Top Class Actions  |  May 27, 2020

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Pros and cons of a class action lawsuit

Have you received notice that you are being included in a class action lawsuit? Before deciding whether to file or join a class action lawsuit, it is often a good idea to weigh the possible pros and cons of a class action suit.

What Is a Class Action Lawsuit?

Class action lawsuits allow a group of plaintiffs to sue a defendant (or defendants) for injuries that were common among each Class Member, through either actions or inactions of the defendant. The Class Members are collectively represented by one or a few lead plaintiffs, who operate on behalf of the entire Class. Their claims should reflect the claims of all the Class Members, and they make decisions on behalf of the Class as a whole. A Class consists of enough individuals that it makes more sense to form a Class and have them represented by one or a few plaintiffs in a single proceeding than having everyone come before the court individually.

Class action lawsuits are often filed over issues like defective products, neglectful care, labor laws, or deceptive practices, which commonly have effects that apply to many different consumers in similar ways. For instance, hundreds or even thousands of customers may be affected in the same way after they each purchase the same defective product. Together, this group of people may form a Class and pursue litigation together.

What Are the Advantages of a Class Action Suit?

There are both pros and cons of a class action suit. Let’s start with the pros.

First of all, litigation costs of a class action would be divided among Class Members, which makes the cost for each individual much lower. Class action suits can include hundreds or even thousands of Class Members at a time.

Class actions offer plaintiffs a method of pursuing relief for smaller compensation amounts. Indeed, when they otherwise may not have chosen to pursue litigation by themselves, joining a class action can be a great option.

Pros and cons of a class action lawsuitA class action lawsuit goes before a single judge in one court, which is a more efficient process of dealing with the claims of each Class Member.

Class action suits also offer greater uniformity in decisions for defendants. With a single class action lawsuit, which can include hundreds or thousands of class members, there is one decision and one settlement to deal with. This carries with it a sense of certainty for defendants, as they are not left wondering about the law since they are only left with one concrete decision.

All plaintiffs in a class action will receive damages at the same time, as the award is decided upon collectively and then divided. This saves time, and Class Members will receive compensation in proportion to their injuries. By contrast, filing individual lawsuits may mean that those who file their lawsuits earlier receive compensation, but the defendant is no longer able to compensate those who file their lawsuits later. A class action lawsuit mitigates this potential risk.

It is very simple to join a class action lawsuit, and requires little effort on the part of Class Members. Indeed, Class Members usually receive notice that they have been affected by the defendants’ actions or inactions and are being included in the Class, though anyone can choose to opt out. It is the responsibility of the defendant, the plaintiffs, and the court to identify Class Members, and they are required to make a “reasonable effort” to contact each Class Member and notify them of the legal action taking place.

What Are the Disadvantages of a Class Action Suit?

When filing a class action lawsuit, each individual Class Member has very little control of the decision making that goes on. Instead of each Class Member having a say, the lead plaintiffs represent the Class and make decisions, including the decision to settle or not. Class Members who are not acting as representatives for the entire Class do not get to decide whether they want to settle or to continue to litigation.

Typically, class action cases are settled for financial compensation, coupons, agreements, for future services, or rebates. Sometimes, a plaintiff may be seeking other types of settlements, in which case a class action lawsuit might not be the most effective.

Sometimes, people who should be included in the class action may be overlooked, and may not find out about the legal action taking place. However, even if you do not receive direct notice that you are a Class Member, if you see an ad for a class action lawsuit and believe that you may be an eligible Class Member, there is still hope—looking at the legal notices of your local newspaper or searching online and finding a website with contact information can help.

If a class action suit ends up being ineffective, the Class Members have no other method of pursuing compensation. When they join a class action, individual Class Members lose the right to bring their own individual lawsuits against the defendant over the same issue.

It is important to consider the pros and cons of a class action prior to deciding to join or not. Filing or joining litigation can be a daunting prospect, so Top Class Actions can connect you with an experienced attorney. If you are deciding whether to join a class action lawsuit, and you are not sure whether or not the advantages outweigh the disadvantages in your specific case, it may be helpful to consult a class action lawyer who can discuss what you need and help you decide what to do next.

Consulting an attorney can help you decide if you have a claim, navigate the complexities of litigation, and maximize your potential compensation.

3 thoughts onWhat Are the Pros and Cons of a Class Action Suit? 

  1. Ann says:

    I was notified about a BCBS class action law suit. I of course qualify. If I fill out the form and submit it, can BCBS deny me future coverage?

  2. Cayle Martin says:

    I received a notice for class action settlement of a case that I didn’t know was taking place. Hoy vs linebarger. Would I be better off filing my own suit or accepting settlement? Is filing on my own an option after class action settlement?

  3. Julie volzer says:

    bed bugs from a wayfair bed frame. I purchased a bedframe from wayfair in July 2020. My son was bitten in his bed every night. Thought maybe spiders. We do not travel and have long medical history of social anxiety and don’t leave home. Cat was treated for skin irritations and fleas were not found. The cat doesn’t leave the infested room. February 2021 finding what we thought ticks in room. In March bugs identified as bed bugs by an exterminator.

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Please note: Top Class Actions is not a settlement administrator or law firm. Top Class Actions is a legal news source that reports on class action lawsuits, class action settlements, drug injury lawsuits and product liability lawsuits. Top Class Actions does not process claims and we cannot advise you on the status of any class action settlement claim. You must contact the settlement administrator or your attorney for any updates regarding your claim status, claim form or questions about when payments are expected to be mailed out.