How Are Class Action Settlements Distributed?

“Samsung Top-Load Washing Machine Class Action Settlement”

“Facebook Fights Multibillion-Dollar Privacy Class Action”

“Apple Hit With Two Class Action Lawsuits Over iPhone 7 Audio Issues”…

While such headlines go viral on the internet, most of us don’t read or click on them unless our consumer rights are violated too. Even though hundreds, thousands and even millions of consumers purchase defective products that cause them serious injuries, many of them don’t know that people with the same or similar injuries caused by the same product or action can file a class action lawsuit as a group and get compensation! That’s why I want to share with you some facts about class action lawsuits, and the way the class action settlements are distributed!

It’s time to know your rights!

Know Your Rights to Benefit From a Class Action Lawsuit

Fact # 1

A person or a few people (called lead plaintiffs) file a class action lawsuit on behalf of a larger group of people with similar claims. These cases may involve people who are the victims of race discrimination in the workplace, consumers who purchased defective products like vehicles that keep on breaking down, patients who had used drugs that caused serious side effects, etc.

If the lead plaintiff is able to prove that all class members have similar claims, the judge certifies the class.

Fact #2

What would happen if all consumers harmed in a similar way decided to file individual claims? Yeah, a total mess! That’s why it’s more efficient to join class action lawsuits! More than this, class members stand stronger together and maximize their chances to win the case.

Fact #3

The court notifies potential members of the class via email, general media such as television, an advertisement, or a posted flyer. However, class members usually have the right to “opt out” of a class action lawsuit and can file a separate lawsuit if they think they have been harmed more than other consumers.

The Way Class Action Settlements Are Distributed

Ta-da! Lastly, here is the answer to one of the most asked questions by class members. So, how is the money distributed between the class members?

Generally, these lawsuits settle before going to court. However, the presiding judge must approve the settlement, making sure it is fair to all parties. If the class wins, the court will develop a plan to distribute the amount between the class members. Attorneys will receive their percentage of the entire recovery. Then, the lead plaintiff(s) receive an amount partly determined by their participation in the lawsuit. Finally, the class members will receive the rest of the settlement amount.

The worst part is that settlements may be worth millions, but your share may not even fully cover damages. However, in a class action, the court’s decision applies to every participant who has opted into the class. So if the class wins, each participant will receive some payment.

Get Help from Experienced Class Action Lawsuit Lawyers!

If anyone has violated your consumer rights, and you believe there are others like you, without a doubt you will think of starting/joining a class action lawsuit! First things first, you will need to find professional attorneys who have the experience handling such cases, right? So, call (818) 553-1000 right now for a free consultation with our talented attorneys at Margarian Law Firm and get the help you need!

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