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What Makes a Class Action Different from an Individual Lawsuit?

Sometimes you are stuck between a choice to file a class action lawsuit or an individual lawsuit. Naturally, when you file an individual lawsuit, you will end up with more money if you win the case. But is it worth it? Do you have to go through the trouble for a $100 damage? There are situations when a class action is a better choice. Read this article if you want to know the difference.

Class Action Lawsuit vs. Individual Lawsuit

In the class action lawsuit, there is a class of plaintiffs who sue a defendant for injuries caused by common actions or inactions. Normally one or more plaintiffs (Lead Plaintiffs) file the lawsuit.

In an individual lawsuit, one plaintiff files a case against a defendant. Thus, all compensation awarded goes to the plaintiff.

You may think that it is better to file an individual lawsuit. But this is not always the case. There are some situations when you’d better be a member of a class rather than take the trouble of filing an individual lawsuit.

Benefits and Drawbacks

Suppose your washing machine damaged your favorite dress. You may be so furious as to file a claim against the manufacturer. This will take your time as well as money to pay the attorneys. So, after crying on your favorite dress, you just give up the idea of suing the company and spend an extra $100 for a replacement dress. Suppose there are 2000 other people like you. You can join in class action and file a claim against the manufacturer. This will cause you less hassle than an individual case.

Moreover, in a class action lawsuit, the defendants risk big money. They would rather settle the case than continue the litigation.

There is another small trick with individual lawsuits. If individuals file multiple claims, those who file earlier will get more money. This is not the case in a class action. All injured parties receive compensation at the same time and in proportion to the damage they incurred.

However, class actions are not without drawbacks. For example, you lack control over the litigation process and settlement. You cannot decide whether you want to settle or continue litigation if you are not the representative of the affected class.

Naturally, you end up with far less money in a class action lawsuit than an individual lawsuit. Sometimes these may be coupons for future services or rebates only.

Finally, if your class action lawsuit is not successful, you do not have the right to bring an individual lawsuit at a later date.

Speak To Class Action Lawsuit Attorney Today

We tried to explain the basic differences of an individual lawsuit and a class action in this article. But life is much more complicated. Sometimes it is hard to decide which way to go. Take the step today and contact the Margarian Law Firm attorneys who are specialized in class action lawsuits. Dial (818) 553-1000 for a FREE consultation. We will discuss your specific situation and guide you through steps.

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