Class Action Lawsuits in Ontario: How to Join and What to Expect

What Is a Class Action?

A class action is a lawsuit brought by one or more representative plaintiffs on behalf of a defined group (the "class") of people who share a common legal claim. Class actions allow individuals with small individual claims (which would be uneconomical to pursue alone) to band together and collectively seek redress. Ontario's Class Proceedings Act, 1992 governs class actions in the province.

Common Types of Class Actions in Ontario

• Data breaches and privacy violations
• Product liability (defective products harming consumers)
• Securities class actions (misrepresentation by public companies)
• Price-fixing and competition law violations
• Consumer protection class actions
• Mass tort claims (pharmaceutical injuries, environmental contamination)

Certification: The Key Threshold

Before a class action can proceed, it must be "certified" by the court. The criteria include: the pleadings disclose a cause of action, there is an identifiable class of two or more persons, the claims raise common issues, a class proceeding would be the preferable procedure, and there is an adequate representative plaintiff.

How to Join a Class Action

In Ontario, class actions operate on an "opt-out" basis — if you are a class member and do not opt out during the specified opt-out period, you are automatically included. This means you do not need to take any action to join most class actions. However, if you opt out, you preserve your right to sue individually but lose the benefit of the class action.

Class Action Settlements

The vast majority of class actions settle without trial. Settlement terms require court approval to ensure they are fair, reasonable, and in the best interests of the class as a whole. Class action lawyers typically receive a portion of the settlement as their fees — approved by the court.