How do class action settlements compare to individual lawsuit settlements?

Class action settlements and individual lawsuit settlements vary in many ways. Generally, class action settlements involve a large number of people who have all suffered a similar loss or harm. All of the claimants are represented by a single individual or group of individuals, called the class representative. Generally, each of the claimants receive a portion of the settlement proceeds, typically determined by the size of their individual losses. In contrast, individual lawsuit settlements involve only one claimant and usually involve negotiating with the defendant for a specific amount of compensation for their losses. This can be beneficial to the claimant, as the parties can come to a settlement that is specifically tailored to the claimant’s individual needs. Additionally, a claimant in an individual lawsuit settlement is not bound by the settlement amount reached in any other lawsuit. In Washington, both class action and individual lawsuit settlements are legally binding, meaning that if a settlement is reached, the defendant is legally obligated to pay the agreed upon amount. The settlement amount must also be approved by the court in order to become legally binding. Furthermore, both types of settlements provide a way for a party to resolve a dispute without having to go through the full trial process, which can take a long time and be expensive.

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