Which of the Following Statements About Class Action Lawsuits Is

question 36

Multiple Choice

Which of the following statements about class action lawsuits is (are) true?
I.Law firms,rather than individuals who are injured,often initiate the lawsuit.
II.The cost of filing a single lawsuit on behalf of may aggrieved parties is less than the cost each of the parties filing a separate lawsuit.

• A)I only
• B)II only
• C)both I and II
• D)neither I nor II

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Definitions:

Strike Suit

A lawsuit with weak merits, often filed by a shareholder against a corporation's executives, hoping for a settlement.

Out-Of-Court Settlements

A resolution reached between disputing parties without the need for a court trial.

Complaining Shareholders

Shareholders who express dissatisfaction with management or company actions, often leading to lawsuits or demands for changes.

Class Action

A legal proceeding in which one or more plaintiffs file a lawsuit on behalf of a larger group of people who are similarly affected.