{ "id": "R45159", "type": "CRS Report", "typeId": "REPORTS", "number": "R45159", "active": true, "source": "EveryCRSReport.com", "versions": [ { "source": "EveryCRSReport.com", "id": 580042, "date": "2018-04-11", "retrieved": "2018-04-16T13:08:40.076791", "title": "Class Action Lawsuits: A Legal Overview for the 115th Congress", "summary": "A class action is a procedure by which a large group of entities (known as a \u201cclass\u201d) may challenge a defendant\u2019s allegedly unlawful conduct in a single lawsuit, rather than through numerous, separate suits initiated by individual plaintiffs. In a class action, a plaintiff (known as the \u201cclass representative,\u201d the \u201cnamed representative,\u201d or the \u201cnamed plaintiff\u201d) may sue the defendant not only on his own behalf, but also on behalf of other entities (the \u201cclass members\u201d) who are similarly situated to the class representative in order to resolve any legal or factual questions that are common to the entire class.\nCourts and commentators have recognized that class actions can serve several beneficial purposes, including economizing litigation and incentivizing plaintiffs to pursue socially desirable lawsuits. At the same time, however, class actions can occasionally subject defendants to costly or abusive litigation. Moreover, because the class members generally do not actively participate in a class action lawsuit, class actions pose a risk that the class representative and his counsel will not always act in accordance with the class members\u2019 best interests. In an attempt to balance the benefits of class actions against the risks to defendants and class members, Federal Rule of Civil Procedure 23 establishes a rigorous series of prerequisites that a federal class action must satisfy. For similar reasons, Rule 23 also subjects proposed class action settlements to the scrutiny of the federal courts.\nThis report serves as a primer on class action litigation in the federal courts. It begins by discussing the purpose of class actions, as well as the risks class actions may pose to defendants, class members, and society at large. The report also discusses the prerequisites that a class action must satisfy before a court may \u201ccertify\u201d it\u2014that is, before a federal court may allow a case to proceed as a class action. An Appendix to the report also contains a reference chart that graphically illustrates those prerequisites for class certification. The report then discusses Rule 23\u2019s restrictions on the parties\u2019 ability to settle a certified class action. The report concludes by identifying ways in which Congress could modify the legal framework governing class actions if it were so inclined, with a particular focus on a bill currently pending in the 115th Congress that would effectuate a variety of changes to the class action system.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/R45159", "sha1": "3d5dec9738c948ddd53be3179933bbdcc83f91da", "filename": "files/20180411_R45159_3d5dec9738c948ddd53be3179933bbdcc83f91da.html", "images": { "/products/Getimages/?directory=R/html/R45159_files&id=/0.png": "files/20180411_R45159_images_0818142eeb85db3ee6792a7ba2d8a33e6d868b17.png" } }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/R45159", "sha1": "9b7e15af0e88c65fd7e2664af2412549257babf0", "filename": "files/20180411_R45159_9b7e15af0e88c65fd7e2664af2412549257babf0.pdf", "images": {} } ], "topics": [ { "source": "IBCList", "id": 4755, "name": "Judicial Branch" } ] } ], "topics": [ "American Law" ] }