The concept of "strength in numbers" applies to the class action lawsuit. In a class action lawsuit, a plaintiff or a group of plaintiffs represents a larger group of people with similar legal claims against a particular defendant or group of defendants. For example, a consumer who is injured by a defective product may be able to bring a class action lawsuit against the manufacturer of that product on behalf of himself and all other consumers harmed by that product.

Class actions serve a number of important functions in our legal system. Joining the voices of consumers or investors deters harmful behavior by persons or entities who have a responsibility to the public. Further, in situations involving hundreds or thousands of class members, it would be extremely burdensome to our court system to hear thousands of cases all involving the same claims. It also enables plaintiffs with small but important claims to sue and change the abuse. A good example would be improper billing practices by credit card companies or banks.

Typically, lawyers for the class are paid only what the Judge rules is fair, and are only paid out of the class recovery. In most class action lawsuits, class members are represented by attorneys who are paid on a contingency fee basis. This means that the lawyers do not receive compensation unless the lawsuit results in some relief for the class members. In the event that it does, the lawyers must apply to the court for payment of reasonable fees and expenses incurred in connection with the suit. The plaintiffs' lawyers will receive nothing unless a fee award is granted by the court.