Joining a class action lawsuit can offer several benefits, but it’s essential for victims to carefully weigh the pros and cons of class action lawsuit processes before deciding to participate. So, what are the pros and cons of joining a class action lawsuit? Class action lawsuits allow many class members to collectively pursue legal action against a defendant whose actions caused similar injuries or financial harm. Instead of filing individual cases, individual plaintiffs may choose to join a class action to minimize litigation costs, streamline the process through one court, and seek monetary compensation.
However, unlike individual class members, lead plaintiffs and class representatives often assume more responsibility and may have more control over decisions. This can affect the entire class.
Our Texas class action lawyers explain how a class action case works, what class action plaintiffs can expect, as well as the pros and cons of joining a class action lawsuit.
With extensive experience in class action suits, the law firm of Reich & Binstock represents plaintiffs seeking justice against negligent corporations. For a free consultation, call 713-622-7271.
What Is a Class Action Lawsuit?
A class action lawsuit is a civil case filed by law firms on behalf of a group of people or businesses that have suffered similar losses due to the defendant’s actions. Unlike individual lawsuits, at least one class representative acts on behalf of all plaintiffs, who share common issues and damages.
Depending on the jurisdiction, class action lawsuits may be brought in either state court or federal court.
How Does a Class Action Lawsuit Work?
First, we’ll cover some of the most important terms to understand in a class action suit.
Lead Plaintiffs and Named Plaintiffs
These are the individuals filing the claim. If one person or multiple people are chosen to represent the other plaintiffs, their names will appear on the court case documents.
Class Members
The lead plaintiffs are the ones who actually file the class action lawsuit. However, the hundreds or possibly thousands of potential plaintiffs who are involved in the case are called the class members. A class member will be covered by a class action settlement should one occur.
Defendant
This is the individual, company, or corporation being sued by the entire class in the case. The defendants’ actions have caused similar injuries to all class members in a class action claim.
In some cases, individual class members may not know of their own involvement in a class action lawsuit until they receive a notice in the mail. Those who receive these notices may opt to join the class action in order to avoid the expensive litigation costs associated with individual lawsuits.
How Many People Do You Need for a Class Action Lawsuit?
There is no minimum number of people required to start a class action lawsuit, but court certification is crucial. With too few members, certification may be difficult. The more class members, the more likely the courts will certify the case, as a large number of similar complaints lends merit to the claim.
Additionally, the larger the number of potential class members, the more likely a large company or corporation is to respond to legal action. Companies may feel comfortable with ignoring one or two small, individual lawsuits. However, a class action lawsuit with dozens or even hundreds of class members will be difficult to ignore or sweep under the rug.
How to Start a Class Action Lawsuit
Class action lawsuits can be initiated by an individual or a group of individuals. A class action lawyer first investigates the case’s facts to determine its merit. If valid, they draft a “class action complaint,” detailing the issue and its financial or injurious impact on the lead plaintiff and other class members.
It then states that the purpose of the class action lawsuit is to recover financial compensation for the losses and injuries suffered by all of the individual plaintiffs. Once the attorney submits the complaint, a judge will decide whether or not the case may proceed as a legitimate class action claim. Judges will generally look at the following information when making their decision.
- The number of plaintiffs affected by the same issue.
- Whether or not there are similar legal issues and facts for all class members.
- Whether or not the case has adequate representation in the form of an experienced class action attorney.
- If the representative plaintiff or plaintiffs will advance the interests of the other class members by advancing their own interests.
How to File a Class Action Lawsuit
To file a class action lawsuit, typically one or more individuals (plaintiffs) must first identify a potential legal claim affecting a group of people with similar grievances. They then hire a class action attorney who investigates the claim’s merit. If viable, the attorney files a class action complaint in court, seeking certification of the class.
This process involves demonstrating that the case meets specific legal criteria for class action status, such as common issues among class members and adequate representation by the plaintiffs.
What Is the Best Way to File a Class Action Lawsuit?
Before you can file a class action lawsuit, we strongly recommend attending a free initial consultation with an experienced attorney. They should have considerable experience handling class actions on behalf of multiple plaintiffs. With this experience, they can counsel you on whether or not you have a genuine class action claim or if you should pursue a single lawsuit.
These cases can involve extremely complex legal issues. Because of this, you’ll need someone with experience to help you prove the four crucial elements of a class action suit.
- The factual and legal issues are common to all those involved as plaintiffs.
- There are too many people involved to file individual claims or pool their cases individually.
- One representative has a claim that is similar to the claims of the other class members.
- That representative fairly represents the interests of all class members.
An attorney can also counsel you on legal fees, potential monetary compensation, and other important information.
How Much Does It Cost to Start a Class Action Lawsuit?
Starting a class action lawsuit typically does not require upfront costs from the plaintiffs. Class action attorneys often work on a contingency fee basis, meaning they only receive payment if the case is successful, usually taking a percentage of the settlement or judgment awarded to the class. This fee structure allows individuals with valid claims to pursue legal action without bearing financial risk upfront.
What are the Pros and Cons of Being a Lead Plaintiff in a Class Action Lawsuit?
Pros of being a lead class action plaintiff include:
- Greater control: Lead plaintiffs help choose the law firm and influence litigation strategy and other decisions.
- Financial incentive: Representatives may receive a court-approved service award for their time and effort.
- Early access to information: Lead class action plaintiffs stay informed and involved in legal decisions throughout the case.
- No legal fees: Counsel represents lead plaintiffs at no cost; fees are paid from the settlement or judgment.
Cons of Being a lead plaintiff in a class action lawsuit:
- Time commitment: Lead plaintiffs may need to attend meetings, provide documents, sit for depositions, or testify.
