A covered class action is a legal term referring to a lawsuit where damages are sought on behalf of more than 50 individuals. This type of action allows a group of people who have suffered similar harm to collectively seek compensation. The concept is defined under 15 USCS § 77p, which outlines the criteria for such cases.
Covered class actions are primarily used in civil law, particularly in cases involving consumer rights, securities fraud, and other collective grievances. They enable individuals to join forces in litigation, making it easier to pursue claims that might be too costly or complex for a single person to handle alone. Users can often manage these actions with the right legal forms, such as those provided by US Legal Forms, which are drafted by experienced attorneys.
Here are a couple of examples of abatement:
Example 1: A group of investors files a covered class action against a company for misleading financial statements that resulted in financial losses for over 100 investors.
Example 2: A consumer rights organization brings a covered class action on behalf of individuals harmed by a defective product that affected more than 50 users. (hypothetical example)
The primary statute governing covered class actions is 15 USCS § 77p. This law outlines the framework for class actions in securities cases, detailing how claims can be filed and the rights of class members.
| Term | Definition | Key Differences |
|---|---|---|
| Class Action | A lawsuit where a group of people collectively bring a claim. | Does not necessarily involve the threshold of 50 persons. |
| Mass Tort | A civil action involving numerous plaintiffs against one or a few defendants. | Typically involves individual claims rather than a unified class. |
If you believe you are part of a covered class action, consider the following steps:
For complex situations, seeking professional legal assistance is advisable.
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| Attribute | Details |
|---|---|
| Typical Participants | More than 50 individuals |
| Legal Area | Civil law, securities |
| Potential Outcomes | Compensation, injunctions |
A covered class action is a lawsuit involving more than 50 individuals seeking damages collectively.