What is a "class action lawsuit"?

A class action lawsuit is defined as a collective legal action brought forth by a group of individuals who share similar claims against a common defendant. This mechanism allows for the consolidation of many similar individual lawsuits into one single case, which can be more efficient and economical than having each person file their own lawsuit. When successful, a class action can result in a single judgment that benefits all members of the affected group, addressing widespread issues related to consumer rights, employment practices, environmental damage, and other collective grievances.

This structure is particularly useful in instances where individual claims may be too small to pursue on their own, which effectively enables individuals to band together to challenge similar wrongdoings collectively.

The other options focus on different legal concepts that do not accurately represent the nature of a class action lawsuit. For instance, an individual legal action is typically a lawsuit filed by just one person, while mediation and arbitration are alternative dispute resolution methods that do not involve collective action.