Final answer:
A class action lawsuit is a legal action where a group of people with similar claims bring a case against a defendant. The pros include efficiency, equal access to justice, and accountability, while the cons include the distribution of damages, settlement pressure, and loss of control.
Step-by-step explanation:
A class action lawsuit is a legal action in which a group of people with similar claims collectively bring a case against a defendant. These lawsuits are typically used when a large number of individuals are affected by the same issue or harm, such as defective products or unfair business practices.
The pros of class action suits include:
- Efficiency: Combining similar claims into one case saves time and resources for both the court and the parties involved.
- Equal Access to Justice: Class actions allow individuals who may not have the financial means to file a lawsuit individually to have their claims heard.
- Accountability: Class actions hold defendants accountable for their actions and can result in changes to policies or practices.
The cons of class action suits include:
- Distribution of Damages: The distribution of damages among a large group of plaintiffs can be complex and may result in relatively small individual payouts.
- Settlement Pressure: Defendants may be more inclined to settle to avoid the risk of a large judgment, even if they believe they are not liable.
- Loss of Control: Participants in a class action may have limited control over the case's strategy and decision-making.