# Class Action

*Regulation & Compliance — Finicade finance glossary*

A class action lets one lawsuit represent many people with the same claim, making small individual harms economically worth litigating. Securities class actions follow most large share price collapses tied to alleged misstatements. Recoveries per claimant are often modest while the deterrent effect on disclosure practice is substantial, which is the strongest argument in their favour.

**Also known as:** class action lawsuit, collective action, securities class action

**Related terms:** [Arbitration Clause](https://finicade.com/glossary/arbitration-clause), [Enforcement Action](https://finicade.com/glossary/enforcement-action), [Disclosure](https://finicade.com/glossary/disclosure), [Statute of Limitations](https://finicade.com/glossary/statute-of-limitations), [SEC](https://finicade.com/glossary/sec)

Source: https://finicade.com/glossary/class-action