Consumers who have been subject to damages or injuries from defective products, employment or wage violations, invasions of privacy, medication side effects or financial fraud may be looking for ways to pursue compensation and wondering: Do class action lawsuits work?
Yes, class action lawsuits work. Plaintiffs in class action lawsuits may be able to recover compensation for damages against them without putting in all of the time, money or effort required to file an individual lawsuit. Compensation and settlements recovered by class action lawsuits may range from cents for each plaintiff, to thousands of dollars.
Even if no compensation is recovered, plaintiffs in class action lawsuits regarding defective products may receive a coupon for a replacement product.
Additionally, regardless of whether compensation is awarded to plaintiffs, class action lawsuits may result in changes to laws and regulations and increased protections for consumers.
What are the benefits of class action lawsuits?
Class action lawsuits can provide significant compensation to class members and plaintiffs — although this is not always guaranteed.
In a traditional lawsuit, a plaintiff brings claims on behalf of themselves. Their allegations pertain only to the harm they have allegedly experienced.
Class action lawsuits differ from traditional lawsuits because the plaintiff seeks to represent a “class” of similarly situated consumers. Classes can include hundreds, thousands or millions of people who have experienced the same or similar issues as the plaintiff.
One of the biggest benefits of class action lawsuits is they resolve a large number of claims all at once. If consumers were not allowed to litigate an issue in bulk through a class action lawsuit, they would each have to spend the time and effort it took to resolve the claims individually.
Additionally, it would require significantly more time to litigate thousands of individuals lawsuits — meaning class actions help resolve issues more quickly for both defendants and consumers.
Plaintiffs who file class action lawsuits do not need to actually know all of the other potential class members who may be covered by the lawsuit. If there is a good faith basis to believe there are many other consumers who have been harmed by the same defendant in similar ways, a court is likely to certify a case as a class action lawsuit.
While some class action lawsuits regarding defective products are classified as “no proof of purchase” lawsuits, and allow consumers to join without proving they purchased the product or service, many lawsuits are called “proof of purchase” suits and require consumers to show a receipt or other document proving they actually owned the defective product.
Many class action lawsuits have resulted in large financial payouts for plaintiffs, or updates to laws and regulations in order to better protect consumers in the future. In addition to the financial compensation class action plaintiffs may be able to recover through a lawsuit, class action lawsuits may be a successful way to effect change.
Class action lawsuits have played a role in racial desegregation, reducing pay and gender discrimination, and regulating dangerous products, materials or chemicals.
For many plaintiffs considering the question “do class action lawsuits work,” reviewing the history of class action lawsuits may be informative. Many famous class action lawsuits have led to huge payouts for victims or changes to laws and regulations.
In the 1950s, Brown v. Board of Education of Topeka was instrumental in desegregating schools and increasing the legal rights of Black student in the United States.
In 1988, a Minnesota class action lawsuit filed by several women who worked in the mining industry resulted in changes to state and federal laws protecting workers from harassment and discrimination. Lois E. Jenson v. Eveleth Taconite Co. resulted in financial compensation for all 15 female plaintiffs, as well as setting the precedent for future class action lawsuits regarding gender discrimination and employee rights.
However, filing a class action lawsuit does have a few drawbacks.
Plaintiffs who file or join class action suits give up their individual rights to sue the defendant. This means if you have suffered more extreme damages than other people in the class action lawsuit, you may end up sharing a small settlement with other people who have suffered minor damages and be unable to pursue further compensation in the future.
How much money can you receive from a class action lawsuit?
Consumers who have been harmed by defective products or medications, invasions of privacy or economic injuries due to securities fraud, predatory or illegal employment practices, or corporate misconduct may be able to recover compensation and pursue justice through a class action lawsuit. While some class action cases result in small payouts or no payouts for plaintiffs, there have been many class action lawsuits that have awarded hundreds or thousands of dollars to each class member.
Additionally, the Federal Trade Commission (FTC) monitors unfair and deceptive business practices. Plaintiffs who have filed a class action lawsuit against an employer or company regarding their business practices may also be able to lodge a complaint with the FTC. The FTC may be able to recover refunds for consumers who purchased defective products.
What happens if you win a class action lawsuit?
Many class action lawsuits never go to trial. Once a case has been certified as a class action lawsuit and may involve tens or thousands of consumers, many companies find the stakes to be too high to allow the case to continue to trial and would rather settle out of court.
If a settlement agreement is reached, the compensation will be divided up between the legal fees and the plaintiffs. Generally, the named or lead plaintiff in a suit may be entitled to an extra portion of the funds, due to the additional time and energy put in by them. The remaining funds will be divided among the class of plaintiffs. In many cases, it may take a while for class members to receive a payout, due to the time needed to assess all of the plaintiffs’ claims and process the associated paperwork.
Connecting with an experienced attorney to review your case and determine whether you qualify to file or join a class action lawsuit may be the first step towards recovering compensation for damages or injuries you have suffered.
26 thoughts onHow Do Class Action Lawsuits Work?
Yes I would like to follow class action cases.
I had a Samsung phone with a insurance attached for lost and stolen phone. It was stolen in venice last week. I tried to file a claim but was specifically told that phones stolen out of the united states are not covered. I canceled my insurance so as to not be paying for an unusable policy and now have been told they would have covered but not now because I cancelled my policy even though their records show I reported it before it was cancelled. I see many other complaints about Samsung;s care+ insurancce.
I have 2 videos actually more showing my 2017 Lincoln MKX Black Label blowing out excessive amount of smoke. First video was taken April 29th of this year when right after that I took the car to local Lincoln dealership for my concern. Showed video to service person and they took the car to check it out. Later I was told there was nothing wrong with the car and charged me $192.00 for diagnostic check. Was told to check coolant level occasionally. upon returning home I marked coolant reservior with black permnament marker. No change was noted by me at all up to the present time. I have a current video of the car doing the same thing, in fact I could have taken a video every day from the Apri; 29 to the present showing the same thing. We recently had a oil change and had only driven around 200 miles when had to take car in for check engine light turned out to be bad purge value a $300+ cost that extended warranty does not cover of course. At this repair we were told that service person had to add a quart of oil. Wow after only 200 miles of driving after a oil change. Thats when I recently made another appointment with same Lincoln dealership. Turns out this time my viideo and persistance resulted in finding a major problem. The major problem is what Ford already knew TECHNICAL SERVICE BULLETIN 19-2243. We were informed this is a major repair $13,000+. Now extended warranty company is telling us they will only cover cost to put a low mileage new engine in car around $7,500 plus or minus and we must make up difference if we want the repair told to us by dealership service. Ford is very knowledgeable that this will happen at least 3 service bulletins.