What Happens if You Miss a Class Action Lawsuit | Ankin Law (2024)

If the motion to become a class action is approved, you and other individuals who have been harmed will be given notice and the opportunity to join aclass action. If you miss a class action lawsuit, you can pursue legal action through a personal injury lawyer.

What Happens if You Miss a Class Action Lawsuit | Ankin Law (1)

How Do Class Action Lawsuits Work?

Generally, a class actionis started by a lawsuit from one person or a small group of people who are injured similarly. When it becomes clear that many people have suffered similar harm, a lawyer will start the process that begins a class action lawsuit on behalf of all the injury victims.

To start the class action process, a class action lawyer will ask the court to recognize similar harm by certifying a class action. If the court approves the motion to become a class action, all harmed individuals included in the class will be given notice and the opportunity to join the class action lawsuit. The main components of a class action lawsuit include the following:

  1. The Complaint

The legal document that begins a class action lawsuit is known as the complaint. The complaint is filed in court by a class action lawyer and describes all the facts of the case and injuries.

  1. The Class

The individuals represented in the class action lawsuit are known as the class. The class, or group represented in the lawsuit,must attest that they were affected by the defendant’s actions, but only the lead plaintiff will try the case in court.

  1. The Lead Plaintiff

The individual filing the class action lawsuit is known as the lead plaintiff or the class representative throughout the legal process. The lead plaintiff’s job is working with the lawyer on behalf of all class members as well as answering questions, and giving a deposition.

  1. The Class Action Notice

Class members usually receive a notice by mail or email if the class action lawsuit settles. The notice contains information about the lawsuit and how each class member can claim his or her portion of the settlement award.

5. Opting Out

Individuals are allowed to opt-out of any class action lawsuit if they don’t want to participate. There is an opt-out option on the notice that can be checked. Individuals who choose to opt out will not receive any compensation if the lawsuit settles.

How Many People Are Required to Start a Class Action?

There is no official number on how many people are needed or required for a class action lawsuit. Depending on the circ*mstances of the lawsuit and the number of injury victims, class action lawsuits can involve thousands or even millions of injured individuals as long as there is a definite pattern of evidence to support the class action. However, it’s unlikely that the judge who approves the class certification will approve cases with less than 20 to 30 individuals. The more people the better, because class action lawsuits can be complex and take a long time to resolve, especially if a court ruling is appealed.

Since every class action is different, it’s often difficult for class members to know what to expect in a class action lawsuit. While some cases are resolved in a matter of months, others may take several years. Generally, most class actions take between two and three years to resolve. The most successful class actions usually have the largest number of class members. These cases give lawsuits merit and establish validity in court. Cases with thousands or hundreds of thousands of class members who have been injured by a defective or unsafe consumer product can force the responsible defendant to settle before the case even gets to court.

What Happens if You Miss a Class Action Lawsuit?

When a class action settles, most class members will receive a letter by mail or an email that informs them of the class action settlement and gives them instructions on how to claim their part of the settlement award. As part of the class action lawsuit process, the defendant may be ordered to hand over contact information for all known class members. In cases where the identity of the class members is unknown, a notice of the class action settlement may be posted in newspapers, magazines, or other publications likely to be read by class members.

Typically, after a class action settles, a settlement website is launched and the website address is included in the settlement notice. In most cases, class members are required to complete a claims form to receive their portion of the settlement proceeds. In some cases, class members may receive their portion of the settlement proceeds automatically without submitting a claims form. In such cases, class members will usually get a letter or an e-mail stating that they will be receiving compensation or an account credit as part of the settlement.

What if You Miss a Class Action Lawsuit?

If a class action settles and any of the settlement proceeds are not claimed by the settlement deadline, the money may be distributed among the remaining class members, given away to a charitable organization, or returned to the defendant. If you miss a class action lawsuit or do not claim your portion of the settlement award by the deadline, you can talk to a lawyer about how to file a class action lawsuit as an individual or other options you may have to collect damages.

What Is a Class Action Fund?

In class actions, a common fund is the amount of money that has been set aside to pay class members in a successful class action lawsuit. If you miss the class action lawsuit, or you don’t find out about the lawsuit until after a verdict or settlement is reached, the common fund provides a way for you to join the case and receive payment for your portion of the monetary award.

What Happens if You Miss a Class Action Lawsuit | Ankin Law (2024)

FAQs

What Happens if You Miss a Class Action Lawsuit | Ankin Law? ›

If the motion to become a class action is approved, you and other individuals who have been harmed will be given notice and the opportunity to join a class action. If you miss a class action lawsuit, you can pursue legal action through a personal injury lawyer.

