Learn about the risks and rewards of class action lawsuits.
Class action lawsuits often seem to promise a benefit with little to no work on the plaintiff’s part. However, before you decide to participate in a class action lawsuit, it is important to understand what you are agreeing to—and what you may be giving up.
What is a Class Action Lawsuit?
A class action lawsuit is a legal action that enables large groups of people to band together to seek damages that might otherwise be too small to justify individual actions. The focus is often more on holding the defendant responsible for their misconduct rather than on securing significant compensation for the victims.
The typical class action lawsuit meets these 4 requirements:
- A “class” of defendants consisting of at least 20 people
- A legal issue that affects all class members
- Individuals with “typical” claims that can represent all class members
- The entire class can be represented fairly by the attorneys without conflicts of interest
Should You Participate?
If you have been contacted about a class action lawsuit, or seen an advertisement for a lawsuit that seems to apply to your situation, it may seem like an easy way to get some compensation. But, you should not take this “easy” route without serious consideration.
Why?
Because plaintiffs in a class action lawsuit lose their ability to file separate claims.
This means that if you choose to participate in the lawsuit, you will have just one chance to recover the compensation you deserve. If the class action suit is denied, you will be out of options unless the entire class has grounds for appeal.
If you have suffered a serious injury, you are probably better off seeking compensation on your own. This way, you can make sure all of the specific losses you have suffered are considered and will be compensated if you win your case. You do not risk receiving less compensation that you actually need, as could easily happen if you participate in a class action suit but were more seriously injured than the “typical” participant.
Read the Fine Print
In some class action lawsuits, you have to opt in in order to be considered part of the class. But in other cases, you are automatically considered part of the class unless you specifically opt out. So be sure to read the fine print on any materials related to the class action lawsuit carefully so you know what needs to be done to preserve your right to file a separate personal injury claim.
