If a group of persons has incurred losses, it is possible in some cases to have the group take action against the party that caused the losses. A foundation or association specifically established for that purpose can represent the full group. This means that claimants do not need to start individual procedures. Instead, a claim can be submitted to the court of law in a single large case for all parties. Alternatively, the foundation may settle with the party causing the losses. The court of law can declare a compulsory extension applicable to all persons concerned. This way of group settlement of losses incurred by many people is unique to the Netherlands, which is why some foreign parties come to the Netherlands to settle a claim.
The benefit of class action is that the legal costs can be shared by the group members and that the group is presented as one unit – together you are stronger. Well-published examples of group claims include profiteering policies, shares leasing and the VW diesel scandal.