Class Action Litigation

The attorneys at the Paleudis Law Firm, LLC have years of experience in prosecuting and defending class action claims, including the defense of actions brought under the Fair Labor Standards Act, the New York Labor Law, and the Fair and Accurate Credit Transactions Act.

Occasionally our clients are faced with the threat of class action litigation, which is a frightening possibility for any business. A class action lawsuit is a legal action in which an individual plaintiff brings a lawsuit on behalf of a group or “class” of people who have all allegedly suffered the same injury. If the plaintiff prevails, a defendant is liable for the damages of the entire class, as opposed to merely those suffered by the plaintiff initiating the lawsuit. While this can be an efficient way to adjudicate similar legal issues, it can also jeopardize small businesses due to the amount of costs and fees associated with such a lawsuit.

Class actions have become controversial in recent years because of their potential to expose businesses to enormous liability based on issues of questionable merit. Oftentimes, these classes are made up of consumers who are accusing a particular business of some wrongdoing, which has allegedly harmed every member of the class. Although each member of the class may only have a claim for $1, the combined claims of hundreds or thousands of class members has the potential to financially cripple a small business even before the case goes to trial. Further adding to this financial exposure is the possibility – depending upon the law under which the plaintiff sues – of an award of attorney’s fees in addition to the damage award to the class members.

Should the class action claim proceed to litigation, courts will scrutinize the named plaintiff to determine if he or she can fairly serve as a representative of the class. More importantly, the court will weigh whether the asserted claims are ones that can properly be adjudicated in a class action. In making this determination, a court will consider such factors as (1) whether the issues in dispute are common to all members to all members of the class and (2) whether the persons affected are so numerous as to make it impracticable to bring them all before the court.

Two of the most common types of class action lawsuits faced by businesses, especially those in the hospitality industry, are claimed violations of the Fair Labor Standards Act (FLSA) for failure to pay employees minimum wage and/or overtime premium pay, and the Fair and Accurate Credit Transactions Act (FACTA), which authorizes suits against businesses for each credit or debit card receipt provided to a customer that does not properly truncate the card’s number or expiration date. The attorneys at the Paleudis Law Firm, LLC have extensive experience defending clients in these types of actions.

When presented with a class action lawsuit, and its potentially ruinous financial exposure, a business is faced with two choices: (1) roll the dice on litigation or (2) settle the matter as quickly and painlessly as possible. If you are ever faced with this unpleasant choice, you should reach out to the experienced attorneys at the Paleudis Law Firm, LLC for help.

To schedule an initial consultation with our experienced Class Action Litigation attorneys, please contact us by filling out and submitting our online “Contact Us” form, by emailing mjp@rudnerpaleudis.com, or by calling us at (212) 835-6768, (215) 331-6487 or (609) 480-3080.