class action lawsuit - Investment & Finance Definition
A court action in which many people file similar lawsuits and a judge agrees to group them together because of their similar claims. In such a case, a lead attorney for the class is appointed; however, the attorneys who filed the individual lawsuits also are allowed to share in any eventual fees. Class action lawsuits proliferated after the stock market began its descent following its peak in 2000. Hundreds of class action lawsuits were filed against different companies, especially telecom and technology companies that had experienced a disproportionate share of the gains from the bull market.