Who Pays the Attorneys in a Class Action Lawsuit?
Many people are unaware that attorneys in a class action lawsuit typically don’t get paid unless they win the case, either at trial or through a settlement. They are generally paid a percentage of the money that’s recovered on behalf of the Class Members. This money is referred to as “attorneys’ fees.”
Attorneys’ fees must be reviewed and approved by the court. The judge will take a look at how much work the lawyers have put into the case, the total value of the judgment and the amount of money that it is reasonable for Class Members to recover. Although each case is different, a court will generally approve attorneys’ fees that are about 25 to 35 percent of the settlement fund.
What if the Settlement or Judgment Doesn’t Offer Compensation to Class Members?
Some settlements and judgments don’t provide monetary awards to Class Members, even if they favor the Class. In the majority of cases that go in the plaintiffs’ favor, the defendant will be required to pay the plaintiffs’ attorneys’ fees. In other cases, the plaintiffs may be required to pay their own legal fees. If you are thinking of filing a class action lawsuit, make sure you find out how your attorney will be paid.
What if the Court Rejects the Proposed Attorneys’ Fees?
There are several reasons that may lead a judge to reject fees that are proposed by class action attorneys. The biggest reason attorneys’ fees might be rejected is because a judge has determined the proposed settlement to be unfair in some way. It may be that the requested attorneys’ fees don’t adequately represent the work the plaintiffs’ lawyers put into the case, or that the fees are disproportionate to the benefits offered to the Class Members. The judge will usually inform the parties about his or her concerns and instruct them to revise the terms of the class action settlement accordingly.
What if I Don’t Like the Proposed Attorneys’ Fees?
If you are a Class Member in a settlement and you have concerns about the proposed attorneys’ fees, you can file an objection to the settlement. You’ll find instructions about the process of filing an objection on the settlement website and/or the class action settlement notice. Make sure you follow the directions carefully and file the necessary paperwork by the deadline.
Do You Want to Start a Class Action Lawsuit?
Top Class Actions offers consumers an easy way to find out how to start a class action lawsuit. Simply enter some information about your legal issue using our Start a Class Action feature and it will be submitted to our network of attorneys for review. If you have a case, an attorney will contact you to schedule a consultation and help you figure out the next step to take. There’s no obligation and, best of all, it’s free.
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