What are legal class actions?

A class action is the term given to a lawsuit against an organisation or an individual (the defendant), brought about by one or more plaintiffs on behalf of a larger group (known as the ‘class’).

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According to Wikipedia, class actions originated in the United States but are nowadays used across Canada and Europe in countries with civil law.

What types of legal class action are there?

Plaintiffs can act on behalf of a larger group to bring about a legal class action for any number of reasons. It may be something related to a product sold, known as product liability, or similarly, intellectual property. It may also relate to antitrust or competition, fraud or banking litigation. Pharmaceuticals and medical devices are also commonly the subject of class action cases.

What are the risks to the business?

For businesses that have a class action filed against them, it can be damaging to their finances, brand or reputation – not to mention employee morale. A lawsuit such as this can also damage the share price of the organisation in question as people lose faith in the brand owing to the loss of reputation.

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Getting the right advice

Providers of litigation funding such as https://www.novo-modo.co.uk/litigation-funding  can be absolutely invaluable in the case of a legal class action. Experts are able to offer specialist legal advice to help with your case, as well as to identify and assist with litigation funding to mitigate the financial risk of legal class action.

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Obtaining specialist legal advice early on can be beneficial for companies seeking to protect their reputation and brand before any defamation has had the chance to gain traction and attract attention.

Legal experts in the field of class action defence can assist businesses right from the beginning of the discovery process, by negotiating settlements which suit both parties or, ideally, early resolution solutions. Furthermore, specialists in litigation or class action can assist with any public relations issues associated with the lawsuit. Mitigation of risk is also a key aspect of protecting the defendant against defamation in these scenarios.