If you’ve bought a car, consumer electronics, telecommunication services, prescription medications or any of a number of other products, you may have been notified that you are part of a class action lawsuit.
The concept behind a class action lawsuit is straightforward: Traditional lawsuits involve one party suing another to settle a dispute or address a wrong between the two of them. If you’re not a party, your rights won’t be affected. In a class action, an individual can sue a business, organization or institution over a wrong, not just on behalf of himself or herself, but others who were wronged as well.
As part of the class action process, a class of plaintiffs who have or may have been wronged by the defendant are certified https://www.classaction.org/learn/how-lawsuits-work#certify-the-class and then notified they are part of the class.
It’s important to note class actions are “opt-out” suits, meaning once you have been notified as being part of the class, you are automatically included in the suit unless you choose to decline to participate.
Large Numbers Get Results
Class action suits are an effective way of addressing unfair business practices since they may involve dozens, hundreds or thousands of plaintiffs.
In the event that the class action suit is successful – either by a verdict or a settlement – the total damages awarded to a large number of plaintiffs will be significantly greater than those awarded to a single plaintiff.
With damages multiplied by potentially thousands of plaintiffs, the defendant will be much more likely to address the issue which caused the suit than had they paid damages to a single plaintiff.
Reduced Costs for Individual Plaintiffs
It’s no secret that litigation can be extremely expensive. The expense of an individual’s suit against a large company may be many times greater than the damages incurred by that individual.
In addition, large companies may have vast resources – time, financial and legal – readily available to fight an individual in court.
For an individual who is considering suing a large telecommunications company for example, investing thousands of dollars and countless hours of time in a legal battle will in most cases far outweigh the damages incurred by the lone plaintiff.
However, spreading those costs over a class of hundreds or thousands of plaintiffs in the end greatly reduces the costs to the individual plaintiff. And typically, legal fees come out of the settlement or award at the resolution of the class action suit with lawyers being paid only if the suit is successful.
Fewer Headaches for Individual Plaintiffs
Once a class has been certified, potential members of the class are given notice and then have the opportunity to opt out. If an individual does nothing he or she is part of the class.
As the suit progresses, class members generally aren’t called upon to testify or even be in court (though the lead plaintiff or plaintiffs may), and they pay no legal fees since class action attorneys are generally paid a percentage of the award won or settled in the suit.
For most members, involvement for individual plaintiffs is reduced to not opting-out of the class, awaiting the verdict or settlement and then receiving the compensation.
Class Actions May Not be for Everyone
Of course, participating in a class action suit is not a perfect fit for everyone. You may feel you’ve suffered devastating damages and may wish to sue a company or entity well before a class has been certified and a suit has been initiated.
It’s important to remember that even in these cases, the combined resources and power of a class may be far greater than those of an individual plaintiff, and patience often pays off.
Finally, it’s important to understand you have rights and legal protections as a consumer. Initiating a class action suit or being part of a certified class may be your best option for recovering damages.
Speaking with the experienced attorneys of the Law Office of Richard S. Cornfeld, LLC can ensure you have the information you need to make these crucial decisions.
Contact us today for a free consultation or browse our open investigations to see if you qualify for any of our current class action lawsuits.