Help with class actions
A class action is a form of lawsuit where a group of people with a shared situation collectively bring a legal claim against a company, instead of bringing several different individual actions. The process is common in the United States of America but is increasingly being used in the UK and parts of Europe by groups of consumers or by communities who are detrimentally affected by bad practice of companies. The process is seen as cost effective for those who cannot afford legal costs or for whom the financial incentive to bring a case is insufficient. The legal fees are less and shared amongst the group, or even deferred until an outcome is reached.
Class action
Overall, class actions are seen as more efficient as this legal process prevents the need to repeat cases. It can also help to strengthen a case when numerous cases are highlighting the same issue, helping develop standards and expert practice in the area. However, there are some criticisms that the process of sharing any settlements may not give a great financial reward to anyone considering the process. This is less of a concern in the financial sector, where class actions on behalf of shareholders who have lost money as a result of fraud, malpractice or illegal action, is common. Here, large financial companies often back cases and the volumes of money being recovered are significant. www.goalgroup.com is a specialist in this area, and states that in excess of 8 billion Euros of withholding tax remains unclaimed each year.