What is the difference between a settlement class and a damages class?

A settlement class and a damages class both refer to types of class action law. In West Virginia, class action lawsuits are typically filed when a large group of people share a common legal problem, such as a defective product or breach of contract. Class action lawsuits involve two types of classes: settlement classes and damages classes. A settlement class is when the parties involved in the lawsuit come to a settlement agreement out-of-court. This settlement typically involves the distribution of a certain amount of money amongst the plaintiffs, with each individual receiving a predetermined amount known as “class settlement funds”. On the other hand, damages classes involve a court-administered distribution of money from the defendant to the plaintiffs. Instead of a lump-sum payment, each plaintiff in a damages class will receive an individual award from the court. This award generally depends upon the severity of each individual’s injury, with those with the most substantial injuries receiving larger awards. In conclusion, the primary difference between a settlement class and a damages class is that in a settlement class, the parties to the lawsuit come to a settlement agreement out-of-court, while in a damages class, the court administers a distribution of money from the defendant to the plaintiffs.

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What is the difference between a settlement class and a damages class?

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