Class Actions 101: What is a class action and how do consumers benefit?

Many consumers often have the same question: What is a class action?

A class action lawsuit is a valuable tool for helping consumers earn compensation for damages incurred — whether due to purposeful or negligent acts — from a number of different sources and for a variety of reasons. 

Class action lawsuits commonly target an employer, business or other entity that has wronged or harmed a consumer, worker or any individual in some way. 

A class action lawsuit differs from a lawsuit in that it allows a court to hear a complaint on behalf of potentially millions of individuals at once, saving time for both consumers and the court. 

Class action lawsuits are also almost always civil complaints rather than criminal and can either be led by either a group or a lone lead plaintiff on behalf of a group of eligible class members. 

Similar to a class action lawsuit, a mass tort, which is when a large number of individuals file a lawsuit against a corporate defendant due to injuries or even death caused by alleged negligence. 

What is a lawsuit investigation? 

A lawsuit investigation, meanwhile, is used to necessitate a class action lawsuit and involves an attorney(s) finding potential plaintiffs and class members and determining if damages have been incurred.

Consumers who want to be involved in lawsuit investigation can do so by either contacting an attorney or filling out a form on Top Class Actions directly. 

Open investigations that are available to potentially join at no cost, although continued cooperation with an attorney is required, can be found on the Top Class Actions Investigations page. 

It is important to pay attention to several qualities when looking for an attorney to represent you in a potential class action lawsuit, including being sure to find someone that has the specific experience and skill set for the type of claim you are looking to make. 

How do I start or join a class action? 

When starting a class action lawsuit, which almost anyone who has been financially or physically harmed by a company can do, one should first begin by gathering together all potentially useful documents that can be used to further a potential complaint. 

Documents that can help strengthen a potential class action lawsuit complaint include emails, call records, complaints or applicable contracts and agreements or relevant terms of service. 

It is also important to file the class action lawsuit against the legal name of the business entity, something which is not always straightforward and can require some digging to find. 

While a class action lawsuit only needs one or a small group of lead plaintiffs to be filed, an accuser(s) must be able to show that a significant number of individuals were similarly harmed by an alleged action and will be closely affected by the outcome. 

What is a class action settlement? 

Another question consumers often ask is, “what is a class action settlement?” A class action settlement is when both sides come to an agreement, which typically includes monetary compensation, to settle the claims and avoid further litigation. 

The class action settlement agreement is then handed off to a settlement administrator who is tasked with distributing the notice of the settlement to class members, paying out the awards and reviewing any claim forms submitted. 

In some cases, an individual will be included in a class action settlement without having to either file a claim to join or have been involved in the making of the complaint. 

To avoid being part of a class action settlement, an individual can choose to opt to be excluded from the agreement so as not be legally bound by it. 

How can I benefit from a settlement? 

Individuals who benefit from a class action settlement are called class members and can be either an entity of singular consumer who has been directly affected or harmed by allegations made against a class action lawsuit defendant. 

Consumers who want to join a class action settlement often must submit a valid claim form, which may be sent directly by either email or physical mail, before a set deadline. 

Top Class Actions also has a settlement page that can be a helpful resource for consumers who are looking to find and join a class action settlement. 

In the case of a class action settlement revolving around a product or service, while having a proof of purchase is not always required to qualify, it can sometimes be necessary to earn more compensation. 

It is always, therefore, advisable for a consumer to keep track of and hold onto any proof of purchase, including physical and emailed receipts, credit card statements, vehicle records and service records, among other things, for all transactions made. 

Have you had questions on what is a class action or what is a class action settlement? Let us know in the comments! 

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