What Can I Win in a Class Action Lawsuit? (2024)

What you can win in a class action lawsuitdepends on a number of factors. This includes the severity of your injuries, the number of people in the class, and the judge’s decision based on the facts of the class representative case.
In some cases, plaintiffs in a class action case may receive thousands of dollars each. More commonly, though, these awards come in the form of much smaller payouts. We can help you understand what you may expect from a class action lawsuit after we review the specific information of your case and learn more about the other plaintiffs.

What Do I Need to Know About Awards in a Class Action?

The Judge Only Decides on One Case

In a class action lawsuit, the court system treats the entire class of victims like a single plaintiff. This means the judge’s decision on the case applies to the entire group. If the judge sides with the defendant and dismisses the case, no member of the class can pursue further legal action. If the judge rules in favor of the class, the court will determine an award amount that the members of the class will split.
In many cases, the class representativeand their team of attorneys are able to reach a settlement before the case goes before the judge for a decision. Members of the class do not have any decision-making power in this negotiation, although the plaintiff in the class representative case can speak for them.

The Judge Approves a Plan for Distribution

As a class action case concludes, the judge must approve a plan for how the defendant will distribute any payout in the case. This is the award the individual members of the class will receive after the attorneys handling the case deduct their reasonable fees and any court costs.
Usually, each individual plaintiff will receive an equal portion of the award, or a specific dollar figure from a fund. Occasionally, there is a more individualized review of damages that allows attorneys to distribute the compensation based on the damages each plaintiff suffered. This is not common, however.

Every Member of the Class Wins Something

One of the major benefits of participating in a class action is that every member of the class wins something. If each case proceeded individually, there is a good chance the defendant would file for bankruptcy protection or simply run out of money before all possible plaintiffs received the compensation awarded in their case. A class action eliminates this possibility; if the court awards a payout, every member of the class receives a portion.
For example, imagine a drug company failed to adequately warn the users of a medication that it could lead to heart attacks. The class action suit against them cost them millions, and those who used the drug or their surviving family members each received a few thousand dollars.
While this may not cover the entirety of their hospital bills and/or burial costs, it is significantly more than they would receive if each individual tried to file a lawsuit against the drug company. Only a few plaintiffs would receive the bulk of the money available, and the company would likely go bankrupt before all the cases could make it through the court system.

Class Action Does Not Always Lead to the Highest Possible Payout

While class action claims are generally one of the most efficient methods of getting the compensation you deserve, there are also drawbacks. 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.
If you suffered serious injuries or major financial damages, especially if they were greater than many others in a class action suit, you may be better off opting outand not participating in the class. This is also true if you are not yet sure of your full range of losses.
By opting out, you can preserve your right to file an individual case against the defendant at a later date, and request compensation based on your specific damages and the details of your individual situation. We can help you understand if this is a good option when we review your case.

Contact A Class Action Lawsuit Attorney to Learn More

If you believe you may have a class action claim, reach out to the knowledgeable class action lawsuit lawyers at Gacovino, Lake & Associates, P.C. today. We can help you understand your legal options for pursuing compensation, manage all aspects of these complicated cases, and recover the maximum payout possible for you.
Call our office at 631-600-0000 to schedule a free case evaluation.

What Can I Win in a Class Action Lawsuit? (2024)

FAQs

How much money can I expect from a class action lawsuit? ›

Your recovery could be a couple of hundred dollars, tens of thousands, or more or less. By responding to court notices about opting out of a class action claim or notices about objecting to a proposed settlement, you could help secure a larger settlement for yourself and the entire class.

What is the highest payout of a class action lawsuit? ›

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.

What makes a good class action lawsuit? ›

Commonality: There must be major common legal and factual questions shared by all class members. Typicality: The claims of the main class representatives must be typical and aligned with the class.

What is the best way to win a case? ›

Tips for Winning a Court Case
  1. Find the Right Court. Laypeople are often surprised to learn that their local courthouses have many different courts inside. ...
  2. Litigate for the Right Reasons. ...
  3. Mediate Instead of Litigate. ...
  4. Communicate With Your Attorney. ...
  5. Be Willing to Negotiate. ...
  6. Follow Court Procedures. ...
  7. You'll Need a Good Lawyer.
Apr 30, 2024

Does everyone get the same amount of money in a class action lawsuit? ›

Reasons for Smaller Settlements in Class Action Lawsuits

Class action lawsuit settlements are not divided evenly. Some plaintiffs will be awarded a larger percent while others receive smaller settlements. There are legitimate reasons for class members receiving smaller payouts.

Should I cash a check from a class action lawsuit? ›

Generally, if you get one, you probably paid a lot more in wrongful fees than you're getting back in the settlement. If you don't cash the check, the money may go back to the company. Less often, the parties agree in advance to donate unclaimed settlement money to a legal aid society or a charitable organization.

What is the downside of 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.

Is it worth joining a class action lawsuit? ›

And since class action cases may take years, even to obtain a court-approved settlement, “sometimes it's easier to settle an individual case than the entire case,” Feldman says. However, if an eligible member does not plan on filing an independent lawsuit, there's no obvious downside to being a member, he says.

How many people are usually in a class action lawsuit? ›

Some class sizes can reach millions. While there is no exact number needed for a class action lawsuit, it is difficult to form a class to receive certification with less than 20 members. A class with at least a few dozen members is preferred and will likely be certified and move forward.

How do you win 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 benefits most from class action lawsuit? ›

If a defendant is facing multiple lawsuits then the defendant may not have the ability to pay all of the plaintiffs. That means that earlier filing plaintiffs generally receive greater compensation for similar injuries than do later filing plaintiffs.

Are class action settlements taxable? ›

The general rule regarding taxability of amounts received from settlement of lawsuits and other legal remedies is Internal Revenue Code (IRC) Section 61. This section states all income is taxable from whatever source derived, unless exempted by another section of the code.

What are the hardest cases to win? ›

What Are the Most Difficult Charges to Defend?
  • Crimes Against Minors. It can be challenging to defend clients who have been accused of crimes against minors. ...
  • Murder, First Degree. The most severe criminal charge that anybody may face is first-degree murder. ...
  • White Collar Crimes.

Which burden of proof makes it easier to win a case? ›

Clear and convincing evidence is at a higher level than the preponderance of the evidence standard, and it involves proving that there is a high probability that the allegation occurred.

Why are federal cases hard to win? ›

Cases that end up in federal court usually result in higher sentences than they would in state court because of federal mandatory minimum and maximum sentencing laws, as well as the federal sentencing guidelines.

How much does a lead plaintiff get in a class action lawsuit? ›

A lead plaintiff's award in a class-action lawsuit isn't universal or fixed. Instead, a lead plaintiff's compensation depends on several factors, including the specific case details, the class size, and the court presiding over the case.

Can I benefit from a class action lawsuit? ›

Depending on the case's judgment, the plaintiffs may receive awards for financial compensation. While class action lawsuits may include many plaintiffs, that does not stop each member from receiving damages.

Are class action lawsuit settlements taxable? ›

According to the Internal Revenue Service, settlement funds must be included in federal income for tax filing purposes unless they are specifically exempted by the tax code. The good news is that any damages you receive based on physical injuries are exempted and don't have to be included as taxable income.

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