What is the purpose of a class action lawsuit?

A class action lawsuit is specifically designed to enable a group of individuals who have suffered similar harm or have common legal claims to join together and pursue their case collectively against a defendant. This type of lawsuit allows individuals to pool their resources, making it more feasible for them to seek justice, especially in cases where the damages for each individual may not be substantial enough to justify pursuing a lawsuit independently.

In the context of the other options, settling disputes privately typically refers to negotiated resolutions outside of court, which is not the primary aim of class actions. While class actions can sometimes lead to expedited legal proceedings, the core purpose is not focused on speeding up the process. Additionally, class actions do not directly create new laws; they primarily seek remedies for existing legal issues affecting the group of individuals involved. Thus, the central function of a class action is to allow those with similar claims to come together in a single legal action, enhancing efficiency and effectiveness in addressing their collective grievances.