What is Class Action?

Individual or Class Action Lawsuit?

Class action, commonly called a “class action lawsuit” is a way for a group of people or businesses injured in a similar way by an action or product to bring one lawsuit representing all of them to court for trial, or to receive a settlement.  There have been a number of large and successful class actions brought against manufacturers of products such as asbestos or benzene or medications such as those used to treat psychiatric disorders or high cholesterol.

How Does a Class Action Lawsuit Work?

Most people become involved in a class action lawsuit when they receive a notice that they’ve been named as part of a class.  They are given an overview of the case, and are given the option to “opt out.”  If they opt out of the suit, they are entitled to either do nothing further, or to pursue their own individual lawsuit against the defendant.  If they do not opt out, they are considered a member of the class and if a settlement or award is reached, they receive some portion of it.  Once a person has participated in a class action against a particular defendant, they have no more rights to sue that same defendant for the same injury.

Disadvantages of Class Action Lawsuits

While for a few people, being part of a class action may be beneficial, most benzene, mesothelioma and pharmaceutical cases are best served individually.  (Actual results depend on the details of each case.)  Here are the reasons why:

1. Even though the overall award in a class action case can be larger than one in an individual lawsuit, the actual award each member receives is often significantly less because many people share the award, minus attorney’s fees and expenses.  For a family facing large medical bills and years of lost wages or benefits, the small percentage of an award they may receive is little help.
2. For many plaintiffs, the chance to have their day in court and tell their own story is extremely important.  They want the corporate wrongdoer to see the suffering they’ve caused their family and to be held accountable.  In a class action case, only a few representative members have the opportunity to testify in court and most victims never enter the courtroom.
3. Class action members that are not representatives of their class have little say regarding important case decisions such as whether or not to settle the case.
4. If you participate in a class action and are dissatisfied with the amount of the award you receive, there is little recourse.  You cannot file a separate, individual lawsuit against the same defendant.  There have been numerous cases where class action members have received appallingly small amounts while the attorneys pocketed a very large profit. 

For advice on whether you should participate in a class action or file an individual asbestos, benzene or pharmaceutical case, contact a SEGLaw attorney for a free consultation.