Class Action Lawsuits: A Legal Tool of Collective Power

Class action lawsuits represent a powerful fusion of law and social equity, enabling groups of people with similar grievances to band together and seek justice as a unified front. Rooted in English equity courts but most robustly developed in the United States especially after the adoption of Rule 23 of the Federal Rules of Civil Procedure in 1966 class actions have grown into a cornerstone of public-interest litigation. At their core, they address the fundamental problem of access to justice:

when individual harms are too minor to justify the cost of legal action, collective suits offer a practical and equitable remedy.

A class action suit is a type of lawsuit where one person or a small group of people sue on behalf of a larger group who have the same or similar legal complaint.

It allows many people with similar harm such as from a faulty product, unfair business practice, or data breach to join together and seek justice in one single case.

Over the decades, class actions have tackled wide-ranging issues from defective products and environmental disasters to securities fraud, labor rights violations, and racial or gender discrimination.

Landmark cases such as Brown v. Board of Education and the tobacco litigation of the 1990s showcase how class actions can drive systemic change, shape public policy, and hold powerful entities accountable.

In the era of big tech and data surveillance, class actions are evolving once again now focusing on privacy violations, algorithmic bias, and monopolistic practices.

Yet, this legal mechanism is not without controversy. Critics argue that some suits lead to massive settlements with minimal benefit to actual plaintiffs, disproportionately enriching law firms. Others express concern over frivolous filings and the burden on businesses. In response, courts and legislatures have tightened certification standards and imposed procedural safeguards to prevent misuse.

Still, the class action remains a vital democratic instrument—an equalizer in a system often tilted by power and money. It reflects the enduring legal principle that justice should not only be available to the few with deep pockets but to the many with shared voices.

FEDERAL RULES OF CIVIL PROCEDURE

IV. Parties

Rule 23— Class Actions

(a) Prerequisites to a Class Action. One or more members of a class may sue or be sued as representative parties on behalf of all only if

(1) the class is so numerous that joinder of all members is impracticable,

(2) there are questions of law or fact common to the class,

(3) the claims or defenses of the representative parties are typical of the claims or defenses of the class, and

(4) the representative parties will fairly and adequately protect the interests of the class.

(b) Class Actions Maintainable. An action may be maintained as a class action if the prerequisites of subdivision (a) are satisfied, and in addition:

(1) the prosecution of separate actions by or against individual members of the class would create a risk of

(A) inconsistent or varying adjudications with respect to individual members of the class which would establish incompatible standards of conduct for the party opposing the class, or

(B) adjudications with respect to individual members of the class which would as a practical matter be dispositive of the interests of the other members not parties to the adjudications or substantially impair or impede their ability to protect their interests; or

(2) the party opposing the class has acted or refused to act on grounds generally applicable to the class, thereby making appropriate final injunctive relief or corresponding declaratory relief with respect to the class as a whole; or

(3) the court finds that the questions of law or fact common to the members of the class predominate over any questions affecting only individual members, and that a class action is superior to other available methods for the fair and efficient adjudication of the controversy. The matters pertinent to the findings include:

(A) the interest of members of the class in individually controlling the prosecution or defense of separate actions;

(B) the extent and nature of any litigation concerning the controversy already commenced by or against members of the class;

(C) the desirability or undesirability of concentrating the litigation of the claims in the particular forum;

(D) the difficulties likely to be encountered in the management of a class action.

(c) Determination by Order Whether Class Action to be Maintained; Notice; Judgment; Actions Conducted Partially as Class Actions.

(1) As soon as practicable after the commencement of an action brought as a class action, the court shall determine by order whether it is to be so maintained. An order under this subdivision may be conditional, and may be altered or amended before the decision on the merits.

(2) In any class action maintained under subdivision (b)(3), the court shall direct to the members of the class the best notice practicable under the circumstances, including individual notice to all members who can be identified through reasonable effort. The notice shall advise each member that

(A) the court will exclude the member from the class if the member so requests by a specified date;

(B) the judgment, whether favorable or not, will include all members who do not request exclusion; and

(C) any member who does not request exclusion may, if the member desires, enter an appearance through counsel.

(3) The judgment in an action maintained as a class action under subdivision (b)(1) or (b)(2), whether or not favorable to the class, shall include and describe those whom the court finds to be members of the class. The judgment in an action maintained as a class action under subdivision (b)(3), whether or not favorable to the class, shall include and specify or describe those to whom the notice provided in subdivision (c)(2) was directed, and who have not requested exclusion, and whom the court finds to be members of the class.

(4) When appropriate

(A) an action may be brought or maintained as a class action with respect to particular issues, or

(B) a class may be divided into subclasses and each subclass treated as a class, and the provisions of this rule shall then be construed and applied accordingly.

(d) Orders in Conduct of Actions. In the conduct of actions to which this rule applies, the court may make appropriate orders:

(1) determining the course of proceedings or prescribing measures to prevent undue repetition or complication in the presentation of evidence or argument;

(2) requiring, for the protection of the members of the class or otherwise for the fair conduct of the action, that notice be given in such manner as the court may direct to some or all of the members of any step in the action, or of the proposed extent of the judgment, or of the opportunity of members to signify whether they consider the representation fair and adequate, to intervene and present claims or defenses, or otherwise to come into the action;

(3) imposing conditions on the representative parties or on intervenors;

(4) requiring that the pleadings be amended to eliminate therefrom allegations as to representation of absent persons, and that the action proceed accordingly;

(5) dealing with similar procedural matters. The orders may be combined with an order under Rule 16, and may be altered or amended as may be desirable from time to time.

(e) Dismissal or Compromise. A class action shall not be dismissed or compromised without the approval of the court, and notice of the proposed dismissal or compromise shall be given to all members of the class in such manner as the court directs.

[As amended Feb. 28, 1966, eff. July 1, 1966; Mar. 2, 1987, eff. Aug. 1, 1987.]