A class action is a type of lawsuit in which one or a few plaintiffs seek to represent hundreds or thousands of plaintiffs with the same or similar claims against the same defendants. Rules of procedure in state and federal courts permit class actions in limited circumstances for the purpose of resolving similar disputes more efficiently than if each plaintiff filed a separate lawsuit.
In North Carolina, class action lawsuits are governed by the North Carolina Rules of Civil Procedure, specifically Rule 23, which is similar to Rule 23 of the Federal Rules of Civil Procedure. A class action can be brought in North Carolina if there is a large number of plaintiffs (class members) with common legal or factual issues, a representative plaintiff (class representative) with claims typical of the class, and a class representative who can adequately protect the interests of the class. The purpose of a class action is to provide an efficient and economical means for handling numerous similar claims that might be impractical to litigate individually. The court must certify the class for the case to proceed as a class action, ensuring that the prerequisites for a class action are satisfied. Once certified, the class action binds all class members, except for those who choose to opt out if the option is available. Class actions can be filed in either state or federal court, depending on the specifics of the case, including the nature of the claims, the diversity of the parties, and the amount in controversy.