Dictionary of Business Terms: class action
class action
a suit brought by one or more members of a large group of persons on behalf of all members of the group. If the court permits the class action, all members must receive notice of the action and must be given an opportunity to exclude themselves. Members who do not exclude themselves are bound by the judgment, whether favorable or not.
Dictionary of Finance and Investment Terms: class action
class action
legal complaint filed on behalf of a group of shareholders having an identical grievance. Shareholders in a class action are typically represented by one lawyer or group of attorneys, who like this kind of business because the awards tend to be proportionate to the number of parties in the class.
