The recent withdrawals of the prescription medications Vioxx and Bextra from the marketplace due to safety concerns has class-action lawsuits in the news again. What is a class-action lawsuit? If you have been wronged, can a class-action lawsuit help you?
A class-action lawsuit is one in which a single law firm or attorney represents a group of individuals who have been wronged in some common way. The wrong may have come in the form of physical harm from a commercial product or perhaps in the form of financial harm done by a company misleading the public in some way. In the early 1990’s, class-action lawsuits were filed on behalf of women allegedly harmed by silicone breast implants, and now attorneys are filing class-action suits on behalf of people allegedly harmed through the use of Vioxx and Bextra.
There are advantages and disadvantages to class-action suits. The primary advantage is that they allow a group of people, perhaps numbering in the thousands, an opportunity to have their case heard in court without each of them having to file a separate lawsuit. If thousands, or even tens of thousands, of people filed individual lawsuits against the same company for the same reason, the courts, both at the Federal and state levels, could become hopelessly clogged with nearly identical cases. Another advantage is that it allows people who may not have individually suffered enough harm to justify a lawsuit by themselves to seek compensation as a group, or “class” where the harm committed is cumulatively large.
The courts decide whether or not a case is to be heard as a class-action suit, as the court must decide if the merits of the case justify handling the suit in that way, and whether or not the attorney or law firm in question can adequately represent the victims involved. Should the case proceed as a class-action suit, only one or two representatives of the class need appear in court. They will represent the class; it is not necessary for all members of the class to be present at trial.
Once the case is certified as a class-action lawsuit, all parties representing the “class” are notified by their attorney either via mail or public notice. They then have the opportunity to “opt out”, should they not wish to be represented in the case by the attorneys in question. Unless the notified individuals opt out, they are included and will share in the award, should the lawsuit proceed to a successful conclusion. Individuals who choose to opt out may then elect to hire their own representation and perhaps file a lawsuit on their own.
Class action lawsuits typically take several years to reach their conclusion, particularly if the suit is followed by appeals by the losing party. It is not uncommon, however, for class action lawsuits to be settled out of court.
As always, should you find yourself in a situation where a lawsuit might be warranted, be sure to consult with a qualified attorney.
Home Loans – Identity Theft Protection Could Hurt Home Sales
Identity theft has been a hot topic in the news during the last few years. Just a month or so ago, forty million credit card numbers were compromised due to a computer attack on a credit card processor. Consumers are rightly concerned, as it can take years to unravel the problems created when someone’s identity is stolen. New legislation in Texas and California, also proposed elsewhere, is designed to protect consumers by letting them put a “freeze” on their credit reports. Those in the real estate industry are worried, however, that doing so may make it difficult for some people to buy homes.
Debt Consolidation – How to Protect Your Credit Accounts from Theft
Last week, a security exploit at CardSystems Solutions, Inc, a credit card processor, may have allowed thieves to obtain as many as 40 million credit card numbers from unsuspecting victims. The theft was brought about though a virus introduced into the CardSystems that allowed external hackers to obtain access to the account information. Adding to the problem was the fact that CardSystems wasn’t supposed to have the account information at all. It appears that CardSystems “inappropriately” held onto the information after clearing the credit card transactions. At that point, the account information should have been deleted. CardSystems held onto the account information for supposed “research purposes.” Fortunately for those involved, the compromised information only included account numbers and not Social Security numbers, which would have assisted the thieves in identity theft scams. This latest security breach at a credit card processor outlines how anyone can be vulnerable to account or even identity theft. Is there anything that can be done about it?
New Bankruptcy Law – Targeting the Wrong People?
Last April, President Bush enthusiastically signed into law the oddly-named Bankruptcy Abuse and Consumer Protection Act. This bill, representing the biggest overhaul of bankruptcy law in twenty-five years, was written in order to discourage “bankruptcy of convenience.” Proponents of the bill, which included the credit card industry, say that the bill is necessary in order to stop an avalanche of bankruptcy filings by drug users and compulsive shoppers and gamblers. The law makes it harder to have debts wiped away, requires credit counseling for those considering bankruptcy, and holds attorneys responsible for paperwork errors by their clients in bankruptcy cases. The net result will probably be chaos, as fewer attorneys will handle bankruptcy cases, credit counselors will raise their fees, and more consumers with problem debt will be clueless as to what they should do next. Adding to the confusion are some new statistics that suggest that a large number of bankruptcies that are thought to be personal are actually business bankruptcies. As a result, the new law may be unfairly targeting consumers for punishment when they are not actually the biggest part of the problem. Worse, it could be harming small businesses.
