Key Things to Know About Class Action Lawsuits
Class action lawsuits are lawsuits filed by a group of people against a single, common party. When a group of aggrieved individuals brings a claim or dispute to a court, their large numbers give them a better chance of winning the case. That said, the rules surrounding this type of lawsuit are complex and differ between states and courts. So, one should research well before deciding to file a claim for a class action settlement.
Class action lawsuit process
Class action lawsuits are complicated and usually take a long time to resolve. Generally, these lawsuits follow a standard process.
- Filing the lawsuit
The process begins when a chief representative (called the lead plaintiff) files the initial lawsuit on behalf of a group.
Once the lawsuit is filed, the court determines whether it meets the requirements to be classified as a class action case. The court may check whether the proposed class is large enough (numerosity) and has common legal claims (typicality). If all goes well, the case will receive a class certification.
After the court certifies the class, group members are informed through a notice. The notice may also be published in relevant media outlets.
After receiving the notification, class members can either join or opt out of the lawsuit. Individuals who break free from the collective can pursue their own lawsuit if they wish to do so.
The parties that opt in now move toward settlement negotiations. This phase allows the opposing parties to reach a mutually acceptable agreement. The court decides whether the proposed settlement is enough and whether it compensates the class members fairly.
When a settlement is not reached between the sparring parties, the case proceeds to trial. During the trial, the plaintiffs must prove their case before a judge and/or jury in a courtroom .
Class action settlement explained
Cases that end in settlements make it legally mandatory for defendants to compensate plaintiffs who have suffered injuries or had bad experiences because of their defective products or fraudulent activities. The amount of money or other compensation people can claim depends on the type of class action settlement and the terms of the deal .
When a settlement is reached, the settlement administrator sends notices to affected class members. Alternatively, such notices may be published in newspapers, online portals, and magazines. If someone comes across such a published notice and realizes they qualify for benefits, they can fill out a claim form.
Filling out the claim form
Before filling out the form, plaintiffs must carefully read the definition of a class member to ensure they qualify for benefits from the settlement. If eligible, they must check the claim filing deadline to ensure the settlement administrator is still accepting claims.
There are several ways to get access to a claim form. Sometimes, the forms may be sent directly to class members by email or mail. Many claim forms are also available online at a designated settlement website. If eligible class members cannot locate a form, they can contact the settlement administrator for help. For the settlements in which the benefits are automatically sent to the eligible class members who chose against opting out of the lawsuit, the class members do not need to fill out a claim form.
Class members will be asked to enter certain information in a claim form, such as their name, contact information, address, and other details needed to process the claim. Some settlements require class members to submit documentation, such as invoices, proof of purchase, and other paperwork proving they are eligible to receive settlement benefits.
After filling out and submitting the form, the next step is to wait until the settlement becomes final. The time it takes to receive compensation varies from settlement to settlement.
Settlement notices
After the lawsuit reaches a settlement , class members must keep an eye on their mailboxes and email accounts, as they will likely receive a notice informing them about the same. Class members who receive such notices will know that their legal rights were affected and that they are rightfully entitled to compensation. The notice usually details the steps to be completed to receive settlement benefits. Following these steps will lead to claimants receiving compensation quickly, without much hassle.
People who do not qualify for settlement benefits should not file to receive compensation. If they do so, they will be committing perjury and will be penalized by the court in various ways. Falsely making claims also harms the other eligible class members and is viewed as a fraudulent way to claim compensation.
