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Class Action Lawsuits: How They Work and Whether to Join

Photo: Tingey Injury Law Firm / Unsplash

A class action lets a small group of people sue on behalf of many others harmed in a similar way. It can make small claims economical to pursue.

How it starts

One or more representative plaintiffs file a case and ask the court to certify a class. The court decides whether the claims are common enough and the class large enough. If certified, class members are notified.

What you may receive

  • A notice describing the case and your options.
  • A claim form to receive part of a settlement.
  • A payment that is often modest per person.
  • Sometimes coupons or services instead of cash.

Your choices

  1. Do nothing and remain in the class, which usually means you may receive a payment and give up your right to sue separately.
  2. File a claim by the deadline if one is required.
  3. Opt out to keep the right to sue on your own.
  4. Object to the settlement if you think it is unfair.

Watch for scams

Real notices come from the court or a court-approved administrator. Be cautious of anyone who demands payment to participate. You never pay to join a class action settlement.

Frequently asked questions

Do I need a lawyer to join?

No. Class counsel represents the class.

Why do lawyers get paid first?

Courts approve attorney fees from the settlement, and large awards can reduce the amount per person.

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