You might have heard about class action lawsuits and wondered what exactly they entail. A class action lawsuit can be long and complicated compared to an individual filing, so why would lawyers take a class action to court? This article will discuss the basics of the class action lawsuit and explain when they are appropriate.
A class action lawsuit takes place when multiple aggrieved parties – ranging from dozens to thousands of people – file against certain other parties and allege that they received damages from that party. Class actions occur when a party, usually a large business, acts in a way that negatively affects a large group of people. Instead of filing thousands of individual lawsuits, which might be hard to win and financially untenable, a class action lawsuit allows for smaller affected parties to come together to sue a larger entity. Suppose a drug, car, or appliance is found to be faulty. In that case, any individual who purchased or had a negative experience with the product and was found to be part of the class is eligible for a portion of the settlement.
Class action lawsuits are also essential to keep businesses and companies accountable. Scamming or fraudulently obtaining even one lone dollar from millions of people adds up fast. Class actions aim to rectify these injustices, no matter how small. Some people may opt-out of the class action lawsuit in order to pursue personal legal action in the future.
Why Should I Join A Class Action Lawsuit?
If you have been alerted by a class action notice, you may already be part of a class action case. Lawyers working on class action lawsuits work to identify parties they feel meet the definitions of the affected class as put forth by the court. No action is needed if you receive a notice and wish to stay on as a claimant on the case. You will be eligible for your portion of the settlement once a settlement is reached between all parties. So, the main reason not to join a class action is if you intend to sue the party yourself. You will not be bound by any resolution that occurred with the class action. If this is not your intention (and it often is not feasible for most people), then simply wait for the settlement and input your claim if necessary. Some people have negative opinions on class action lawsuits because of the hefty lawyer fees associated with them. However, most of the money goes out to affected parties, sometimes without them knowing that a case is ongoing.
What is A Lead Plaintiff?
Lead plaintiffs are the people who get the ball rolling. Lead Plaintiffs are aggrieved parties who find an attorney and begin the process of a class action lawsuit. Lead Plaintiffs often receive a higher payout as well. It is not uncommon for class action checks to be a few dozen dollars at most, but lead plaintiffs can earn much more. Most attorneys in these cases only get paid if you get paid and will often cover all of your expenses having to do with the trial. Lead Plaintiffs, however, have more responsibilities. They work more intimately with the attorneys, appear in court, have their name on the filing, and even have the power to decline a settlement offer. If you believe you have a case worth taking on, consider reaching out to a law office and becoming a lead plaintiff on a case.
Do you need advice about a class action lawsuit that you are involved in – or do you wish to investigate becoming a lead plaintiff? Call the personal injury attorneys at Probinsky & Cole for an initial consultation and to get your questions answered.
