Class Action Litigation in Alabama

A class action is a single lawsuit where one person or a small group of named plaintiffs represents a much larger group—called the class—who all suffered similar harm from the same defendant. Rather than thousands of people each filing separate cases, one case resolves everyone's claims at once. If the case settles or results in a judgment, class members share in the recovery after attorneys' fees are deducted.

If a certified class covers you, you should receive a written notice by mail or email explaining the lawsuit, who qualifies as a class member, and your options. You can also ask an attorney to search court records. The federal court Public Access to Court Electronic Records system (PACER), available at pacer.uscourts.gov, lets anyone search federal court cases for a small fee.

In most money-damages class actions, you have the right to opt out and keep your individual claim. The class notice will include an opt-out deadline, and if you miss it you are generally bound by whatever the court decides. If you opt out, you must file your own separate lawsuit before your individual statute of limitations expires.

Under Alabama Rule of Civil Procedure 23 and Alabama Code sections 6-5-640 to 6-5-642, the court must hold a full evidentiary hearing. The party seeking certification must prove four things: the class is large enough that individual lawsuits are impractical (numerosity), there are common legal or factual questions (commonality), the named plaintiffs' claims are typical of the class (typicality), and the named plaintiffs will fairly represent the whole group (adequacy). The burden of proof falls entirely on the party seeking certification.

Many Alabama class actions are filed in or removed to federal court under the federal Class Action Fairness Act (28 U.S.C. section 1332(d)), which gives federal courts jurisdiction when the total amount in controversy exceeds $5 million and at least one plaintiff and one defendant are from different states. Cases that do not meet those thresholds may remain in Alabama state circuit court. A defendant who wants to move a state court case to federal court must generally do so within 30 days of being served with the complaint.

Any proposed settlement must be approved by the court as fair, reasonable, and adequate before it takes effect. Class members receive notice of the proposed settlement and have an opportunity to object or opt out before the judge rules. Once approved, members who did not opt out receive whatever the settlement provides—commonly a check, voucher, or other benefit—and give up their right to sue the defendant separately for the same claims.

Generally, no—class members are represented by the attorneys for the named plaintiffs and share in any recovery without hiring their own lawyer. However, if your individual losses are much larger than the average class member's, or if you have unique claims, speaking with your own attorney about whether to opt out and file separately may be worthwhile.