Class Action Lawsuit FAQs

A class action is a lawsuit that is brought by one or more persons on behalf of a larger group of people whose claims share common legal and/or factual issues. Class actions provide a cost-effective way for groups of people with common interests to pursue a legal claim.

Class proceedings are a “procedural vehicle”—they do not alter the content of the rights and protections that Canadians have under the law. Rather, class proceedings empower many people to sue the same defendant(s) for a common wrong in one action, as opposed to filing hundreds, or even thousands, of separate civil proceedings.

Class actions in Canada can be filed across a wide range of legal areas. Common types include consumer protection, pharmaceutical litigation, securities, product liability, price fixing, humanitarian and institutional abuse, environmental, employment, and more. If a large group of people has been harmed in a similar way, a class action may be the most effective legal route.

From a class member’s perspective, Canadian class actions are generally structured the same as U.S. class actions.  The main difference between Canadian and U.S. class actions are as follows:

• In the United States, there is extensive discovery before certification. Whereas, in Canada, there is limited discovery before certification, and any pre-certification discovery is limited to the issues to be determined at certification.  Discovery is the process whereby the parties exchange relevant documents and depose or examine knowledgeable witnesses. 
• The United States has a higher evidentiary threshold for certification. 
  • The United States requires proof that the certification requirements are met on a balance of probabilities.  In Canada, the standard of proof is “some basis in fact”. 
  • The United States has predominance and superiority requirements.  Predominance requires the plaintiff to show that the common issues predominate over any issues that need to be determined on an individual basis.  Superiority requires the plaintiff to show that a class action is superior to other available means of adjudicating the matters at issue.  In Canada, only Ontario has predominance and superiority requirements. 
  • The United States also has a “typicality” requirement whereby the representative plaintiff’s claims or defenses must be typical of those of the class.  In Canada, the representative plaintiff cannot have a conflict with other class members in relation to the common issues, but does not need to be a “typical” plaintiff.
  • Jury trials are also more common in the United States.  In Canada, most trials are heard by a judge.

There may also be differences in the substantive area of law and available damages.

Yes. If you qualify under more than one class definition, you can be part of multiple class actions at the same time, as long as they don’t involve the exact same claim or legal issue.

Class actions are complicated legal proceedings against well-resourced defendants. The process can, at times, be overwhelming and confusing. If you believe you have been wronged, but have questions about where to begin, please complete the ‘Propose a Class Action’ form.

According to the Supreme Court of Canada, there are three primary advantages to class actions:

1. Behavioural modification. If you do something bad and never face consequences for your actions, it may be tempting to continue doing bad things. Simply put, the prospect of facing a class action acts as a deterrent to engaging in illegal conduct.
2. Access to justice. By grouping similar claims together, class actions spread the cost of litigation across many people, thus making it possible for wronged individuals to bring an action against well-funded defendants.
3. Judicial economy. In a world without class actions—where multiple individuals may attempt to sue a company or the government based on the same events—a judge may be required to hear essentially the same case over and over again. Class actions prevent this potential duplication of effort, allowing judges to devote more resources to hearing other cases.

Class action lawsuits are an efficient way to litigate common issues. Class action proceedings group many people together to sue the same defendant(s) for a common wrong in one action, as opposed to filing hundreds, or even thousands, of separate civil proceedings.

Mass tort actions, on the other hand, treat each injured party individually, rather than as a group. These plaintiffs may have different interests, and the outcomes of the cases can vary.

Litigation, generally, takes a long time. Class actions, even more so. More procedurally complex than standard litigation—with extra procedural steps and potentially protracted settlement negotiations, among other time-consuming elements—class proceedings may take several years to well over a decade to reach full resolution.

Certification is the motion where the court determines whether the action can properly be pursued as a class action.

The court will consider factors such as whether the claims of the class members raise common legal and/or factual issues and whether a class action is the preferable method of pursuing the claims (as opposed to other methods, such as individual actions).

A representative plaintiff is the person who brings the claim on behalf of a larger group with similar experiences, known as the “class.”

A representative plaintiff does not need to have any special legal knowledge or training.  They simply need a basic knowledge of the matters at issue and be able to provide instructions to the lawyers, as needed. 

The lawyers do the heavy lifting in pursuing the class action and will typically seek to minimize the burden on the representative plaintiff. 

Class action lawyers are usually paid on a contingency basis. This means that class counsel is only paid if successful. Class counsel are paid a percentage of any settlement or court award. Class counsel fees are subject to court approval.

Siskinds has dedicated webpages for each of its class actions.  Typically, that webpage will describe who is affected by the class action (a “class member”).  If you think you may be affected by a class action, our team can assess your situation and determine whether your case meets the criteria for inclusion.

If you fall within the “class definition”, you are automatically included in a class action unless you “opt out”.

The class will be defined to reflect the matters at issue in the class action.   For example, the class in a consumer protection claim might be defined as “persons in Canada who purchased a widget between January 1, 2020 and December 31, 2024.”

