How do class action settlements compare to individual lawsuit settlements?

Class action settlements and individual lawsuit settlements are different in many ways. Class action lawsuits involve a group of people who have suffered similar harm, and they are able to join together to form a single, larger claim. Because many people are involved, the amounts claimed in class action lawsuits tend to be much greater than those claimed in individual lawsuits. Individual lawsuit settlements involve only one person who has suffered harm, and the settlement amount is usually based on the unique damages suffered by that individual. As such, individual lawsuit settlements tend to be much smaller than class action settlements. In addition, the resolution of individual lawsuits often comes with more uncertainty than it does with class action settlements. This is because the acceptance of a settlement by an individual is voluntary, and the individual may choose to litigate the case instead of accepting the settlement. Class action settlements, on the other hand, must be approved by the court, and all members of the class are bound by the results. Overall, class action settlements and individual lawsuit settlements are two distinct methods for seeking compensation for harm suffered. While class action settlements offer a larger potential payout, the outcome of individual lawsuits is less certain and may ultimately yield a smaller payout for the individual.

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