Benefits of class-action lawsuits
Certification as a class can allow litigation to proceed more quickly and cost-effectively, especially in cases against large corporations. Because they reduce prosecution costs, class action suits may be the only means for some individual plaintiffs to pursue their case.
Individuals may also have a better chance of successfully win their claims against the defendant or defendants. Even when represented in the class, individual members can opt-out of any possible settlement and pursue their claims individually.
Types of class-actions
Types of class-actions include securities litigation, civil rights litigation such as school funding, and consumer product liability cases. Congress laid out additional rules for class-action lawsuits in securities in the Private Securities Litigation Reform Act (PSLRA) of 1995.