There are no steps required to “join” a class action. Assuming you fall within the scope of the class definition, you are automatically included in the class action unless you “opt out” (exclude yourself from the class action). 

Most class actions in Canada are brought on behalf of persons in Canada.  However, in some circumstances, the courts have certified a class that includes international class members.  You should review the dedicated website for the class action.  Typically, that webpage will describe who is affected by the class action (a “class member”) and will specify if the class is international in scope.

Yes. Once the class action has been certified (authorized in Quebec), you will have the opportunity to opt out (exclude yourself from the class action) within a period of time to be determined by the Court. If you exclude yourself, you will not be entitled to any compensation awarded under a settlement agreement or court order. You can, however, pursue your own action on an individual basis.

Generally, class members will only want to exclude themselves from a class action if they intend to bring their own individual action. In most cases, it will be more economical to participate in the class action because the legal costs will be shared among a very large number of people.

If you do not opt out, you are bound by the result of the class action and cannot start your own lawsuit for the same issue. If you wish to pursue an individual claim, you must opt out by the court’s deadline.

To protect your rights, you should:

1. Keep any documents that you have relating to the class action.  The relevant documents will depend on the nature of the case.  They could include purchase records, securities trading records, and/or medical records.
2. Stay informed about the status of the class action.  You can do this by registering to receive updates about the class action on the relevant case page.

In a case dealing with a personal injury claim (for example, class actions relating to food contamination or pharmaceutical devices or drugs), you should also:

1. Keep a record of medical expenses incurred — appointments not covered by your provincial health care provider, prescriptions, medical devices, etc.;
2. Keep a record of all medical treatments, including the names and contact information of the health care provider (doctor, surgeon, physiotherapist, etc.);
3. Keep a journal of symptoms and note any times when you are unable to attend work or school as a result of your symptoms.

If you have not already done so already, you can contact Siskinds, so that we can help you obtain your relevant medical and pharmaceutical records. The more time goes by, the more difficult it may be to collect this information.

All information will be used in accordance with our Privacy Policy. 

If you are a family member of the class member, you should keep record of:

• Any expenses reasonably incurred for the benefit of the class member;
• Travel expenses incurred in visiting the class member during his/her treatment(s) and/or recovery(ies);
• Any services provided for the class member as a result of the injury (i.e., nursing, housekeeping); and
• If the class member is deceased, any funeral expenses reasonably incurred.

Notice is required at all major steps of a class action – including certification, outcome of any common issues trial, hearings to approve a proposed settlement, and the claims process.

You should read any such notices carefully, as they may include deadlines for acting.  

You are automatically included in a class action unless you opt out.  However, to participate in any settlement or court award, you must act before any court-imposed deadline for filing a claim.  It is important to register to receive updates about the class action (you can usually register via the dedicated webpage for the class action and act promptly upon receiving a class action notice).

Class actions often have strict deadlines for opting out, objecting to a settlement, submitting a claim, etc. Missing a deadline could forfeit your ability to participate in the class action and receive compensation, so be sure to mark these dates on your calendar.

You can receive updates by registering on the dedicated webpage for the class action or by contacting the law firm representing the class. Siskinds provides updates via email and posts important notices on their case-specific pages.

Once a class action settlement is approved by the court, the claims process begins. Eligible class members are usually notified and must submit a claim to receive compensation, unless the settlement allows for automatic distribution.

Typically, class counsel develops a protocol for the distribution of settlement funds to class members. Depending on the type and complexity of the action, experts may be engaged to help design the distribution protocol. The distribution protocol governs who may claim for funds, what the requirements are for a claim, and the relevant deadlines. The distribution protocol must be court-approved.

Details about the proposed distribution are typically disseminated in a notice to class members. If you received a notice about a class action distribution and you disagree with the proposed distribution, it is important that you raise your objection by the deadline stated in the notice so that your objections can be put before the court at the approval hearing. If you have any questions about this process, you should contact class counsel.

Finding out that you are entitled to money can be exciting. If you receive an email or notification that you are entitled to funds flowing from a class action settlement or if you see an online ad about a class action distribution, it is important to remain vigilant to assess for potentially fraudulent activity.

See our blog Class Action Settlements and Notices for steps you can take to ensure a class action distribution is legitimate.

Assuming success on the part of the class either through settlement or monetary judgment in favour of the class, those funds are usually distributed directly to eligible class members.  The length of time to administer a class action settlement will depend on factors such as the complexity of the distribution, the number of claims filed, and whether there are any class member appeals.

Assuming success on the part of the class either through settlement or monetary judgment in favour of the class, the amount of money you might receive depends on several factors such as the amount available for distribution, the size of your claim, and the number and size of all approved claims.

Typically, class action payments are not taxable.  However, you should consult with an accountant. 

If you have any other questions about class actions,

• Contact us by phone at 1.800.461.6166.
• You can review our Guide to Class Actions
• Email us at [email protected]