There is a good chance that most people out there have heard of class action lawsuits. We have seen commercials, received items in the mail, or heard about them through news stories online. But what even is a class action lawsuit?
A class-action suit is filed when a larger group of victims take on a single party believed to have caused the injuries, financial loss, and more. These plaintiffs are grouped into a single class, making litigation far more straightforward than if each person were filing an individual case.
If you have wondered why people join class-action lawsuits, here are seven reasons.
Litigation on your own can wind up being quite costly. Unfortunately, even if someone has a legitimate claim, they may not have the necessary funds to continue the battle. But with a class-action suit, court costs are reduced exponentially.
Legal fees may be only a few dollars depending on how many people are pooled within the suit. Nevertheless, it is a more effective way of pursuing a claim that may not have otherwise been possible.
Recover Small Claims
Sometimes, it doesn’t make sense to file an individual claim. The legal fees alone could offset a minimal financial gain that a positive outcome would have had. But that all changes with class action suits.
Winning a class action suit can mean recovering even small claims where it may not have been otherwise possible because of the minimal legal costs.
Everyone Gets Part of the Payout
When there is a payout issued in a class-action lawsuit, the good news is that each class member gets part of the payout settlement or award. It may not be as substantial as it could have been in an individual case, but it is still something.
Many legal battles end with a plaintiff going bankrupt before any meaningful action can be taken. But, unfortunately, that doesn’t happen with class action suits.
Potentially Faster Settlement or Award
Since the judge hears a single class-action suit, they can be resolved much more efficiently and quickly than if all cases were heard individually. But, again, this is because there is one decision or settlement involved.
That drastically speeds up the process of working through a case. On the other hand, filing individually could mean years before your case is heard, depending on how early you filed your claim.
Improved Judicial Efficiency
The natural beauty of a class-action lawsuit is that it reduces the amount of time that the plaintiffs spend in the legal process. In addition, a class-action case usually means that one decision is rendered through a single judge.
Other cases can involve multiple court dates and judges, stretching the process out to take months or even years to complete.
More Consistent Recoveries
Since there is only one decision being rendered by one judge, then the recoveries for the plaintiffs should be far more consistent. That means an even judgment amount with no one party getting greater or less compensation.
That can potentially mitigate any conflict that arises from the settlement process. However, more minor cases with multiple plaintiffs can lead to disagreements over possible payout amounts and timelines, further complicating the manner.
Uniformity for Defendants
For defendants, the process becomes infinitely simpler as well. Instead of facing several individuals separately, with different judgments and requirements, there is one judge, one settlement, and one ruling.
For defendants, it can mean total certainty about how to proceed. There is no need to wonder how to properly follow the law when only one judgment or decision was issued. A class-action lawsuit aims to combine shared issues from plaintiffs and make the entire process simpler and easier to navigate for both plaintiffs and defendants.