Class Action Lawsuit Frequently Asked Questions
2. What is the purpose of a class action?
3. How much will Girard Gibbs charge me for bringing a class action?
4. What is a consumer protection class action?
5. What is a securities class action?
6. What is a derivative action?
7. Does Girard Gibbs operate nationwide?
8. How do I know if I have a case?
Further Contact Information
If you have questions, please contact Girard Gibbs LLP at girardgibbs@girardgibbs.com.
1. What is a class action?
A class action is a legal device in which one or more individuals (class representatives) bring a legal action on behalf of themselves and all others (the class) who have been injured by the same practice. Class actions are often filed against large corporations, such as credit card banks or telephone companies, that use the same wrongful scheme or practice against many customers.
2. What is the purpose of a class action?
On an individual level, the goal of a class action is to rectify an individual's harm either monetarily or through injunctive relief. On a societal level, class actions promote efficiency and economy by allowing courts to process and adjudicate the claims of hundreds or thousands of persons in one action. Class actions also promote enforcement of laws. They level the playing field by aggregating many small claims, ensuring that individuals can still recover even where their individual injuries are too modest to warrant the expense of bringing a case, and, by the same token, ensuring that corporate wrongdoers do not profit from wrongdoing that has injured many people, just because each individual injury is "small."
3. How much will Girard Gibbs charge me for bringing a class action?
Nothing. Girard Gibbs does not charge a class representative for bringing a class action. We undertake all the costs of the litigation, and are awarded costs and fees at the successful conclusion of the litigation, based on the recovery obtained for the class. Then, the court will either approve a fee to be paid by the defendant; or, the court will approve reasonable fees paid out of the monetary fund obtained for the class. Our fees are contingent on the result obtained. If nothing is recovered for the class, then we are not reimbursed for the costs associated with prosecuting a class action nor are we paid for the time we have invested in the case.
4. What is a consumer protection class action?
A consumer protection class action is, most often, a class action to enforce consumer rights under Federal and State law. In an effort to ensure quick enforcement and to keep government costs down, legislators have passed laws allowing individuals who are the victims of scams and unfair business practices to enforce their statutorily created rights. Consumer protection class actions generally involve misleading or untrue advertising, overcharging for goods or services, inadequate disclosure of contract terms, fees or consumer rights, and failure to remedy problems or complaints. Many complaints involve insurance, individual and home loans, credit repair, telephone and internet services, banking and credit card practices, deceptive advertising of products and services, pyramid schemes, and product defects.
5. What is a securities class action?
A securities class action is a class action filed by investors who purchased a company's stock, which then declined in value due to fraud or other malfeasance on the part of the company and/or its officers and directors. In a typical scenario, the company will have failed to disclose material adverse information, or will have overstated revenues or earnings, keeping the share price artificially high. Securities class actions generally are brought under the anti-fraud provision of the federal securities laws including Section 10(b) of the Securities and Exchange Act of 1934 and Rule 10b-5 and the Securities Act of 1933.
6. What is a derivative action?
A derivative action is a lawsuit brought by a shareholder of a corporation, on behalf of the corporation, to enforce a cause of action against a third party, such as an officer or director of that corporation. Derivative actions most often involve charges that officers and directors are wasting corporate assets, or that a corporation's management or board of directors breached fiduciary duties owed to shareholders by negligence, mismanagement or self-dealing.
7. Does Girard Gibbs operate nationwide?
Yes. We operate nationwide, in conjunction with local counsel, and can bring cases in any court the circumstances warrant.
8. How do I know if I have a case?
If you feel you may have been the victim of unfair or deceptive business practices, please do not hesitate to email us or give our attorneys a call. We will be glad to discuss your experience and your rights with you, in confidence and without obligation, and will undertake any investigation we feel necessary.
