The law recognizes that there are certain unlawful practices which:
(1) may be repetitive in nature;
(2) may be directed to a class of people; and
(3) may be of limited economic consequence so that it is not feasible to prosecute the claim on an individual basis.
Assume that an insurance company decided to pay $5 less than what is owed on each claim and assume that practice affected 1,000 people. It is not practical or possible for each individual consumer to file an individual lawsuit for $5. A class action allows one individual consumer to file a claim to recover the $5 for his claim and to recover the $5 for the other 999 people cheated by the insurance company.
In other words, a class action is a way to hold the insurance company responsible for an illegal practice that is geared toward a wide range of people.
At the Law Offices of Matthew L. Sharp, we specialize in representing people injured by illegal insurance practices. Our specialty in insurance trade practices allows us to prosecute cases both on an individual basis and on a class-wide basis. Our class action practice generally focuses on the claims and marketing practices of life insurance companies and health insurance companies.
If you believe you have been injured by the wrongful practice of your insurance company, please contact us at (775) 324-1500.