable Means to Resolve Class Litigation Even After Passage of CAFA
· What Is a Shareholder Derivative Action?
· Class-action vs. Derivative Shareholder Lawsuits

Corporate Formation

• What is Corporate Takeover Litigation
• The Advantages and Disadvantages of Forming an LLC
• Benefits to Company Owners By Using An LLC To Purchase A Home
• Step-By-Step Guide to Forming An LLC In Tennesseee

Shareholder Rights

• What are shareholder appraisal rights?
• Shareholder Voting Rights
• What Is a Special Litigation Committee?
• What Is a Demand for Inspection of Books and Records Under Delaware Law?

Mass Torts

• What Is a Mass Tort?

FEDERAL COURTS

History of the Federal Judiciary
U.S. Supreme Court

U.S. Courts of Appeals

DISTRICT COURTS
U.S. District and Bankruptcy Courts Map

STATUTES, RULES & PROCEDURES

Introduction To The Federal Court System
Federal Rules of Civil Procedure
Federal Rules of Appellate Procedure
Federal Rules of Evidence
Rules of Appellate Procedure
Federal Rules of Criminal Procedure
Federal Rules of Bankruptcy Procedure
Supreme Court Rules and Guidance
Judicial Panel on Multidistrict Litigation
   28 U.S.C. § 1407
28 U.S.C. § 2112
Panel Rules
•  Panel Rules effective October 4, 2016
• General Order Amending Panel Rules effective July 6, 2011
•  Summary of Panel Rules

ADDITIONAL RESOURCES

FEDERAL LAW

OTHER FEDERAL COURTS & ORGANIZATIONS

STATE LAW

OTHER RESOURCES

Class Action and Complex Litigation Resources

WHISTLEBLOWER: FAQs

What Is the False Claims Act?
The False Claims Act (FCA) makes it illegal for any person or institution to intentionally file a false claim or create a false record regarding any federally funded program. In this case, “intentionally” includes acting with reckless disregard, which is when someone blatantly ignores the potential consequences their actions may bring. The “qui tam” provision of the FCA allows private citizens who have evidence of fraud to file a lawsuit against the at-fault party on behalf of the government.

What Does “Qui Tam” Mean?
“Qui tam” is a shortened Latin phrase meaning “who as well for the king as for himself sues in the manner.” In other words, it means that an individual is filing a lawsuit on behalf of their government. The qui tam provision of the FCA was enacted not only to encourage whistleblowers but also to protect them from any retaliation by the hands of the organization they’re helping to expose.

What Will a Whistleblower Attorney Do?
An experienced whistleblower attorney will help you navigate through the complexities of the lawsuit process and make it as easy as possible for you to use your evidence to expose corruption. Once we’ve received your claim, we’ll begin the evaluation process to determine whether your evidence is sufficient enough to move forward. If not, we’ll use our years of experience to advise you on ways to make your case stronger.

Once it’s determined that you have a case, our attorneys will help you file the lawsuit and ensure that you’re protected to the fullest extent of the law for the duration of your case. We take the safety of our clients seriously, and if you experience any retaliation from the organization you’re helping expose, we can do everything in our power to make sure they’re held accountable for their actions. Not only that, but our attorneys will also fight for the maximum whistleblower rewardpossible, so you’re compensated fairly for your brave contribution.

What Is a Qui Tam Lawyer?
A qui tam lawyer is an attorney who specializes in whistleblower lawsuits. This type of litigation allows private citizens to file a lawsuit on behalf of the government against an individual or organization who’s committing fraud within our nation’s federally funded programs.

What Constitutes as a Whistleblower Lawsuit?
If you have evidence of an individual or organization deliberately attempting to defraud the government of funding, you may have grounds for a whistleblower lawsuit. However, not all evidence is created equal, and you may not know if your information is sufficient enough to warrant a lawsuit. If you’re unsure about your eligibility, please speak with one of our whistleblower attorneys for further opinion and advice on how to proceed.

Can a Whistleblower Be Fired?
Whistleblowers are granted protections from retaliation under the FCA, including demotion, termination, suspension, denial of benefits, and any other retaliatory behavior. If an unethical organization attempts to retaliate against you despite these protections, you can file a lawsuit against them and recover the damages their actions have caused.

However, it’s important to act quickly if you do experience retaliation. Time is of the essence in these situations, and you’ll need to prove that you were fired as a result of the qui tam lawsuit you were a part of. Waiting to file the lawsuit can make your case weaker and potentially cause you to lose it altogether, so it’s important to speak with an attorney.

Do You Need Evidence to Be a Whistleblower?
Yes, you’ll need strong supporting evidence to file a qui tam lawsuit. The evidence you collect must clearly display the entity committing the fraud, the amount stolen, and any other relevant information pertaining to the crime at hand. Many whistleblowers have collected financial statements, emails, and memorandums, but others have taken an extra step and used a personal recording device to collect evidence. While this isn’t necessary in all cases, it is important to collect as much evidence as you can to ensure that your case can help expose the corruption.

Can You Remain Anonymous as a Whistleblower?
The False Claims Act requires that qui tam lawsuits are kept “under seal” while the case is under investigation. This means that anyone other than the U.S. Department of Justice, the U.S. attorney, and the assigned judge of the District Court cannot view the details of your case until the case becomes unsealed. If you have any concerns about your anonymity during this process, it’s a good idea to speak with our whistleblower attorneys and learn more about the laws that will affect your case.

Why Should I Report Fraud?
Hardworking citizens and their tax dollars support our government programs. When money is stolen from these programs, it’s really stolen from the American people, as they’re the ones who ultimately pay the price for fraud. The brave individuals who expose this criminal behavior are nothing short of heroes, and their contribution to the preservation of justice is something that shouldn’t go unrewarded. Fortunately, the FCA contains a provision that allows whistleblowers to receive a financial reward for their actions.

If your qui tam lawsuit is successful in recovering defrauded funds, you could be eligible to receive between 15% and 30% of the total amount recovered. Although the promise of compensation is appealing, the real reward for whistleblowers is knowing that you’ve helped right a wrong and set an example for others to follow in the future.

What Is Fraud?
In qui tam lawsuits, fraud is defined as the intentional, significant misuse or theft of taxpayer funding. It also includes the misrepresentation of goods or services with the intent to earn unwarranted compensation, which can occur when companies bill the government for unperformed services. Fraud can be committed by a single individual or an entire organization, but the victim is always the innocent taxpayer who assumes their hard-earned money is going toward its intended purpose.

What Are Whistleblowers’ Rights and Protections?
Individuals who find evidence of fraud are often fearful that the organization may attempt to retaliate against them for bringing their crimes to light. However, these individuals have nothing to worry about, as the FCA grants protections from retaliatory behavior for all whistleblowers. This behavior can include:

Harassment/discrimination
Suspension
Demotion
Denial of benefits
Imposition of penalties/sanctions

Some organizations may attempt to retaliate against you despite the protections of the FCA. If this occurs, you have the right to file a lawsuit against your employer seeking reinstatement, twice the amount of back pay you lost as a result of their behavior, interest on back pay, and any litigation fees you accrued throughout the process.