Class Action Lawsuits: An Introduction (CRS Report for Congress)
| Release Date |
Sept. 13, 2024 |
| Report Number |
IF12763 |
| Report Type |
In Focus |
| Authors |
Bryan L. Adkins |
| Source Agency |
Congressional Research Service |
Summary:
The general rule in American litigation is that lawsuits are
brought only on behalf of the named parties. The class
action mechanism is an exception to that rule that permits
one or more “named plaintiffs” (commonly known as “class
representatives”) to sue a defendant on their own behalf and
as representatives of a larger group of unnamed individuals
or entities (the “class”) who have allegedly suffered the
same injury. This In Focus provides a brief overview of the
evolution, evaluation, and operation of class action lawsuits
in federal courts.
Class actions aggregate the claims of numerous individuals
or entities―even those who may not be aware of their
potential claims when the lawsuit is filed―into a single
proceeding. In ordinary multi-plaintiff lawsuits, the
plaintiffs are named in the complaint and participate
directly in the case. In class actions, only the class
representatives are named, and they act on behalf of the
entire class. Class members generally are bound by the final
judgment of the court in a class action even though they did
not directly participate in the litigation.
The class action mechanism has roots in early English law,
but the modern class action in the United States was created
in Rule 23 of the Federal Rules of Civil Procedure, which
governs class actions in federal courts. The Supreme Court
first promulgated Rule 23 in 1937. Major amendments in
1966 remade the rule into its modern form, including
permitting a class action for money damages with “opt-out”
rights, which the Supreme Court has described as Rule 23’s
“‘most adventuresome’ innovation.” While plaintiff classes
are most common, Rule 23 also permits federal courts to
certify classes of defendants. Because defendant class
actions are rare and raise different considerations than
plaintiff class actions, this discussion is limited to plaintiff
class actions.