What happens if I do nothing in a class action lawsuit? ›

You usually have the right to “opt out” of class actions or proposed settlements in California. The opt-out procedure will be explained in the legal notice sent by the court. By opting out, you retain the right to file an individual lawsuit. If you do nothing, you will be bound by any settlement or verdict.

Can you ignore a class action lawsuit? ›

You can choose to “opt-out” of the class, hire your own legal counsel, and file a separate lawsuit. You can decide to opt-out of the class action and do nothing.

What are the consequences of a class action lawsuit? ›

Financially, a class action lawsuit can be a huge burden. Not only is there the loss of business that is likely to occur but also fighting the legal battle can be expensive. If there is a judgment against your company or a settlement in the case, it also is typically quite costly.

What are the consequences of losing a lawsuit? ›

If you are being sued, you are the defendant. Losing your case may mean having to pay for the injuries and damage you caused. The court can impose a money judgment. If you were reckless or acted intentionally, you may be subject to additional costs as punishment for your dangerous behavior.

What happens if you miss a class action lawsuit? ›

If the motion to become a class action is approved, you and other individuals who have been harmed will be given notice and the opportunity to join a class action. If you miss a class action lawsuit, you can pursue legal action through a personal injury lawyer.

Is it worth filing a class action lawsuit? ›

Is It Worth It to Join a Class Action Lawsuit? This depends on the facts of your individual case. You might benefit from becoming a lead plaintiff in a highly important case that causes policy changes in the future. Or, you might end up as one of many plaintiffs, contributing to the greater uniformity of the claim.

Is there a downside to joining a class action lawsuit? ›

Considering joining a class action lawsuit? While it can empower you in seeking justice, be aware of potential drawbacks like legal uncertainties, loss of personal control, lower individual compensation, and the often lengthy legal proceedings.

Can you remove yourself from a class action lawsuit? ›

Individual plaintiffs who don't want to be bound by a court's decision in a class action lawsuit may want to consider opting out of the suit completely, which means that they will retain the right to bring a separate, individual lawsuit against the defendants and seek an amount in damages that they deem fair.

How do you beat a class action lawsuit? ›

A Checklist for Defending Class Actions: 20 Best-Practice Tips
  1. Get the facts—all of them. ...
  2. Grasp the legal issues. ...
  3. Know the players. ...
  4. Hire experts. ...
  5. Ensure that outside counsel understand the business. ...
  6. Develop a litigation plan with the end in mind. ...
  7. Define what “victory” means. ...
  8. Get a handle on the damages.

Who usually wins in a class action lawsuit? ›

Contrary to popular belief, class action settlements are not divided among class members evenly. Lead plaintiffs receive the most money in class action lawsuits. They typically have the worst injuries and the highest damages.

What percentage of class action lawsuits are successful? ›

“With a certification conversion success rate of nearly 77% for the plaintiff's bar and a tsunami of privacy claims coming down the track for 2023, companies need to redouble their compliance and risk mitigation efforts to address class action litigation risks and take the necessary planning, preparation and decision- ...

What is the difference between a lawsuit and a class action? ›

Description. In a typical class action, a plaintiff sues a defendant or a number of defendants on behalf of a group, or class, of absent parties. This differs from a traditional lawsuit, where one party sues another party, and all of the parties are present in court.

Does losing a lawsuit affect your credit? ›

Historically, among those negative items that used to show upon your report were judgments, which are legal documents indicating the results of a lawsuit. However, according to the Consumer Financial Protection Bureau, judgments no longer appear on your credit report as of 2017.

What happens if you avoid a lawsuit? ›

Essentially, if you choose to ignore a lawsuit, the courts see this as you admitting that the accusations made by the plaintiff are true or justified. You will lose any right to answer later, as well as the right to appeal the judgment.

What is the biggest lawsuit loss? ›

Tobacco Settlement at $206 Billion

The largest-ever class action settlement was agreed upon in 1998 by Philip Morris, RJ Reynolds, and two other tobacco companies. Paid out annually over 25 years, the settlement covered the medical costs for smoking-related injuries for individuals in 46 US states.

Is there a downside to joining class action lawsuit? ›

Considering joining a class action lawsuit? While it can empower you in seeking justice, be aware of potential drawbacks like legal uncertainties, loss of personal control, lower individual compensation, and the often lengthy legal proceedings.

Is it hard to win a class action lawsuit? ›

It can be incredibly difficult to win all the compensation you need to cover your full range of damages, especially in a case where there are thousands or even millions of members of the class.

What happens if someone doesn't answer a lawsuit? ›

Or, if you don't respond to the lawsuit, the judge can make a final decision (a judgment), likely against you, without a trial or our participation.

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