Class Actions: Overview

by Practical Law Litigation

A Practice Note providing a foundational overview of federal class actions, which are governed by Rule 23 of the Federal Rules of Civil Procedure (FRCP). This Practice Note examines the key characteristics of a class action, including its advantages and disadvantages as a litigation device. It details the mandatory prerequisites for class certification under FRCP 23(a)—numerosity, commonality, typicality, and adequacy—as well as the different types of class actions available under FRCP 23(b). The Note also addresses the implicit ascertainability requirement and procedural strategies for managing multiple related actions, such as consolidation and Multidistrict Litigation (MDL). Key topics covered include the rigorous analysis involved in the certification process, notice requirements, the right to opt out, and the binding nature of a final judgment. Further, this resource discusses the court-supervised settlement process under FRCP 23(e), the appointment of class counsel, attorneys' fees, and the impact of the Class Action Fairness Act of 2005 (CAFA) on jurisdiction. It also explains the statute of limitations, including the American Pipe tolling doctrine.