What is a class action settlement?

A class action settlement is a resolution to a class action lawsuit. In a class action suit, a group of individuals, who are usually called the class members, join together to sue a person, business, or government agency. This type of lawsuit is often used when the class members cannot afford to take individual legal action. In California, class action settlements are handled by the court system, which requires that all class members are properly notified of the case and all potential benefits of the settlement. In most instances, the class action settlement is adjudicated by a judge who reviews the case and then determines the details of the settlement, such as the amount of money that all class members are due, how it will be paid, and other terms and conditions. In some cases, the settlement may be accepted by the entire class, or in other cases, class members can opt out of the settlement and choose to pursue individual legal action. Once the settlement is accepted, the outlined terms are legally binding. This means that all class members must abide by the terms, and the settling party is responsible for fulfilling their obligations as laid out in the settlement. Class action settlements allow for the dispute to be resolved without having to go through a lengthy and expensive court trial.

Related FAQs

What is the role of the court appointed class counsel?
What is the difference between a plaintiff class and a defendant class?
What is the effect of class action damages on individual class members?
What is a reverse class action lawsuit?
What is a cy pres award in a class action settlement?
How is a class action lawsuit certified?
Can a class action be appealed?
What type of fees are associated with a class action lawsuit?
What is the class action fairness act?
What rights do class members have in a class action lawsuit?

What is a class action settlement?

Related FAQs

Related Blog Posts