Class Actions | FAQ

 

What is a class action? 

A class action is a lawsuit on behalf of a group of people who have the same claim (a “class”). The case is usually brought by one or more named plaintiffs who serve as representatives of the class.  Class actions make it possible for a large group of people to seek remedies without having to individually litigate each case. 

 

What is a class representative or lead plaintiff? 

A class representative, or lead plaintiff in a class actions involving violations of securities laws, serves as a representative of a class. In some cases, they may be the person who initially approached the lawyer about the issue at hand.  A class representative or lead plaintiff can also be someone with significant losses, or someone who simply wishes to be more involved in the process and is comfortable with their name being made public in association with the class action. 

 

How do I participate in a class action? 

If you fall under the description of a proposed class in a federal court case, you are automatically part of that proposed class and do not need to take any steps to remain part of it. 

If you think you may be part of a class represented by K&S and have questions, or if you want to contribute information or data to the case, you are welcome and encouraged to contact us.  However, this is completely optional and does not affect your right to any reward obtained through the class action. 

Be wary of lawyers who imply that you are obligated to pay fees, sign engagement agreements, or take extra registration steps to become part of or “join” a class. 

 

Can I opt out of a class action? 

At some point after the defendants file an answer in a class action, often several months or even years later, the plaintiffs will ask the court to certify the proposed class.  Generally, in federal court, if and when the court certifies the class, you will be notified and have the opportunity to opt-out of participation.  

 

Does the court have to approve a settlement of a class action? 

Yes.  Class action settlements must be reasonable and approved by the court.  

 

How are lawyer fees in a class action decided? 

In a class action, no upfront fees are collected by the law firm.  If there is an approved settlement or judgment in favor of the class, the court makes a decision as to an appropriate fee award for the plaintiffs’ lawyers.  The attorneys’ fees must be reasonable and the court may take into account factors such as the law firm’s efforts/hours spent working on the case, the complexity of the case and the size of the final settlement.  The fee is then deducted from the settlement. 

If the case is dismissed or unsuccessful, members of the class are not responsible for fees that might have otherwise been rewarded by the court.  The lawyers only collect a fee if the plaintiffs prevail or there is a settlement approved by the court. 

 

To learn more about what class action suits are and how they work, see “What are Class Action Lawsuits?” from Public Citizen.