Chances are you’re reading this article because you’ve received a notice telling you you’ve been named as a member of a class action. Participating in a class action may not be to your advantage. Here’s what you should to know about class actions and the process:
Class Action Overview
A class action is a lawsuit against a particular defendant or group of defendants that represents several or many plaintiffs, or members, at once. All of these members have been included in the case because they’ve all suffered similar injuries or losses from a negligent action or defective or dangerous medication, product or service. For more information about class actions and their disadvantages, visit the What is Class Action? page.
Class Actions – The Process
- Once it has been determined by the courts that a large number of people share similar injuries/losses from the same defendant, and that it would be too expensive for the courts to try these cases individually, a class action suit will be filed. Many people believe that class actions save the court system money and provide attorneys with large profits, but do little to protect the interests of those who’ve suffered the most: the victims. Data also demonstrates that class action cases filed in federal courts more often favor the defendants than the victims.
- Research will be done by the attorneys and representatives of the class to determine exactly who should be included as a member of the class.
- Notices are delivered to everyone named as a member of the class giving them an overview of the case and providing the option to “opt out” of the class action. If a member does not opt out, he/she is automatically included in the case and no longer has the right to file an individual suit against the defendant.
- The case will prepare for and go to trial. This can take a long time, often 2-4 years. As a member of the class action, unless you’re a class representative, you have no control over this part of the process and typically have no say in important decisions about your case.
- If a settlement is reached, you will receive a portion of the total amount, minus attorney’s fees and expenses. If a verdict is found against the defendant and an award is given, you will receive a portion of the total amount, minus attorney’s fees and expenses. Since there are usually many members in a class action, you will receive only a small percentage of the award or settlement amount. How much you will receive in either of these cases can not usually be determined ahead of time, and is often significantly less than if you had settled or received an award in an individual lawsuit. (Actual results depend on the details of each case.)
- If the case is not successful, you will be notified and that typically is the end of it, unless an appeal is filed.
Before you decide to stay in or opt out of an asbestos, benzene or pharmaceutical class action, be sure to consult a SEGLaw attorney for a free consultation. We’ll help you decide which option best serves your needs.