What is the legal effect of a class action settlement?

A class action settlement is a legal agreement reached between the parties in a civil lawsuit to resolve the claims of multiple individuals in one action. In California, a class action settlement is approved by the court when the class representative and respondent agree on the settlement terms. Once approved, the settlement is binding on all members of the class, meaning that all class members are legally bound by the terms of the settlement and can no longer pursue claims against each other. It is important to note that the settlement is only binding on the parties to the action, meaning the respondent and class representative can no longer sue each other but the defendant is still free to pursue other claims related to the class action. Additionally, if any members of the class disagree with the settlement terms they can choose not to accept them, however, they are still bound by the decision of the court and must abide by the terms of the settlement. The benefit of a class action settlement is that it can provide a resolution to a case without further litigation. It can also provide significant monetary relief for class members who may have otherwise struggled to find a resolution through the court system. Finally, class action settlements can help to deter similar conduct in the future as those responsible may be more likely to comply with the court’s ruling.

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What is the legal effect of a class action settlement?

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