HOW DO CLASS ACTION LAWSUITS WORK?
HOW DO CLASS ACTION LAWSUITS WORK?
Class action lawsuits are governed by Federal Rule of Civil Procedure 23 and 28 U.S.C. §1332(d). If the amount in controversy exceeds $5,000,000 and specific circumstances are met, a federal district court will be awarded original jurisdiction over the civil class action lawsuit.
To file a class action, everyone involved must be notified and provided with one of the following options:
1. Joining the class action lawsuit; or
2. Opting out and finding their own attorney to assist with the matter.
Initially, from the claimant's perspective, it is essential to determine if seeking independent legal counsel would be more successful than joining in a class action claim. In some cases, even though harm was caused, it might not be worth handling this legal issue individually. So, in these cases, it may make sense to participate in a class action lawsuit.
The proceeds of a class action lawsuit are typically divided among the claimants. This is an excellent option for those who wouldn't have a case if they tried to file it on their own. If you have questions about what type of claim is right for you, speak with experienced trial lawyers to decide if your case extends beyond the scope and purpose of a class action lawsuit.
What Must be Proven In a Class Action Lawsuit?
Class action lawsuits are similar to other types of liability matters in that the plaintiffs must show they were harmed or financially damaged by the negligence or misbehavior of the defendant or defendants. Several elements are critical to a successful class action lawsuit.
The plaintiff acting on behalf of the class action group must have the ability to prove:
Their situation is typical of the damages of other class members
They suffered a measurable loss
The type of claim they are filing is the best way to hold the company/product liable
The evidence is similar across all claimants involved
That If the lawsuit is successfully resolved, all claimants will be treated similarly.
How Much Does It Cost to Join a Class Action Lawsuit?
It costs nothing to join a class action lawsuit. The only thing a person needs to consider if they've been notified of their eligibility to join a class action is if they should file their claim individually. Sometimes, a person might not be aware that they have a claim until they receive notification of a pending class action lawsuit.
If their damages exceed the losses of others in the class action, a person might want to consider opting out of a class action to file their own case. This is important to remember because if a person is part of a class action lawsuit, they'll likely be unable to pursue further legal action for the same issue once the case is finished.
How Is Money Divided in a Class Action Lawsuit?
Money is divided after a class action lawsuit according to the terms provided by the settlement or verdict obtained by one. If a class action lawsuit is settled before it reaches court, a court will still have to approve that it is a fair and adequate result.
Generally, the proceeds of a class action are split between:
The lead plaintiffs
Participants
Lawyers who worked on the case
Since they devote more time and effort to a class action, lead plaintiffs are often awarded a verdict or settlement separate from the amount divided among participants.
What Are the Advantages of Joining a Class Action?
Class actions are excellent for people with minor claims to join together and hold a negligent or dishonest party accountable. If you have a small claim, joining a class action means you don't need to worry about lawyer's fees, hiring legal help, or participating in court proceedings.
Class actions also help:
Increase the efficiency of the court system by consolidating many cases as one
Reduce stress on participants
Provide consistent and fair compensation for all members
Hold companies accountable for "small" misdeeds that affect many people
How Much Money Do Lawyers Make from Class Actions?
Attorneys who work on class actions typically do so using something called a contingency fee agreement. This means they cover all legal fees, investigative costs, and any other expense associated with the class action. Importantly, lawyers who work on contingency fees only get paid if they win results.
Contingency fees incentivize lawyers to work for the best results while eliminating the financial burden that a lawsuit would place on plaintiffs.
Because a law firm's earnings from a class action suit depend on results, determining how much one will make from a class action is nearly impossible. Contingency fees are often between 33 and 40 percent of the results of a case.
Notably, a court will always factor in contingency fees to decide if a settlement or verdict will be fair for the plaintiffs.
Should I File or Join a Class Action Lawsuit?
If you think you qualify for a class action lawsuit or have been made aware of one you might be able to join, it's important to speak with an attorney first. Class action lawsuits are an excellent way for people to join and demand justice when they couldn't do so on their own. However, they aren't always the right option for a person who suffered significant damages. Importantly, receiving a settlement from a class action might mean that you'll be unable to pursue further compensation that you're entitled to. Finding out your options is simple, free, and confidential when you call Cohan PLLC.
We're ready to listen to your story right now. Call us to have questions answered about your class action lawsuit at no cost.
