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Class Action Lawsuits Explained By Oakland County Attorney

Class Action Lawsuits Explained By Oakland County Attorney

Hello my name is John Alexander and I am an attorney practicing in the Detroit Metropolitan area. I want to explain today what a class action case is. A class action case happens when a person is cheated out of their money either by an insurance company or just a regular company selling a product. The problem occurs when somebody loses 1, 2, 3, 4 or 5 dollars and that is too small of an amount of money to actually make a claim in court.

As an example, last year we represented a person that bought automobile insurance and paid four dollars. A four dollar premium for a benefit that was illusory. In other words, she was not going to receive this benefit. It was a bunch of hocus pocus. That four dollars that she spent was too small a claim to file a law suit and try to get her money back.

Instead, we filed a class action claim for her in federal court. At that point the judge will look at the claim, and see if there are many other small claims like this. The judge will look to see if they are identical. If they are the then they could all join this class or it becomes one lawsuit against the insurance company.

Our client who lost out of approximately four dollars, was joined by other parties. We were able to send notices to all the other customers of this insurance company. Approximately 135,000 of them and they all joined this class and then the claim became much larger against the insurance company. Even though the insurance company aggressively defended this case, we won. They realized they did something wrong, and they not only refunded all the money to the customers, but they agreed not to have this type of insurance product or take people’s money with this product ever again.

Class Action Lawsuits Explained By Oakland County Attorney

So if you have any questions of whether you might have a class action case or would like to be part of a class-action case, feel free to call me at 248-290-5600.

Class Action Lawsuits Explained By Oakland County Attorney

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