A class action lawsuit is a lawsuit brought by a group of people with similar or the same injuries caused by a single action or product against a single defendant. Sometimes, a class action lawsuit is called a multi-district, MDL, or mass tort litigation. The defendant is usually a company.
The plaintiffs and the defendant involved in a class action lawsuit can choose to go to trial or attempt to resolve the case out-of-court. When the trial proceeds, the verdict may be liable or not liable for the injuries.
The types of class action lawsuits include:
A class action settlement is a type of personal injury settlement where the class of plaintiffs agrees to stop the class action lawsuit in exchange for some benefit from the defendant. Unlike a normal personal injury settlement, a class action settlement often needs to be approved by the court before it can be finalized to make sure that the settlement is in the best interest of the entire class.
Yes. Every person who is part of the lawsuit will receive a Notice of Settlement. The notice is sent by mail to all members of the class. The notice may also be advertised or published.
A settlement notice contains information on each plaintiff’s legal rights regarding the settlement. Also, plaintiffs may be required to respond by a specific deadline in order to claim their portion of the settlement.
The type of legal remedy varies according to each class action lawsuit. Some plaintiffs receive free services, products, or rebates. Other plaintiffs receive money damages. Typically, a defendant pays a lump sum amount that is divided into equal portions among the plaintiffs. Any legal fees are taken from the total award, instead of being paid by individual clients.
If you are a plaintiff in a class action lawsuit, it is important that you understand the settlement agreement. Once you accept the terms of the agreement, you are no longer allowed to sue the company. You should discuss the class action with a personal injury attorney to determine how to proceed.
Last Modified: 06-24-2015 09:21 AM PDTLaw Library Disclaimer
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