Everything You Should Know About Class Action Lawsuits
Class action lawsuits against major corporations and other large entities frequently make headlines. From a defective piece of machinery to the use of harmful pesticides, many consumers have challenged companies after suffering from injuries and illnesses. These lawsuits provide compensation to claimants to cover medical expenses, lost wages, and more.
There are a few crucial facts that you need to know before filing or participating in a class action lawsuit.
- What Does a Class Action Lawsuit Mean?
A class action lawsuit occurs when a group of individuals collectively sues another entity, such as a corporation, a shop, or even another person. Filing a lawsuit as a single group, rather than separately, helps the plaintiffs gain traction and cut down on individual legal costs.
- Know the Requirements for Filing
To file a class action lawsuit, the group will need to first need to file a class action complaint. Your lawyer will write the complaint, explaining the events and circumstances that surround the complaint. A judge will then review it and determine if it meets the requirements to be considered a class action lawsuit.
- Numbers Count
With a class action lawsuit, a small group of plaintiffs sue on behalf a larger group. The more people you have on your side, the higher the potential payout might be – so search for others in the same position.
- Explore Open Class Action Lawsuits
A large number of affected individuals is one of the requirements to file a class action lawsuit, so many plaintiffs and lawyers seek out others who have experienced the same issues with the same party. Websites such as consumer-action.org provide a database of open class action lawsuits that other consumers can join. If you don’t want to file a lawsuit yourself, you can see if others are filing the same case.
- Know Your Incentives
If you are a lead plaintiff on a class action lawsuit, you may receive an incentive award from the court for filing. If you are hesitant to file, know that this incentive option may be available to you.
- Accept Your Settlement
Always accept your settlement following a lawsuit, even if you think the amount is too small. If not, the money may go to another class member. You can always donate the money to charity if you don’t want to keep it.
- Don’t Expect too Much
Not all class action settlements are worth millions of dollars. When split between a large group of class members, the payout may only be a few hundred dollars. Don’t expect a large amount of money.
- Know Your Options and Their Implications
If you choose to participate in a class action lawsuit, you lose your right to file an individual lawsuit. If you believe that your injuries are greater than the other class members or you might have special circumstances, talk to a seasoned class action attorney. A personal injury lawsuit may be the best option for you.
- Respond Quickly
Attorneys and corporations may give potential class members a tight deadline in which to respond and participate. Always respond quickly to requests for participation and other correspondence regarding your class action lawsuit.
- Be Truthful
When filing a class action lawsuit, always be truthful about your injuries. Many companies suffer because of false allegations made against them. For example, the drink manufacturer La Croix’s stock dropped by 9% after a class action lawsuit alleged that they used cockroach insecticide in their drinks. The allegations were false.