- Public exposure: As the representative, your name, as a single plaintiff, will appear in the records, which may attract attention.
- Delayed recovery: Class actions often take years to resolve, with no guarantee of recovery.
- Binding outcome: Lead plaintiffs cannot later pursue separate claims if they are unsatisfied with the case result.
How to Join a Class Action Lawsuit
If you want to join an existing class action, most cases are “opt-out lawsuits,” meaning all affected individuals automatically join class action lawsuits unless they opt out. Generally, class members don’t need to take any specific action to join. They are usually notified of the claim by mail.
In fact, members of most class actions don’t get involved with the claim until the final award is determined by the court.
How to Find Out if I’m Part of a Class Action Lawsuit
As a class member, you may receive a notice by mail about your involvement. Additionally, you can check online class action sites and sign up for newsletters that notify you of new lawsuits and settlements. Regularly review these sites to see if any claims involve you. Carefully read notices for requirements before contacting a lawyer.
Why Did I Get a Notice of Class Action Settlement?
You received a notice of class action settlement because you are identified as a member of a group (class) affected by a lawsuit. This notice informs you about the settlement terms and your rights, such as whether you need to take action to claim benefits or opt out of the settlement. It aims to inform you of your involvement and any potential compensation or relief available to you as a class member.
What Types of Cases Can Become Class Action Lawsuits?
Certain case types are unfortunately common to see in the realm of class action lawsuits. Usually, these lawsuits have both high litigation costs and high compensation amounts. The following practice areas often see class action lawsuits.
- Environmental litigation, such as claims for water contamination or pollution
- Financial litigation, such as cases involving securities law or predatory lending
- Employment lawsuits, such as cases involving wage and hour laws, discrimination, or other matters
- Defective product claims
- Dangerous drugs and pharmaceutical injuries
- Defective medical devices
- Toxic tort cases
Examples of Class Action Lawsuits
As we stated before, there are a number of case types that develop into class action lawsuits more often than others. Below, we outline specific examples of class action lawsuits that the attorneys at Reich & Binstock currently handle.
- Roundup Lawsuit
- PFAS Lawsuit
- Hernia Mesh Lawsuit
- Social Media Addiction Lawsuit
- Uber Sexual Assault Lawsuit
- Talcum Powder Lawsuit
- Hair Relaxer Lawsuit
- Video Game Addiction Lawsuit
- Paraquat Lawsuit
- Exactech Lawsuit
- Hip Implant Lawsuit
- Philips CPAP Lawsuit
- Similac Lawsuit and Enfamil Lawsuit
Pros and Cons of Joining a Class Action Lawsuit
There are pros and cons to joining class action lawsuits, just as there are benefits and cons to filing lawsuits individually. What matters most is forming an attorney-client relationship to find out which option is better for your individual case.
Even if you suffered similar injuries from the same company or corporation, the facts of your case might be unique enough for an individual lawsuit. Below, we outline the pros and cons of joining a class action lawsuit.
Benefits of Joining a Class Action Lawsuit
- Lower litigation costs when compared to small claims courts
- Giving victims the opportunity to pursue justice against the defendant
- Greater uniformity for the claim as a whole
- Higher chance of receiving a payout
- More experienced lawyers will handle class actions
- Greater efficiency since one judge in one court will determine the outcome
Risks of Joining a Class Action Lawsuit
- Compensation may be more limited than for an individual lawsuit.
- You may not feel heard if you are not one of the class representatives.
- Progress may be much slower than for a single lawsuit because of the complexity of the case.
- You cannot reject a settlement offer to try to get more money if the class representatives agree on the proposed settlement.
Class Action Lawsuit Settlements
Even though the numbers associated with class action settlements are very large, this does not mean that every person will receive a large sum of money for their involvement. Speaking with an attorney can give you a better idea of what you might receive from a successful claim.
How to Claim Class Action Settlement
To claim class action settlement money, carefully review the notice you received. Follow the instructions provided, which typically involve filling out a claim form or submitting relevant information online or by mail. Ensure you meet any deadlines specified in the notice. Once your claim is verified, you may receive compensation according to the terms of the settlement.
How Much Money Do You Get from a Class Action Lawsuit?
Lead plaintiffs usually receive more compensation than other class members due to their increased responsibilities and involvement in the case. However, this is not always guaranteed. For specific details about compensation as a lead plaintiff, consult your class action attorney.
What Is the Average Payout for a Class Action Lawsuit?
Class action settlements in recent years have averaged around $56.5 million. The amount that each class member receives depends on a number of factors, including the number of class members.
How Long Does a Class Action Lawsuit Take?
This varies depending on a number of factors, including case complexity and whether or not the case is appealed. However, the average range is around two to three years. Some of the more straightforward class actions have been resolved in as few as six months, while others can take much longer than three years. Your attorney should be able to give you an estimate of how long your claim might take.
Is It Worth It to Join a Class Action Lawsuit?
Your involvement depends on your case. Becoming a lead plaintiff can influence future policy changes, while being one of many plaintiffs supports the uniformity of the claim. A negligent defendant should compensate victims.
Joining a class action can strengthen claims and increase the chances of a favorable settlement. If you decide to join, our attorneys are here to help.
Texas Class Action Lawyers
At Reich & Binstock, we understand the confusion when you receive a class action notice. To improve your chances of compensation, schedule a consultation with a class action lawyer. Our personal injury lawyers have extensive experience with class action claims.
We can evaluate and support your claim to help you fight for the compensation you deserve. For a free consultation, call 713-622-7271 today.
