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Class action lawsuit

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Class action lawsuit

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Class action lawsuit

  1. 1. CHENNAI C2-A, Industrial Estate, Guindy, Chennai - 600 032. Tel: +91 - 44 - 22501318, 42107341 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Mob: +918277460648 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Mob: +919385432921 HYDERABAD Vatika Business Centre, Suite 10,3rd Floor, NSL Icon, Road No. 12,Banjara Hills, Hyderabad - 500034. Mob: +917901691606 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 2366216 EMAIL info@altacit.com WEBSITE www.altacit.com Class Action Lawsuit
  2. 2. CHENNAI III Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 24984821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com Definition • A class or collective action is defined as a lawsuit on which a single person or a small group of individuals represent the interests of a larger group before the court. • It is considered as a procedural instrument which enables one or more claimants to file a claim and pursue litigation on behalf of a larger group, class or entities with common rights and grievances. • The most commonly sought justice through class actions are for cases regarding pharmaceutical drugs, motor vehicles, consumer products and medical devices and through other conducts such as consumer fraud, misconduct, securities fraud etc. • Example: Johnson & Johnson 2018 case.
  3. 3. CHENNAI III Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 24984821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com Characteristic of a class action lawsuit. • Numerosity: The claims need to be similar, though not identical, and hence it is more practical for one lawsuit to resolve them than numerous lawsuits. • Similar facts or questions of law: the claims should be similar in nature i.e.; they should involve similar sets of facts or be asking the court to resolve similar questions of law . This would help in handling the claims in an easy manner. This concept is generally referred to as commonality. • Adequacy: certain plaintiffs are referred to as class representatives. It is the duty of these representatives to make sure that the interests of the entire class members are represented in a fair manner.
  4. 4. CHENNAI III Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 24984821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com Advantages of class action lawsuit • The class action suit brings together thousands of claims at one time that are impractical to bring together and deal individually making the process much more accurate and efficient . • If the defendant wins, the class lawsuit is dismissed and the individuals in the plaintiff group are refrained from filing a new or individual lawsuit regarding the same subject matter against the same defendant • If the plaintiff wins, the court finds the defendant liable for the injuries of plaintiff then the defendant has to pay damages regarding the same and the amount is divided among the plaintiffs.
  5. 5. CHENNAI III Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 24984821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com • lower cost to litigate: the cost to litigate the claims will be spread across many plaintiffs and hence it would be more affordable to litigate the case. Mostly, class actions are handled on a contingency fee basis i.e.; the plaintiffs do not pay for legal fees unless they win the case. • Opportunity to litigate: even if each individual claim is not for that much money, a class action lawsuit allows plaintiffs to pursue a worthy cause . For example: a telecommunications company maybe adding hidden fees to consumer bills in such a case it may not be worth thousands of dollars in legal fees for one plaintiff to pursue a claim for a few hundred dollars , in these sort of situations a class action allows litigants to seek justice.
  6. 6. CHENNAI III Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 24984821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com • Higher likelihood of the financial recovery: one of the main advantage of a class action suit is that a judgement against the defendant may mean that the plaintiff will certainly receive the money awarded as compensation. Hence, it makes sure that the damages are equally distributed amongst the plaintiffs. • Most experienced legal representation: class action suits normally involves so much of procedures and hence requires an experienced lawyer’s assistance who have gone through similar kind of cases in past. • Greater efficiency: it helps in a better working of judicial system as the case is determined by one judge thereby ruling out the possibility of inconsistent verdicts.
  7. 7. CHENNAI III Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 24984821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com Class action lawsuit under Indian context • Class action is not considered as a popular civil remedy in India. In writ jurisdiction representative action is brought into the public interest via a PIL (under Art. 32 & 226) and it has gained much popularity. • The filing of representative actions is recognised under Order 1, Rule 8 of CPC, 1908. under this rule, an individual or group of individuals can file an action for the benefit of all persons interested in the subject matter of litigation. This concept of collective action has seen a major development in 2015 in Nestle India Pvt. Ltd case
  8. 8. CHENNAI III Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 24984821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com • On 2013, the concept of collective actions has been introduced in section 245 of the Companies Act, 2013 which deals with the concept of specialised class actions by shareholders and depositors of a company. The Satyam scam, 2009 has played an important role in the introduction of Sec. 245. • Under Art. 32 and 226 of the constitution of India, 1950 which deals with the writ jurisdiction have included a new branch called public interest litigation or social interest litigations. They are generally initiated by the court suo moto or by public spirited individuals. Bandhua Mukti Morcha v. Union of India & ors AIR 1984 SC 802 and Bhopal Gas tragedy.
  9. 9. CHENNAI III Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 24984821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com Class Action Judgements • In a class action, the decision of court is applied to all individuals who are in the class. • All individuals who fit within the court’s definition of a class member is bound by the final decision of the court. • With the help of the parties involved and their attorneys, a plan of distribution is developed by the judge regarding the distribution of the amount awarded. Each member receives a certain percentage of the total amount. • When the parties in a class action lawsuit decide to settle, the presiding officer has to make necessary arrangement for the settlement making sure it is fair to all the parties involved.
  10. 10. CHENNAI III Floor, ‘Creative Enclave’, 148-150, Luz Church Road, Mylapore, Chennai - 600 004. Tel: +91 - 44 - 24984821 BANGALORE Suite 920, Level 9, Raheja Towers, 26-27, M G Road, Bangalore - 560 001. Tel: +91 - 80 - 65462400 COIMBATORE #1533, Trichy Road, Coimbatore – 641018. Tel: +91 - 422 - 6552921 HYDERABAD Flat No. A-701, Brindavan Apartments, Niloufer Hospital Road, Redhills, Hyderabad - 500034. Tel: +91 - 40 - 60506009 COCHIN Suite 49, 8th Floor, Centre A, Alapatt Heritage Building, MG Road, Cochin – 682035 Tel: +91 - 484 - 6506216 EMAIL info@altacit.com WEBSITE www.altacit.com Conclusion • A benefit of the class action format is its efficiency. The class action lawsuit brings together and disposes of thousands of claims of similar nature at a time, which in normal scenario is impractical to resolve individually and it seeks to ensure that all injured plaintiffs receive something. • It makes it easier for the claimants to bring collective actions for breach of law, share and minimize legal fees and thereby gets mutually benefited from a successful result or settlement. • It may be concluded that class action suits are an excellent platform to individuals who got a claim against a common defendant against a common cause and thereby making sure that justice has been served properly to all.

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