- A consumer product claim is when a defective product causes injury or harm to a large number of people who have purchased the same product. Actions that can cause injury or harm include improper or faulty labeling, defects in the design of a product, and a flaw in the manufacturing process. When a product is found to be defective or causes harm, a recall of the product will be initiated and a lawsuit is generally started to collect damages for any injuries that have been suffered.
- A consumer action is when a lawsuit is initiated for injury that has been sustained by consumers as the result of a company's unlawful practices. Class action lawsuits are often the result of illegal charges on bills or penalties that are prohibited from being assessed. Additional consumer actions can result when a company appears to be violating consumer protection laws. Companies can also face class action lawsuits for making a false or misleading claim about a product's effectiveness or features.
- Employees who are in the minority at a particular employer can bring a class action lawsuit when discrimination seems to occur. The most common type of class action for benefit claims is when an employer appears to be violating the Employee Retirement Income Security Act, or ERISA. This can result from the practices of a health or retirement plan, such as benefit payments, that are in violation of the law.
- Class action lawsuits are typically initiated from personal injury claims when injury occurs from an unsafe situation at a company or business. An unsafe condition is where many people are seriously injured or killed because of negligence or failure to recognize hazards that can cause injury. Product liability class actions can result when a product that is on the market or being recalled is defective or unreasonably dangerous and causes harm.
- Individual stockholders of a publicly traded company can bring a securities class action when they feel that a company has caused harm by withholding important information. Harm typically includes losses from investments when a company misstates earnings, engages in improper conduct, or intentionally withholds information from being released to investors.
