Consumer / Employment

Consumer / Employment Class Actions

When companies adopt policies and business practices that injure groups of consumers, class litigation often represents the only means of deterring misconduct and achieving redress. Types of corporate wrongdoing that can be addressed through class litigation include false advertising, the imposition of undisclosed or unfair fees, violations of contract rights, the sale of unsafe or defective products, and infringement on consumers’ right to privacy.

Successfully litigating consumer class claims depends on a clear understanding of how the policy or practice at issue affects consumers as a group; claims can be litigated on a class-wide basis only when the defendant’s conduct has a similar impact on enough people to justify collective action, and when the representative plaintiff has claims typical of the other members of the class.

Wage & Hour

When employees see fewer employment options for themselves outside of their current work situation, they may also find themselves called upon to put in hours in excess of the legal limits put in place by our legislatures. As a result, employees find themselves in unsustainable work situations, working extra hours for little or no pay; and feeling powerless to do anything about it.

Other employees can be victimized by having their jobs misclassified as salaried (exempt) when they should instead be classified as hourly (nonexempt), resulting in lost overtime pay. Additional lost compensation may include unpaid commissions, bonuses, unpaid vacation time and the simple nonpayment of wages, including a failure to observe minimum wage laws. If you are a salaried employee who does not manage anyone beneath you, your job may in fact be misclassified and you may be losing wages to which you are entitled.

Consistent with our commitment to investing in cases early, we conduct thorough pre-filing investigations, engage experts to perform preliminary analysis, and work to locate and interview multiple class members to fully understand the relevant policy or practice.

Consumer Actions

The consumer class action lawsuit is one of the most effective tools consumers have to challenge unfair and deceptive business practices. The relatively small amount of damages involved in most consumer claims makes it extremely difficult, and in some cases impossible, for relief to be sought through individual lawsuits. Without the class action device, most consumers would have no realistic chance of recovering monies lost to large corporations or business entities through overreaching, deceptive or fraudulent tactics.

How does a case become a class action lawsuit?

To pursue a class action, a group of individuals must demonstrate that they have similar injuries and common legal claims against a defendant, usually a corporation or other business entity. A class action is pursued by a lead plaintiff, also known as a class representative, on behalf of all persons who were similarly wronged by the defendant. If there is a recovery in a class action, either through a jury verdict or a settlement, individuals who are members of the class will share in the recovery. Pursuing a lawsuit against a large corporation can be a lengthy and expensive process. For that reason, the cost (in terms of both time and resources) and risk of bringing a lawsuit against a large powerful and well-funded corporation discourage many people from trying to protect their rights. Many consumers will simply decide to “write off” their losses, rather than trying to recover their damages. A class action allows consumers to pool their resources, so claims of hundreds or thousands of similarly situated consumers can be pursued in a cost-effective way.

Although some lawyers and law firms have taken advantage of the class action device, in the right circumstances and with the appropriate case, the class action lawsuit remains an essential tool in the hands of consumers. In California and in many other states, there is close supervision of class action lawsuits from beginning to end to ensure that such lawsuits proceed in an efficient manner and in a way that is fair to all concerned. For instance, a judge must decide that a lawsuit is appropriate for class action treatment in that the case presents common facts and claims. Also, a judge must approve any proposed class action settlement to guarantee that the proposed settlement is fair to those who might be affected by the case.

Consumer protection claims are becoming all the more common as unscrupulous businesses and entities seek quick and easy or unearned profits by committing consumer rights violations. According to the Federal Trade Commission (FTC), nearly 25 million Americans – more than 11 percent of the adult population – are the victims of consumer fraud each year. Consumer scams and unfair business practices are often perpetrated on people when they are at their most vulnerable. Unscrupulous companies often take advantage of the elderly, the working poor, and those who do not regularly undertake complex or document-intensive loan or business transactions. Many of these unsuspecting consumers do not recognize that their consumer rights have been violated and that they have viable, enforceable consumer protection claims.

In addition to outright scams, a number of corporations and businesses every year commit unfair or deceptive business practices. These unfair business practices may cost an individual borrower or consumer only a modest sum, perhaps $10 or so per month in monthly fees or charges or hundreds of dollars in fees or charges in larger transactions, such as a home loan. When a business repeats these practices across the board and against hundreds or thousands of consumers, the business may reap millions of dollars in unfair, unearned windfall profits. In such cases, consumer protection claims are often appropriate and can help “level the playing field” between innocent, unsuspecting consumers and large, powerful and sophisticated corporations engaged in systematic deceptive business practices.

We have extensive experience litigating against large corporations and pursuing consumer protection cases. If you believe that you or someone close to you may have been victimized by overreaching or unfair business practices, please contact us for a free consultation regarding your legal rights.