Class action lawsuits allow multiple people who were injured in the same way to band together to seek compensation from the same party that injured all of them. When numerous people are involved, it may be impracticable to file individual lawsuits. By filing a class action case, the whole group, called the “class,” can collectively pursue compensation against the defendant and split legal costs.
However, not every member of the class stands to receive the same amount of compensation in a class action lawsuit because each individual may have been affected in different ways. If the case settles, the court reviews the settlement agreement for fairness. An experienced class action lawyer can review your situation and give you legal advice about whether it is worth it for you to be involved and if you might be a class member who stands to receive a larger portion of the payout.
Differences Between the Lead Plaintiff and Class Members
Someone must still file a lawsuit when a class action matter is involved. Typically, this is called the lead or representative plaintiff. There can be multiple lead plaintiffs, depending on the circumstances.
The lead plaintiff assumes the role of a class representative throughout the case. They are the public face of the case. If the case goes to trial, they will likely testify about their injuries and represent many of the other plaintiffs who were similarly harmed. This avoids having to have dozens of witnesses testify about the same harms they sustained as a result of the defendant’s conduct.
Lead plaintiffs have many responsibilities throughout the legal process, including the following:
- Seek legal representation
- File the initial lawsuit
- Work with legal counsel throughout the case
- Discuss various legal strategies and their viability
- Provide feedback and input based on the needs of the class members
- Participate in the discovery process
- Accept or refuse a settlement offer
Because lead plaintiffs assume this larger role in the case, they are typically entitled to a larger share of any settlement proceeds or court awards. However, lead plaintiffs also represent the collective interests of the class, so they must act in the class’s best interests. The potential compensation a lead plaintiff receives depends on various factors, such as:
- The type of case
- The terms of the class agreement
- The court where the case is tried
- The lead plaintiff’s level of involvement in the case
- The types of injuries the class members suffered
- The total amount of financial compensation awarded to the class
Regular class members stand to receive less compensation than the lead plaintiffs. These members may be further divided into groups where compensation varies based on the types of injuries they suffered. For example, in a mass tort case, the class may be divided into the following groups:
- Level 1: Family members of those who died from the injuries
- Level 2: Injured victims who sustained catastrophic injuries
- Level 3: Injured victims who sustained less serious injuries
The first group might receive a higher percentage of the overall proceeds than the next group, which in turn receives more than the following group.
Settling a Class Action Case and the Allocation of Damages
The defendant may decide to settle the case to avoid potentially having to pay a larger amount of compensation after a trial, to avoid the expense and hassles of a trial, or to prevent bad publicity from damaging their business. Class action settlements require court approval in California.
Any party to a settlement agreement can serve and file a written notice of a motion for preliminary approval of the agreement. The party attached the proposed settlement, notice to class members, and proposed order. Any agreement regarding the payment of attorney’s fees must also be set forth.
The court holds a preliminary settlement hearing to approve or deny certification of a provisional settlement class. It then schedules a final approval hearing. All class members are entitled to notice of the hearing, which includes an explanation of the proposed settlement and the procedures for a class member to follow to object to the settlement. If the court denies the objections, the case moves to a final hearing.
The court considers the fairness of the proposed settlement at the final approval hearing. If the court approves it, it makes and enters a judgment. The case is then dismissed.
These complex legal procedures occur to ensure fairness to the class members. A court’s approval adds an extra layer of security for class members, as a judge will personally review the terms and approve a settlement only if it seems fair to all parties involved.
Distribution of Monetary Awards
The settlement funds are doled out in accordance with the terms of the settlement agreement. Most often, settlements will be paid as a lump sum. Once the attorney receives the settlement, they deduct their fees and are reimbursed for their out-of-pocket expenses. They pay the lead plaintiffs their share. The remaining class members then receive the remainder of the funds, based on their participation and individual claims.
How Much Money Will I Receive in a Class Action Lawsuit
Lead plaintiffs stand to receive a larger portion of the proceeds than regular class members. The payout for class members depends on various factors, including:
- Their injuries
- Their damages
- The total amount of the award
- The number of lead plaintiffs and their share
- The total number of class members
- The costs of litigation
- The strength of the evidence proving their claims
Keep in mind that the settlement money from the lawsuit may not be divided equally among class members. You may receive a larger or smaller payment based on your individual circumstances.
Attorney Fees and Legal Expenses
Class action lawsuits often involve complex legal matters and high-profile defendants. Attorneys who work on these cases are entitled to fair payment for their services.
Many attorneys take class action cases on a contingency-fee basis, meaning that there is no guarantee that they will be paid for their services. Their payment is based on a percentage of the money they recover in the case. If they don’t recover any money, they don’t get paid for their legal services.
However, if they do win the case, they are entitled to the percentage of the proceeds outlined in the case. Additionally, they are also reimbursed for legal expenses and costs they paid during litigation, such as:
- Medical record request fees
- Postage fees
- Phone calls
- Copying fees
- Discovery costs
- Deposition fees
- Expert witness fees
- Court filing fees
Contact Our Experienced Class Action Lawyers for a Free Consultation
Class action cases are often long and challenging. You need an experienced attorney on your side who won’t back down when things get tough. If you take your case all the way, you could be paid considerable compensation, depending on the specifics of your case and injuries.
An experienced class action attorney from Belal Hamideh can review your circumstances and explain the class action process during a free consultation. Contact us today to get started.